What Is The NZ Minimum Wage Top-Up And How Do I Override It?

The NZ Minimum Wage Top-Up is an automatic calculation that ensures an employee's wages for hours worked in a pay period meet the statutory minimum hourly rate under the Minimum Wage Act 1983. When an employee's effective hourly rate (wages for work performed divided by hours worked) falls below their applicable tier, Lightning Payroll adds a top-up row to bring their pay up to the legal floor.

Minimum Wage Tiers

Each employee is assigned one of three tiers, which determines which rate applies:

• Adult ÔÇö the standard adult minimum wage; applies by default to all employees
• Starting-Out ÔÇö the starting-out minimum wage rate; applies to eligible workers aged 16ÔÇô19 in their first six months with an employer, or 16ÔÇô19-year-olds who have been on a benefit for six months or more
• Training ÔÇö the training minimum wage rate; applies to employees of any age doing recognised industry training involving at least 60 credits a year

The top-up calculation uses the rate in effect on the pay period end date. Leave time and leave payments are excluded from the check ÔÇö only wages for time-based hours worked are compared against the floor.

Setting an Employee's Tier

In the desktop app: open the employee, go to the Leave tab, and locate the NZ Minimum Wage Tier dropdown. Select Adult, Starting-Out, or Training and save.

In the online (web/mobile) app: open the employee, select the Leave sub-section, and use the NZ minimum wage tier dropdown to choose the correct tier.

When the Top-Up Row Appears

The Min Wage Top-Up row appears automatically on the pay summary when a top-up is owed. It remains hidden when the calculated amount is zero and no manual override has been set, keeping pays uncluttered for employees whose rate already meets the minimum.

Overriding the Top-Up Amount

In most cases no action is needed ÔÇö the amount is calculated live and requires no intervention. If you need to adjust it:

In the desktop app:

1. Open the pay. The Min Wage Top-Up row is visible in the pay summary when a top-up applies.
2. Click the Edit button next to the row to open the NZ Minimum Wage Top-Up dialog.
3. The dialog shows a read-only breakdown: tier, minimum wage rate, hours worked, statutory floor, wages for work performed, and the auto-calculated top-up amount.
4. Enter your override amount in the editable field.
5. Click OK to save. The row label will show (edited) to indicate a manual override is active.
6. To revert to the automatic calculation, click Reset to auto.

In the online (web/mobile) app:

1. Open the pay. The Min Wage Top-Up row is visible in the pay summary when a top-up applies, with an Edit link beside it. When manually overridden, the row shows (edited).
2. Click Edit to open the NZ Minimum Wage Top-Up dialog.
3. The dialog shows: Tier, Minimum wage ($/hr), Hours worked, Statutory floor, Wages for work performed, and Auto-calculated top-up.
4. Enter your amount in the Top-up amount field and click Save.
5. To revert, click Reset to auto.

Tax Treatment

The top-up amount is treated as ordinary gross wages. It is included in PAYE, KiwiSaver (employee and employer contributions, ESCT), Student Loan, and ACC earners' levy, and flows through to the gross earnings figure on your Employment Information return ÔÇö no separate entry is required.