NZ minimum wage 9th highest in the world, international study finds

Wednesday, 17 September 2025

NZ has a relatively high minimum wage and a small gap with the median wage.

New Zealand has the ninth-highest minimum wage in the world when the pay rates are adjusted for their purchasing power, according to an international study.

The research by Moorepay, one of Britain’s largest payroll providers, calculated the country’s annual adult minimum salary of $48,880 as equivalent to 32,845 “international dollars”.

The calculation involves converting the wage rates into US dollars and then adjusting them for what that money would buy in each country, versus what they would buy in the United States.

Australia and the UK ranked the second and fourth most-generous, according to Moorepay’s methodology, with the Netherlands topping the table with an adjusted figure of 38,810 international dollars.

It put New Zealand’s minimum wage ahead of Canada, Denmark and Spain.

Five unions representing female-dominated workforces are challenging the Government's scaling back of the Equal Pay Act in court, arguing changes to the pay equity process have breached the Bill of Rights.

The US, with an adjusted annual minimum wage of US$15,080, ranked 23rd in the survey, just below Japan and Poland.

The comparison was based on the rates that were effective in June in 145 countries.

Many countries do not have a minimum wage. Mostly these are poorer countries, but Scandinavian nations — except Denmark — and Switzerland and Italy were also excluded from Moorepay’s study due to the lack of a direct comparison.

Infometrics economist Brad Olsen said the way pay rates had been compared in the study was probably fair and New Zealand’s relatively high ranking wasn’t a surprise.

“We know that the gap between the minimum wage and the median wage is relatively small.

“We've seen some pretty large increases in the minimum wage in recent years — not as much this year — but that's after a period of some pretty substantial gains,” he said.

In contrast, the minimum wage in the US had not risen for about 15 years, Olsen noted.

The US last increased its federal minimum wage in 2009, when the hourly rate went up to US$7.25 (NZ$12.08) an hour.

Council of Trade Unions economist Craig Renney said the key test was “not whether we are first, second, eighth, or 16th — it's whether or not the minimum wage allows people to lead a decent life, to buy the things that they need”.

“If you're on the minimum wage in New Zealand, you're certainly not feeling wealthy.”

“We’ve always sought, in the trade union movement, to have a minimum wage that allows people to lead a decent life. There are still plenty of questions about whether or not New Zealand's minimum wage at its current level allows for that,” he said.

Selected annual minimum pay in “international dollars”

Netherlands: 38,810

Australia: 37,895

UK: 36,589

NZ: 32,845

Canada: 32,322

Spain: 28,087

Japan: 22,910

United States: 15,080

China: 8875

South Africa: 8188

India: 3172

Source: Moorepay Ltd