# Setting pay, pay reviews and pay rises Official source: https://www.employment.govt.nz/pay-and-hours/pay-and-wages/paying-employees Scanned: 2026-06-07T03:31:31.402Z Use this as a current official guidance reference, not as a substitute for legal advice. ## Page Text Home Pay and hours Pay and wages Setting pay, pay reviews and pay rises Pay and wages Pay and hours Pay and wages Minimum wage Holidays and leave pay Types of pay Allowances Deductions and premiums Pay periods and paydays Payslips Final pay Setting pay, pay reviews and pay rises Hours and breaks Employers Setting pay, pay reviews and pay rises An employee’s pay is set by agreement between the employee and the employer – as long as it's at least the relevant minimum wage and meets the requirements of the employment agreement. Your duties when setting pay You must: negotiate with your employee in good faith to agree on the rate of pay, and include the agreed rate in their employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. pay employees whatever rate has been agreed to, and this rate must be at least the current minimum wage The lowest amount an employee can be paid per hour. There are 3 types of minimum wage: adult, starting-out and training. There is no minimum wage for employees younger than 16 years old. rate if they are aged 16 years or over pay wages in money, not through other non cash benefits (except for deductions from wages agreed by an employee for accommodation or other goods or services) Deductions keep accurate records of hours worked, wages payable (and paid), and leave taken. Keeping records Minimum wage At least the minimum wage must be paid for each hour worked – wages cannot be averaged over a season. If the minimum wage rate is increased, you must increase wage payments to at least the new minimum wage rate from the time the new rate takes effect. Minimum wage rates and types You cannot pay an employee a different amount based on their: gender skin colour, race, ethnic or national origins marital or family status (including pregnancy or childbirth status) age disability religious or ethical beliefs political opinion sexual orientation union An organisation that supports and advocates for employees in the workplace. Unions bargain for collective agreements and help employees with information and advice about work-related issues. membership or activity. Pay and gender equity Hiring CareersNZ has information about the pay range for many jobs. CareersNZ (external link) Pay reviews There is no legal obligation to review an employee's pay. If you do review pay, you can link it to specific performance criteria. You can also review pay and decide not to increase it, if it is at least the relevant minimum wage rate. If an employee is unhappy about their current wage rate, they can ask you for a pay rise. You must consider and respond to the request in good faith An underlying principle in employment law which requires employers and employees to deal with each other honestly, openly, and in a fair and timely way. . Performance management, training and development Pay rises You do not have a legal obligation to provide a pay rise or conduct a performance review unless it is in an employment agreement A written document setting out the terms and conditions of employment agreed by the employer and employee (also known as a ‘contract of service’). It can include other contractual documents and agreements made by the employer and employee. Every employee must have a written employment agreement. or workplace policy Workplace policies and procedures explain the rules and expectations in the workplace. . However, it is best practice to regularly review employees' performance and pay. You and your employee should negotiate: rates of pay salaries bonuses review periods pay rises. Workplace policies and procedures Collective and individual agreements Pay for working when daylight saving changes If an employee is at work when daylight saving: Starts, at 2am on the last Sunday in September, the employee will work an hour less than they otherwise would have. They must be paid for the lost hour. Ends, at 2am on the first Sunday in April, the employee will work an extra hour than they otherwise would have and must be paid for this hour. The Chatham Islands do not observe daylight saving time. Get advice If you are unsure about your rights or responsibilities or need advice, call us on 0800 20 90 20 or email us. Contact us Pay and the minimum wage [PDF, 540 KB] Published: 29 February 2024 Last modified: 11 November 2025 Written for: Employers Share this page: Print this page: