Changes to the Youth Rate

Parliament has passed The Minimum Wage (New Entrants) Amendment.

From April 2008, 16 and 17 year old workers will need to be paid at least the adult minimum wage rate after they complete a period of 200 hours or three months employment (whichever comes first).

A new entrants’ rate (set at 80% of the adult minimum wage) will apply to the first 200 hours or three months of employment of 16 -17 year olds. The 200 hours may be accumulated across several employers. The new entrants’ rate will not apply to young people who are supervising or training others. In this situation the minimum adult rate will apply.

There is no change to the minimum rate payable to employees on formal industry training programmes and there remains no minimum rate for employees aged 15 years or under. Remember though that 15 year olds have a habit of turning 16.