Posted on: Apr 02, 2013
The new ‘starting-out wage’ will be an option for employers and employees from 1 May 2013.
The starting-out wage will give employers a real incentive to give young people a foothold on the employment ladder. Three groups will be eligible for the starting-out wage.
These are:
- 16- and 17-year-olds in their first six months of work with a new employer (or until they are training or supervising others)
- 18- and 19-year-olds who have been paid a benefit for six months or longer, and who have not completed six months of continuous work with any employer since starting on benefit (or until they are training or supervising others)
- 16- to 19-year-old workers in a recognised industry training course involving at least 40 credits a year.
Under the starting-out wage, eligible 16- to 19-year-olds can be paid 80 per cent of the adult minimum wage for six months OR for as long as they are undertaking recognised industry training of at least 40 credits per year.
The starting-out wage sits alongside other government initiatives aimed at helping more young New Zealanders into work or training, including Work and Income’s Job Streams.
From 1 May 2013 the starting-out wage will replace the new entrants wage and training minimum wage for under-20s.
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