Employers cannot deduct compulsory KiwiSaver from those on the minimum wage: A recent Court of Appeal decision has confirmed that compulsory employer KiwiSaver contributions cannot be deducted from the minimum wage paid to employees. This decision upheld an Employment Court decision that said the purpose of the minimum wage was to ensure workers received base wages to allow them to meet living expenses. A component of savings for retirement was not built into the minimum wage.
No offsetting high and low season wages: More on the minimum wage … the Employment Relations Authority recently ruled that employers cannot average out weekly pay over a season. There can be
no offsetting high season wages against wages paid in the low season.
Any salary package must be at least at the level of the minimum wage, currently $13.75/hour. If you have an employee paid on a daily rate, the minimum is $110/day and $13.75/hour for each hour exceeding eight hours worked that day. On a weekly basis, the minimum is $550/week and $13.75/hour for each hour exceeding 40 hours worked by your employee that week.
We remind all employers that you must keep accurate and timely records for all your employees’ wages.