Anyone who’s tried to budget around a full-time pay packet in New Zealand knows the squeeze — rent, food, power, and not much left over. That everyday reality is what makes the difference between the minimum wage and the living wage more than just a number, and the latest living wage rate of $28.95 per hour, set by the Living Wage Movement Aotearoa New Zealand (official movement), sits well above the statutory minimum of $23.50, with more than 300 accredited employers already committed to paying it.

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Current Living Wage (2025/26): $28.95 per hour · Current Minimum Wage (2025): $23.50 per hour · Living Wage 2026/27: $29.90 per hour

What is the difference between minimum wage and living wage in NZ?

The minimum wage is the legal hourly rate set by the government at $23.50 per hour. The living wage is a voluntary hourly rate for employers accredited by the Living Wage Movement Aotearoa New Zealand. Minimum wage is mandatory; the living wage is voluntary, not mandatory.

  • Living wage 2025/26: $28.95/hour — voluntary accreditation required (1News)
  • Adult minimum wage 2025: $23.50/hour — legally required for all employees (MBIE)
  • The living wage exceeds the minimum wage by $5.45 per hour — a gap of about 25% (1News)
  • Living wage rises faster than minimum wage most years (Living Wage Movement)
  • Minimum wage is mandatory — Xero

The 2025/26 rate of $28.95 per hour was described as being about 68% of average hourly earnings in New Zealand, according to 1News.

  • 40 hours at minimum wage ($23.50): $940 per week before tax (MBIE)
  • 40 hours at living wage ($28.95): $1,158 per week before tax (1News)

The current rate of $23.50 took effect on 1 April 2025 under the Minimum Wage Order 2025, published by MBIE.

What to watch

If the government follows recent patterns — increases of around $1.00 to $1.50 per year — the 2026 minimum wage could land around $24.50–$25.00. But the living wage, already at $28.95, is projected to reach $29.90 in September 2026, meaning the gap is likely to stay wide.

Current New Zealand wage rates at a glance

  • 2024/25: Living wage $27.80/hour — an increase of $1.80 on the 2023/24 rate (Living Wage Movement)
  • 1 Apr 2025: Minimum wage rises to $23.50/hour (MBIE)
  • 1 Sep 2025 – 31 Aug 2026: Living wage $28.95/hour (1News)
  • 1 Sep 2026 – 31 Aug 2027: Living wage $29.90/hour (1News)

The 2025/26 living wage is $1.15 higher than the 2024/25 rate.

What is the current living wage rate in New Zealand?

Current living wage rate $28.95 (2025/26). Living wage for 2026/27 is $29.90 (announced).

Wage salaries and other rates

  • Adult minimum annual salary (40h/week): $48,880 (based on $23.50/h from MBIE)
  • Starting-out / training minimum wage: $18.80/hour (MBIE)
  • The living wage of $28.95 per hour translates to an annual salary of about $60,216 — roughly $11,300 more than the minimum wage floor. Xero (NZ payroll and accounting platform) notes that while employers are only legally required to pay the minimum, many choose the Living Wage.

The Employment New Zealand (government workplace guidance) site states that minimum wage adjustments are informed by economic conditions and productivity.

Living Wage accreditation and methodology

Only employers who seek and maintain accreditation through the Living Wage Movement are required to pay the Living Wage. The legal minimum is still set by the government at $23.50 per hour (MBIE).

More than 300 employers across New Zealand are currently accredited, according to the Living Wage Movement.

The Living Wage Movement publishes its methodology on its official site.

The Living Wage applies on an hourly basis, so part-time workers at accredited employers receive the same $28.95 per hour as full-time staff.

Related reading: **Net Pay Calculator NZ 2026** · **Seasonal Work Visa NZ 2026**

Additional sources

peninsulagrouplimited.co.nz, calculate.co.nz, newzealand-finance.nz, finalroundai.com, finalroundai.com, calculate.co.nz, moneybalance.co.nz, 1news.co.nz

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Frequently asked questions

What is the difference between minimum wage and living wage in NZ?

The minimum wage is the legal floor set by the government at $23.50 per hour. The Living Wage is a voluntary hourly rate of $28.95 for accredited employers.

What is the current living wage rate in New Zealand?

The current Living Wage rate is $28.95 per hour for 2025/26 and rises to $29.90 per hour for 2026/27.

For the whānau budgeting week to week, the implication is clear: check whether your employer is accredited, and if not, the difference between $23.50 and $28.95 is the difference between getting by and getting ahead.