The start to the financial year has seen increases in minimum wage and IRD mileage rates along with the final changes from the 2016 implementation of minimum employment standards come into effect.
Minimum wage rates effective 1st April, 2017 are:
- $15.75 per hour for adult minimum wage, an increase of 50c per hour and
- $12.60 per hour for starting-out workers and trainees, an increase of 40c per hour.
KiwiSaver and annual holidays remain additional to these rates.
If you would like more information about minimum wage rates or starting out workers, contact a member of the Grow HR team on 06 878 5454 or email team@growhr.co.nz
Minimum Employment Standards
The minimum employment standards that first came into effect in 2016 are also now in place for staff who were already employed. The key change to note is that employers can no longer require waged staff in particular to be available to work hours that are not specified in employment agreements unless they are reasonably compensated for that availability. Employers are also no longer permitted to restrict other employment, take deductions without consultation or cancel shifts without reasonable notice or compensation.
If you have not had your employment agreements and practices checked post 1st April 2016 do contact a member of the Grow HR team on 06 878 5454 or email emmily@growhr.co.nz.
IRD Mileage Rates
The 2017/18 IRD mileage rates have now been confirmed as:
- 73 cents per km for petrol, diesel and hybrid cars
- 81 cents per km for electric cars
These rates are intended for persons whose business travel is less than 5,000 for the income year to reflect average motor vehicle operating costs. Alternatives such as the AA running cost data are still able to be used for reimbursing employees for use of their private vehicle. If you are unsure what rate you should be using in your business contact a member of the Grow HR team on 06 878 5454 or email team@growhr.co.nz