Minimum Wage After Tax
The adult minimum wage is $23.95 an hour before tax from 1 April 2026. Forty hours a week is $958.00 gross, and after PAYE and a 3.5% KiwiSaver contribution $761.06 reaches your account. Across a year that is $49,816 gross and $39,575 in hand.
The three minimum wage rates from 1 April 2026
| Rate | An hour | A 40-hour week | A year |
|---|---|---|---|
| Adult | $23.95 | $958.00 | $49,816 |
| Starting-out | $19.16 | $766.40 | $39,853 |
| Training | $19.16 | $766.40 | $39,853 |
The starting-out and training rates are both 80% of the adult rate, a gap of $4.79 an hour. Over a 40-hour week that is $191.60 of gross pay, and $9,963 across a year. There is no minimum wage for employees under 16.
What the adult rate leaves you, by hours worked
Tax code M, 3.5% KiwiSaver, no student loan. Every figure is calculated the way a weekly pay run calculates it, so the cents match a payslip rather than an annual figure divided by 52.
| Hours a week | Gross a week | PAYE | KiwiSaver | Take-home |
|---|---|---|---|---|
| 20 hours | $479.00 | − $71.20 | − $16.76 | $391.04 |
| 25 hours | $598.75 | − $94.25 | − $20.95 | $483.55 |
| 30 hours | $718.50 | − $117.31 | − $25.14 | $576.05 |
| 37.5 hours | $898.13 | − $151.88 | − $31.43 | $714.82 |
| 40 hours | $958.00 | − $163.41 | − $33.53 | $761.06 |
At 20 hours a week you keep 81.6% of your gross. At 40 hours you keep 79.4%, because the second half of the week is taxed at a higher rate than the first.
With a student loan
Full-time minimum wage income of $49,816 is comfortably above the $24,128 repayment threshold, so an SL code takes 12% of the gross above $464.00 a week.
| Tax code | Gross | PAYE | Student loan | KiwiSaver | Take-home |
|---|---|---|---|---|---|
| M | $958.00 | − $163.41 | − | − $33.53 | $761.06 |
| M SL | $958.00 | − $163.41 | − $59.28 | − $33.53 | $701.78 |
A difference of $59.28 a week, or $3,083 a year. That is repayment of your own debt rather than tax, and it comes off the loan balance.
A full week at $23.95 an hour
- 1.40 hours of gross pay$49,816 a year at these hours$958.00
- 2.PAYE: income tax plus the ACC earners' levyThe levy alone is 1.75% of your gross− $163.41
- 3.KiwiSaver at 3.5%Matched by your employer, on top of your pay− $33.53
- Into your account$761.06
Tax code ME is worth $520 a year here
Full-time minimum wage income of $49,816 sits inside the $24,000 to $66,000 band for the independent earner tax credit, so the credit is worth its full $520 at this income. On code ME it arrives as about $10.00 a week in your pay. On code M you still get it, but only as a lump sum after 31 March. It is unavailable if you receive Working for Families, an income-tested main benefit, NZ Superannuation or a Veteran's Pension.
The starting-out rate, after tax
At $19.16 an hour, a 40-hour week is $766.40 gross and $613.06 in hand on code M with a 3.5% KiwiSaver contribution. Against the adult rate that is $148.00 a week less after tax, from a gross gap of $191.60. Tax takes part of the difference, so the after-tax gap is narrower than the headline one.
The starting-out rate is not a general junior rate. It applies to three defined groups: 16 and 17 year olds in their first six months with an employer, 18 and 19 year olds who have been on a specified social security benefit for six months or more and have not since completed six months of continuous employment, and 16 to 19 year olds in a recognised industry training programme. Outside those cases a 16 year old is entitled to the adult rate.
The minimum wage applies to hours actually worked
Your employer must pay at least the minimum rate for every hour you work, before any deduction. Unpaid trials, unpaid training and time spent opening or closing outside your paid hours all count as work. Lawful deductions such as PAYE, KiwiSaver and student loan repayments come off after that test is met, which is why your take-home rate is below the minimum wage without anything being wrong.
Common questions
What is the minimum wage in New Zealand after tax?
The adult rate is $23.95 an hour before tax from 1 April 2026. At 40 hours that is $958.00 gross a week, and after PAYE and a 3.5% KiwiSaver contribution about $761.06 reaches your account.
Is the minimum wage before or after tax?
Before tax. The rate is a gross rate for every hour actually worked. PAYE, KiwiSaver and any student loan repayment come out afterwards, so what lands in your account is always lower. The gross versus net page walks the whole gap.
Do you pay student loan on the minimum wage in New Zealand?
On full-time hours, yes. Forty hours at $23.95 is $49,816 a year, well above the $24,128 threshold, so an SL code deducts 12% of the excess. At 20 hours a week you sit barely above the threshold, and the deduction is a couple of dollars a week.
Should someone on the minimum wage use tax code ME?
Full-time minimum wage income of $49,816 sits inside the $24,000 to $66,000 independent earner tax credit range, so tax code ME delivers $520 a year, about $10.00 a week, through your pay. It is unavailable if you receive Working for Families, an income-tested main benefit, NZ Superannuation or a Veteran's Pension.
What are the starting-out and training minimum wages?
Both are $19.16 an hour from 1 April 2026, which is 80% of the adult rate. The starting-out rate covers 16 and 17 year olds in their first six months with an employer, 18 and 19 year olds who have been on a specified benefit for six months or more, and 16 to 19 year olds in an industry training programme. The training rate covers employees aged 20 and over in recognised industry training.
Is there a minimum wage for under 16s in New Zealand?
No. No minimum rate is set for employees under 16. Every other employment right still applies, including a written agreement, rest breaks, holiday pay and the rules on what can be deducted from pay.
Where these figures come from
- Employment NZ. Minimum wage rates
- IRD. Tax rates for individuals
- IRD. ACC earners' levy rates
- IRD. Student loan repayments
- IRD. Independent earner tax credit
2026–27 tax year (1 April 2026 – 31 March 2027). Last verified 30 July 2026.
Related
- living wage vs minimum wageThe other hourly benchmark, and the gap
- average and median wage after taxWhere the floor sits against typical pay
- hourly rate and salary calculatorAny rate, any hours, both directions
- tax code ME$520 a year at this income level
- weekly pay calculatorExact figures for a weekly cycle
- student loan repayments12% above $24,128
- take-home pay calculatorEvery deduction, on your own numbers