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Wages and Deductions

Employee Essentials - Wages and Deductions

  • You must be paid at least the minimum wage for every hour you work. The government sets three different minimum wages: the adult minimum wage, the starting-out minimum wage, and the training minimum wage. If you are 20 or over and your job requires you to complete at least 60 credits a year of industry training to become qualified (such as an apprentice), the training minimum wage applies. However, if you supervise or train other employees at work, you must receive the adult minimum wage.

  • Your employer can only make deductions from your wages if they are specifically required by law (such as PAYE tax, student loan repayments, or child support). For any other deduction, your employer must first get your written agreement, and the purpose of that deduction must be legal and reasonable. Crucially, your employer cannot deduct wages for things like poor performance, failure to work your full notice period (unless agreed upon in writing and based on actual loss), or business costs outside of your control, such as breakages or customer theft.

  • Even if you are paid a fixed annual salary, you must still be earning at least the minimum wage for every hour you actually work. To check this, you should divide your total pay (including tax) by the number of hours you worked in that pay period. Employers must be careful not to allow salaried employees to work excessive hours, as this can unintentionally result in an hourly rate lower than the minimum wage.

  • Absolutely not. You must never be required to pay any money, fees, or premiums just to get or keep a job. This type of charge is unlawful. Furthermore, your employer cannot include clauses in your employment agreement that require you to repay costs when your employment ends, such as costs for on-the-job training.

  • Yes, it does. Work includes any activity that places constraints on your freedom, imposes responsibilities on you, or provides a benefit to the employer. Activities like after-hours meetings, on-the-job training, and procedures for opening or closing the business must be compensated. Training that is required by your employer during your normal working hours must be paid for.

  • Any suspension carried out by your employer should be on full pay. Suspension without pay can generally only be considered if this possibility is specifically set out in your employment agreement. If you feel your suspension was unjustified, you retain the right to challenge it as a personal grievance.

  • If you are a member of a union, your individual employment agreement is treated as if it contains a provision requiring your employer to deduct your union fees from your salary or wages on a regular basis, provided you give your consent for this to happen. The fees deducted must then be paid to the union concerned.

  • If an overpayment happens due to a specific event like an absence, a strike, a lockout, or a suspension, your employer must notify you right away and can deduct the amount within two months. For other one-off overpayment mistakes, your employer generally needs your written consent before taking the deduction. If you don't agree to the deduction, the parties may need to use mediation services to try and resolve the problem.

  • You should receive your final payment, which includes compensation for any unused holidays and other entitlements, on your last day of employment. If it is not possible to pay you on your last day, the final payment must be made no later than your next scheduled payday.

  • If you believe your employer has failed to pay you all the wages or other money due under your employment agreement, you can take action to recover those arrears through the Employment Relations Authority. This right applies even if you previously accepted payments at a lower rate or if there was an agreement to the contrary. A Labour Inspector can also bring an action for recovery on your behalf.

How Employee First NZ Can Assist You

At Employee First NZ, we’re dedicated to supporting employees across New Zealand with expert employment advocacy. Our state-of-the-art AI assistance, available 24/7, offers immediate, tailored preliminary advice to help you understand your wage entitlements and address unlawful deductions. Whether you’re navigating complex payslips, penal rates, or employer oversteps, our experts can provide you with clear guidance to ensure your rights are upheld.

Our services go beyond advice—we pride ourselves on providing FREE and UNLIMITED personalised support. While our AI offers initial insights, our experienced advocates step in to assist with negotiations or disputes, ensuring you receive fair pay and are not subject to unlawful deductions. With Employee First NZ, you gain peace of mind knowing your workplace rights are protected, anytime, anywhere.