Apprentices are employees with the same rights as anyone else — they earn wages, accrue leave, join KiwiSaver if eligible, and get paid for work performed. New Zealand has three minimum wage types that may apply to apprentices: adult, starting-out, and training. From 1 April 2025, the legal hourly minimums are: adult $23.50, starting-out $18.80, and training $18.80 (pre-tax). These are the legal floors; many employers pay above to attract and retain talent.
Tip: If you use a salary for apprentices, always check that total pay divided by actual hours worked never falls below the correct hourly minimum.
Which rate applies? It depends on age and training status. Apprentices 20+ are commonly paid at least the training minimum where their employment agreement requires participation in an approved industry training programme (e.g., completing a set number of NZQA credits each year). Some 16–19 year-olds can be paid the starting-out rate (typically for the first six months with you), provided all statutory criteria are met. If neither starting-out nor training criteria apply, the adult minimum wage is the floor.
| Type | Who it can apply to | Rate (from 1 Apr 2025) |
|---|---|---|
| Adult | Anyone 16+ where starting-out/training criteria don’t apply, or where the person supervises/trains others. | $23.50 / hr |
| Starting-out | Some 16–19 year-olds (e.g., first 6 months with the same employer), subject to the law’s conditions. | $18.80 / hr |
| Training | Employees 20+ (and some 16–19) whose agreement requires industry training towards qualification. | $18.80 / hr |
During normal hours: If training is required for the job and occurs in normal working hours, it is paid. This covers on-job learning needed to perform work safely and competently.
Outside normal hours or formal courses: Pay is by agreement. Decide up front whether you will pay wages for night classes or block courses, and what fees or travel you’ll cover. Record it in the employment agreement or a signed variation.
Apprentices accrue leave the same way as other staff. After 12 months’ continuous service they’re entitled to at least four weeks’ paid annual holidays. Eligible employees receive 10 days’ paid sick leave per year (after six months’ service, then annually). Public holidays, bereavement leave and family violence leave apply as provided by law.
If the apprentice is in KiwiSaver and eligible, employer contributions are on top of wages — you can’t count them towards the minimum hourly rate.
Most employers pay above the floor and build in staged increases that reflect growing productivity and responsibility. A simple approach is to tie pay steps to evidence the apprentice can control: signed-off unit standards, verified competencies, or safe operation of higher-risk equipment. Make the triggers specific, name who signs them off, and state when increases take effect (e.g., “the next full pay period after verification”).
What it is: A monthly payment to employers to help keep and take on apprentices. In 2025 it is $500 per month per eligible apprentice (excl. GST), paid monthly in advance. You can use it to offset wages, supervision time, or other training costs.
Duration: For apprentices supported from 1 Jan 2025, up to 12 months per apprentice.
Eligibility (high level): Apprentice is employed by you and enrolled in an approved apprenticeship with an active training agreement; within their first 12 months of an apprenticeship pathway; meets MSD/TEC checks. Some public-sector employers and those receiving certain other subsidies are ineligible.
What it is: From 1 January 2025, eligible first-time tertiary learners can get fees covered for the final year of their first completed provider-based qualification or work-based programme, up to $12,000. For apprentices, this generally helps with programme/assessment fees near the end of their first completed apprenticeship. It doesn’t cover wages.
When planning total cost, add: (1) the hourly wage at or above the correct minimum, (2) employer on-costs (e.g., KiwiSaver), (3) any paid training time you’ve agreed to, (4) PPE and tools you provide, and (5) travel/accommodation you reimburse for off-job training where that’s your policy. The Apprenticeship Boost can offset part of this for up to 12 months — remember it’s paid in advance and requires monthly reconfirmation.
Pitfalls: Using the wrong minimum wage type; not paying for required training during normal hours; salary falling below the minimum once hours are reconciled; missing Boost reconfirmations; not documenting who pays fees or travel.
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