ACC Levy and Minimum Wage Changes from 1 April
As 1 April approaches, employers should be aware of updates to the minimum wage and ACC earners’ levy rates. While these changes should automatically flow through payroll systems, it’s worth understanding their impact and checking systems are up to date.
These changes come alongside the KiwiSaver updates we outlined in our February blog.
Minimum Wage Increase
From 1 April, the adult minimum wage increases to $23.95 per hour, with the starting‑out and training minimum wage increasing to $19.16 per hour.
While the change itself is modest, it may have wider implications for overall wage costs, holiday pay provisions, and internal pay relativities. Employers should also review salaried roles to ensure the effective hourly rate remains above the new minimum once hours worked are taken into account.
ACC Earners' Levy Update
ACC has confirmed an increase to the earners’ levy rate, which applies to employee earnings and is deducted through payroll. From 1 April, the levy increases to $1.75 per $100 of earnings, with the maximum liable earnings threshold also increasing.
While this levy is deducted from employees’ pay, you should ensure your payroll systems have been updated. Employees may also notice a small reduction in their net pay.
Next Steps
If you would like help checking payroll settings or understanding how these changes apply to your business, our team can assist. A quick review now can help avoid issues later.
