Pay 5 October 2026 · 3 min read

Living wage NZ 2026

$29.90 an hour for 2026–27. It's voluntary, and it isn't the minimum wage.

The New Zealand Living Wage for 2026–27 is $29.90 an hour. That's 95 cents more than last year's $28.95. But no employer has to pay it. It's a voluntary rate, and it's a different thing from the legal minimum wage.

The living wage rate for 2026–27

Living Wage Aotearoa New Zealand says the rate rose to $29.90 an hour from 1 April 2026. Accredited Living Wage employers had until 1 September 2026 to start paying it.

YearLiving WageAccredited employers pay it from
2026–27$29.90 an hour1 September 2026
2025–26$28.95 an hour1 September 2025

The rate is worked out independently each year by the Family Centre Social Policy Research Unit. It's updated in line with movements in average ordinary hourly earnings from the previous December quarter.

Living wage vs minimum wage

These two get mixed up all the time. Here's the difference.

Minimum wageLiving Wage
Rate$23.95 an hour (adult)$29.90 an hour
From1 April 20261 April 2026 (employers had until 1 September)
Set byThe governmentLiving Wage Aotearoa New Zealand
Do employers have to pay it?Yes, it's the lawNo, it's voluntary
Enforceable?Yes, by lawNo. Employers choose to pay it and can apply for accreditation

The minimum wage is the lowest hourly rate most adult employees can legally be paid. If you're paid less, your employer is breaking the law.

The Living Wage is different. Living Wage Aotearoa describes it as "the income necessary to enable workers and their families to live with dignity, afford the basic essentials and participate as active citizens in society." It's a benchmark employers can choose to meet. If your employer doesn't pay it, they're not doing anything unlawful.

What $29.90 an hour comes to

Here's the Living Wage next to the adult minimum wage, before tax, for a 40-hour week over 52 weeks.

Minimum wage ($23.95)Living Wage ($29.90)Difference
Per hour$23.95$29.90$5.95
Per week (40 hours)$958.00$1,196.00$238.00
Per year (52 weeks)$49,816$62,192$12,376

Tax, ACC and KiwiSaver come out of these amounts. The 2026–27 tax brackets show how income tax works on them.

Accredited Living Wage employers

Employers can become accredited Living Wage employers. Living Wage Aotearoa says more than 340 employers were accredited when the 2026–27 rate was announced. Its website lists them, so you can check whether a business you're thinking of working for is one.

If you want a pay rise to the Living Wage, it's something to raise with your employer or your union. It isn't something you can claim as a legal right.

Common questions

What is the living wage in NZ for 2026?

$29.90 an hour for 2026–27. Accredited Living Wage employers had until 1 September 2026 to start paying it.

Is the living wage compulsory in New Zealand?

No. Paying the Living Wage is voluntary. The legal floor is the minimum wage, which is $23.95 an hour for adults from 1 April 2026.

What was the living wage in 2025?

$28.95 an hour, from 1 September 2025.

How much is the living wage a year?

About $62,192 before tax for 40 hours a week over 52 weeks.

Who decides the living wage?

The Family Centre Social Policy Research Unit calculates it independently each year, and Living Wage Aotearoa New Zealand releases it.

For more on your pay and leave, see the guides to annual leave and sick leave.

Sources: Living Wage Aotearoa New Zealand, The updated Living Wage rate for 2026–27, Living wage rises to $29.90 per hour, Living Wage for 2025/26 is $28.95 per hour and What is the Living Wage?; Employment New Zealand, Minimum wage is increasing on 1 April 2026. Checked October 2026. General information, not legal advice.