Wages are payment for a certain amount for time worked. Normally this is per hour, for the number of hours actually worked. Salary, on the other hand, is a fixed amount, normally per year, regardless of the number of hours worked.
Commission is payment based on sales made or other kinds of targets met. It can be, for example, payment of a percentage of the total value of a sale made. Some people are employed on commission only; others may have a base hourly wage rate and paid a sales commission on top of this. If you’re paid on commission, you should still expect to receive at least the minimum wage.
See also: Minimum Wage
A piece rate is a type of commission payment where an employee is related to the number of “pieces” they work on. An example is being paid for the number of buckets of fruit picked, or the number of garments sewn. If you’re paid a piece rate, you should still expect to receive at least the minimum wage.
See also: Minimum Wage
Wages, salary, commission and piece rates are matters which are negotiable between an employer and employee. You can be paid whatever rate that you agree to, so long as it is above the statutory minimum wage rate.
The minimum wage is the amount that must at least be paid to an employee over the age of 16. The rates are set by the government and may change each year or every couple of years.
Other than the minimum wages set by law, there are no set standard or minimum industry wage rates. However, Kiwi Careers offers some guidelines as to what may be an appropriate rate for your industry and the type of work you do. Search their jobs database.
This can vary from job to job – there is no standard. The timing and frequency of your pay are normally contained in your employment agreement. It could state what day of the week you are paid, and at what interval, e.g. weekly, fortnightly, monthly. Your employment agreement should say how often you will be getting paid.
To make sure you get your first pay paid on time, give your employer all the right details (like your bank account and IRD number) so that they can pay you.
If you aren’t getting paid on time, have a talk to your employer and ask them why. You can call the Department of Labour’s Contact Centre on 0800 20 90 20 to find out what your rights are and what you can do.
Legally employers don’t have to give you a pay slip, although many employers do. However, employers must keep wage and time records, which set out (amongst other things) what hours you have worked, your pay rate and how much you have been paid. You (or your representative, if you have one) have the right to have a look at the wage and time records that relate to your employment at any time, and take copies. Employers have to keep wage and time records for six years.
Special rates for doing certain tasks or extra hours are commonly known as penal rates. Penal rates are negotiated between your and your employer. They may be included as part of your employment agreement or negotiated as a one-off as and when required. Check your employment agreement to see if you’re entitled to any penal rates for working extra hours.
Don’t have a copy of your employment agreement?
You will only get holiday pay as part of your regular pay if you are either a casual worker whose work is so irregular that it is impracticable to provide holidays, or you’re on a fixed term agreement (i.e. one that ends on a certain date because of a specific reason). If neither of these applies, then you should not be receiving holiday pay as part of your regular pay. You will receive holiday pay either when you take a holiday, or agree with your employer to cash up some of your holiday entitlement, or your employment ends. See our section on annual holidays.
The hours that you agree to in your employment agreement are generally the only hours that you need to be present at work for. However, some employment agreements have clauses which require that you perform extra duties or hours as required. Check your employment agreement to see if it contains such a clause. Any extra duties not covered in your employment agreement generally require your consent.
If you are unable to work the hours requested, talk to your employer to see if can come to another arrangement.
Don’t have a copy of your employment agreement?
Dress requirements, such as the type or standard of your clothes when at work, are a matter between the employer and employee. If there is an agreement about uniforms or dress requirements, both parties are required to keep to that agreement. An employer may have dress requirements to identify staff, for staff protection or to reflect the nature of the business. Check your employment agreement and any company policies for what these requirements are, and clarify with your employer if you are in doubt.
The cost of buying and cleaning the uniform is a matter for agreement between the employee and employer. However, your employer cannot make you buy the uniform from his store or insist you buy your uniform from a certain place.
Employers have to provide you with protective clothing if it is required to minimise your exposure to an identified hazard, and to instruct you on how and when to use it. It is their obligation to provide protective clothing - you are not required to pay for it.
See also Obey all reasonable orders.
Pay reviews and pay rises are matters for agreement between an employer and employee. Check your employment agreement to see if it has a clause about regular pay rises or pay reviews. Such clauses may be depend on you performing your work duties to a certain standard.
If you’re on the minimum wage rate, and the rate is increased, then your pay should be adjusted from the time the new rate takes effect. If you’re earning above the minimum wage, and the new minimum wage rate is above your wage rate, then your pay should be adjusted to at least the minimum wage rate.
Don’t have an employment agreement?
If you’re on an individual employment agreement, your employer can’t deduct money from your pay, without you signing an agreement in writing. The law protects the employee’s right to receive their pay from their employer without unauthorised deductions. The exception to this are things your employer is required to deduct by law, such as tax, student loan repayments and ACC. Your employer also can’t tell you how and where to spend your pay.