A number of changes will come into effect from the 1st April next week. Find out what these are and how they may impact your business.
Rise in minimum wage
From the 1st April 2019 the minimum wage will rise to $17.70 per hour, an increase of $1.20 per hour.
This means for an employee on minimum wage working a 40 hour week, their salary will increase by $48 to $708 a week (based on a 40 hour week before taxes or deductions).
The starting out and training wage will also increase to $14.16 per hour.
If you have staff employed on the minimum wage, ensure you and your accounts person/team have updated your relevant documents and programmes to reflect this change.
The Government plans on future increases to the minimum wage to $18.90 next year and $20 per hour by 1 April, 2021.
The new payday filing requirements mean employers will need to report their information to Inland Revenue on the day they pay their staff. If your business makes over $50,000 PAYE/ESCT deductions a year, this information is required to be filed electronically within two working days of the payday. Businesses who pay less have the option of electronic or paper filing. Payday filing replaces the current employer monthly schedule (EMS).
For more information on Payday Filing visit Inland Revenue online.
Victims’ Protection Act
This legislation introduces a new category of leave for employees affected by domestic violence. It provides up to 10 days of paid leave per year to victims of domestic violence or caregivers of children affected by domestic violence. To be able to qualify for this leave, the requirements are similar to sick or bereavement leave in that an employee must be employed for 6 months or more.
Proposed changes to KiwiSaver
You may have also heard about proposed changes to KiwiSaver, with regards to employee contributions, the contributions holiday and joining KiwiSaver at 65. We will advise more details regarding these proposed changes when they are confirmed.