Covid-19 – Minimum Wage Increase Implications

Wednesday 1 April 2020

Today’s Update is focused on Minimum Wage obligations (with three additional items of ways of coping with the shutdown)

It is really important that you get the increase in minimum wage processed properly – and this applies just as much to those of you closed down as it does for those still operating. See attached for guidance. 


Further items and ideas for things to do while locked down:

Beccy has been doing some research into working from homehere are her 6 steps for “surviving working from home” … with kids  (This time the link should work!) 

The Employers Chamber of Commerce have an online support update at 10:30 tomorrow morning on Managing during these times of unprecedented change. It’s free to all.  Check it out: 

Workplace Wellbeing also have a range of resources available that may interest you.  Check them out on  And if you say you are a client of mine you can get a 15% discount!  Thanks Jo.

1.       Non-essential Businesses

a.       Staff at home and not working

                                                                           i.      If you are paying just the subsidy and they get the full subsidy – no change

                                                                         ii.      If you are paying them 100% of their normal pay because that is less than the subsidy, with effect from today you must recheck their 100% normal pay with a minimum pay rate of $18.90 per hour (unless they are on the training or starting wage of $15.12)

                                                                       iii.      If you are topping up, check exactly what you are committed to – if you have agreed to top up to 80% of their normal pay, then for those previously paid lower than the new minimum wage you will need to increase your pay so that it is in line with the increased wage.

                                                                       iv.      If you are topping up using annual leave then the value of these leave days may increase, in that their new ordinary pay may now be higher than their average pay.  Sick leave taken by anyone on minimum wage will definitely increase to the new rate.

b.      Staff at home and working

                                                                           i.      If any of your staff are working from home and will be entitled to an increase in hourly rate, then you will need to recalculate the value of the hours they actually work and be sure that the total amount you are paying is no less than their wages for the hours they work. Otherwise follow the same guidelines as for “not working” (above)


Need help managing staff?

Mike has a wealth of experience advising on every aspect of the employer-employee relationship. I can give you per-phone guidance or work along side you to make things happen.

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