Press release
The 2025/26 New Zealand Living Wage has been set at $28.95 per hour, a $1.15 increase that aligns with a 4.2% rise in New Zealand’s average hourly wage.
Effective from 1 September 2025, employees and contracted workers of accredited Living Wage Employers will earn at least $5.45 per hour more than the minimum wage.
The New Zealand Living Wage is independently calculated and updated annually by the Family Centre Social Policy Research Unit. It represents "the income necessary to provide workers and their families with the basic necessities of life, enabling workers to live with dignity and participate as active citizens in society."
The new rate, $28.95 per hour, is approximately 68% of the average hourly earnings in New Zealand.
“The Living Wage has made a real difference to workers for over a decade now,” says Gina Lockyer, Executive Director of Living Wage Aotearoa NZ.
Living Wage Aotearoa NZ offers accreditation to businesses and organisations that commit to paying at least the Living Wage to their staff and contracted workers.
342 businesses across various industries—including hospitality, finance, and retail—are accredited Living Wage Employers.
As well as paying the Living Wage to their direct employees, accredited Living Wage Employers must add Living Wage requirements in procurement contracts.
This means anyone delivering a regular ongoing service is also paid the Living Wage.
“Living Wage requirements in procurement are the most effective way to ensure everyone in the workplace is paid fairly,” says Gina.
“This distinction has lifted thousands of low-waged workers out of poverty and recognised the valuable and essential roles they fulfil.”
Concern over Government procurement changes
A proposal to scrap the Living Wage requirement in Government procurement raises concerns about the future of Government cleaners, security guards, and catering staff.
“These workers will miss out on the new Living Wage rate, and any future increases if the changes go ahead,” says Gina.
“The Government has two choices – a Living Wage that improves community outcomes and service delivery, or hardship for the people who keep their agencies safe, healthy, and secure,”
For further information, please contact:
Gina Lockyer
Executive Director, Living Wage Aotearoa NZ
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Additional information
The 2025/26 rate has been updated based on wage changes reported in Stats NZ’s Quarterly Employment Survey (QES). The 4.2% increase reflects wage movement for the year ending December 2024.
About the Living Wage Movement
The Living Wage Movement NZ is a coalition of unions, faith organisations, and community groups. It is not connected to any political party.