To encourage employers to take on New Zealand school leavers and young people without jobs who are living on a benefit the Government has introduced a youth wage. The new minimum wage (which is 80% of the adult minimum wage) commences on 1st May 2013 and will apply to a variety of younger people.
The categories covered by this ‘starting out’ wage structure covering 16 to 19 year olds are as follows:
- For 16 or 17 year old workers this start out wage will apply for their first six months of paid work at a current employer.
- If the new worker being employed is aged 18 or 19, has been on a benefit for at least six months and has not had a paying job of longer than six months with an employer since going onto that benefit.
- Youths aged between 16 and 19 who have been attending an industry recognised training course worth a minimum of 40 credits a year.
This start out wage applies to the under 20’s who meet the criteria and will replace the trainee and new entrant minimum wage – the over 20 trainee rate is still in effect.