NZ Employment Agreement Minimums: What's Changed in 2026

If you've recently started a new job — or you're about to sign an employment agreement — 2026 has brought a handful of changes worth understanding. Between a minimum wage increase that kicked in on 1 April and some broader amendments to employment law, there's more than usual to check before you put pen to paper.

This post walks through the key things to look for. It's not legal advice, but it should help you ask the right questions.

---

The Minimum Wage Has Gone Up

From 1 April 2026, the adult minimum wage in New Zealand increased to $23.95 per hour. The starting-out and training minimum wage rose to $19.16 per hour.

These rates are set by law, which means your employment agreement cannot pay you less than these amounts — full stop. If you're signing a new agreement and the hourly rate sits below either of these figures, that's something worth flagging before you sign.

If you're already employed and your pay was anywhere near the old minimum wage, your employer should have let you know about the change and confirmed your new rate in writing. According to Employment New Zealand, that written confirmation — whether a letter or email — counts as a variation to your employment agreement. If you haven't received anything and you think the change affects you, it may be worth following up.

---

What Your Employment Agreement Must Include

New Zealand law requires employers to provide all employees with a written employment agreement. That agreement must reflect certain minimum entitlements — and crucially, you and your employer cannot simply agree to less than what the law provides, even if you both sign something that says otherwise.

Some of the minimums the law protects include:

Minimum wage — as above, at least $23.95/hour for adult employees from 1 April 2026

Rest and meal breaks — employees are entitled to breaks during their working day

Annual holidays and public holidays — the Holidays Act sets out minimum leave entitlements

A safe workplace — your employer has obligations under health and safety law

If you're ever unsure whether something in your agreement meets these minimums, it's worth checking with a lawyer — you can find one at https://www.lawsociety.org.nz/for-the-public/find-a-lawyer/.

---

Changes for High Earners: A New Unjustified Dismissal Rule

One of the more significant shifts in 2026 relates to employees earning $200,000 or more per year. Following changes that came into force on 21 February 2026 under the Employment Relations Amendment Act 2026, employees at this income level under new employment agreements can no longer raise a personal grievance for unjustified dismissal (or unjustified disadvantage relating to a dismissal).

For existing employees at that income level, there appears to be a 12-month transition period. Employers can also, in some circumstances, opt out of this restriction — though the detail of how that works is something worth exploring with a legal professional if it applies to your situation.

If you're a higher earner reviewing a new employment agreement, this is a meaningful change to be aware of. The protections you may have expected around dismissal could look quite different from what they were previously.

---

The Holidays Act Is Also Under Review

It's also worth noting — though the detail is still emerging — that a new Employment Leave Bill was introduced in March 2026 with the aim of eventually replacing the Holidays Act. Until that Bill takes effect, the current Holidays Act rules continue to apply. It's worth keeping an eye on how this develops, particularly if leave entitlements are a key part of your employment agreement.

---

A Few Things to Check in Your Own Agreement

Whether you're reviewing a new employment agreement or dusting off an old one, here are some practical things to look at:

Is your hourly rate at or above $23.95? (Or $19.16 if you're on a starting-out or training wage?)

Are your leave entitlements clearly spelled out? Annual leave, sick leave, and public holiday provisions should all appear.

If you earn $200,000 or more, what does your agreement say about personal grievances? This may now be quite different from older agreements.

Has anything changed recently? If your employer updated your agreement after 1 April 2026 to reflect the new minimum wage, check that the variation was confirmed in writing.

---

Give Your Agreement a Closer Look

Employment agreements can run to many pages, and the clauses that matter most aren't always easy to spot. Clause's AI-powered contract review can help you understand what's in yours — highlighting the parts that seem unusual or worth a closer look, in plain English.

You can try a free preview at no cost to see how it works before committing to a full review.

---

This post is for general information only and does not constitute legal advice. Employment law can be complex and individual situations vary. If you have specific questions about your employment agreement or legal rights, please speak with a qualified employment lawyer — you can find one at https://www.lawsociety.org.nz/for-the-public/find-a-lawyer/.

---

This is general information, not legal advice. Always consult a qualified professional. Find one at lawsociety.org.nz/for-the-public/find-a-lawyer/

NZ Employment Agreement Minimums: What's Changed in 2026