Key Takeaways
- Salary growth in 2025 shows a balance between modest structural increases and targeted compensation for specialized skills.
- Regional disparities and cost-of-living factors significantly influence the real value of salaries across New Zealand.
- Non-monetary benefits, flexible work arrangements, and strategic retention measures are increasingly crucial for attracting and retaining talent.
In 2025, the landscape of salaries in New Zealand presents a complex yet insightful picture for both employers and employees, shaped by a combination of macroeconomic trends, regional disparities, legislative shifts, and evolving workforce expectations. Understanding the intricacies of remuneration in New Zealand is essential for professionals, human resource managers, and job seekers who aim to navigate the competitive employment market effectively while making informed financial and career decisions. This comprehensive guide delves into the latest national benchmarks, sector-specific salary trends, cost-of-living adjustments, and emerging compensation strategies, offering a detailed framework to assess earning potential across industries, experience levels, and geographic regions.
Also, read our latest guide on the Top 10 Best Recruitment Agencies in New Zealand for 2025.
The national labour market continues to display notable growth in median and average earnings, reflecting a deliberate focus on retention strategies, targeted promotions, and strategic pay increases. For instance, median hourly earnings rose to $35.00 in the June 2025 quarter, marking a 4.3% increase compared to the previous year, with full-time employees reporting $36.53 per hour on average. These gains are mirrored in broader indicators such as average weekly earnings for full-time equivalent employees, which reached $1,679, underscoring the role of structured compensation planning in retaining high-value talent. Despite this positive momentum, variations in pay remain evident across industries, with sectors like technology, finance, and healthcare demonstrating sustained premium remuneration due to ongoing skills shortages and digital transformation pressures.
Regional disparities in salary are also a critical consideration for professionals and businesses alike. Major urban centres such as Auckland and Wellington offer significant income premiums driven by concentrated economic activity, high-value professional roles, and government or corporate hubs. For example, Wellington’s per capita income stands at $70,001, while Auckland leads in household earnings at $165,997. However, these elevated figures are counterbalanced by the higher cost of living in these cities, including housing, rental, and daily expenses, which often diminishes the real value of gross salaries. In contrast, regional cities such as Christchurch and Tauranga present more balanced trade-offs between income and affordability, making them increasingly attractive for professionals seeking discretionary income optimization and lifestyle benefits.
The evolving legislative environment has also had a profound impact on compensation structures. The introduction of the Equal Pay Amendment Act 2025 reshaped pay equity frameworks, tightening thresholds for claims and prioritizing comparators within the same employer, effectively reducing legal risk for organizations while encouraging proactive, voluntary measures for gender pay parity. Concurrently, statutory and voluntary wage floors, including the Adult Minimum Wage at $23.50 per hour and the Living Wage at $28.95 per hour, have provided both baseline and aspirational benchmarks for employee remuneration, influencing pay structures across low- to mid-income sectors.
In addition to monetary compensation, non-financial benefits have become essential components of competitive employment packages. Flexible and hybrid work arrangements, career development pathways, digital upskilling opportunities, and comprehensive well-being initiatives are increasingly leveraged by organizations to attract and retain top talent. The 2025 labour market has shown that even in a period of relative macroeconomic softening, employee expectations remain high, and strategic deployment of non-monetary incentives is vital for sustaining engagement and minimizing churn.
This guide also explores sector-specific insights, including finance and accounting, technology and transformation, construction and engineering, and healthcare, detailing typical salary ranges from entry-level to senior executive roles. For instance, finance professionals in Auckland may experience wide variance, with Chief Financial Officers earning anywhere from $167,569 to over $400,000 depending on organizational scale and complexity. Technology professionals with specialized skills in cloud computing, AI, and cybersecurity continue to command competitive premiums, reflecting the ongoing demand for digital transformation expertise.
By examining the interplay between national benchmarks, regional differences, cost-of-living considerations, sectoral demand, and legislative influence, this comprehensive guide provides an authoritative resource for understanding salaries in New Zealand for 2025. Whether planning a career move, benchmarking employee remuneration, or developing strategic compensation policies, this guide equips readers with a data-driven, holistic perspective on the current remuneration landscape, helping them make informed and strategic decisions in a dynamic employment environment.
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With over nine years of startup and business experience, and being highly involved in connecting with thousands of companies and startups, the 9cv9 team has listed some important learning points in this overview of Salaries in New Zealand for 2025: A Useful Guide.
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Salaries in New Zealand for 2025: A Useful Guide
- The Macroeconomic Environment Influencing 2025 Salaries
- Official National Salary Benchmarks (Stats NZ Data)
- Statutory and Voluntary Wage Floors in 2025
- Compensation Benchmarking by Industry and Experience Level
- Regional Salary Disparity and Cost of Living Context
- Regulatory Shifts and Strategic Hiring Trends for 2025
- 2026 Outlook
1. The Macroeconomic Environment Influencing 2025 Salaries
a. Economic Headwinds and Labour Market Slack
Economic Growth and Constraints
In 2025, New Zealand’s economy exhibited restrained growth, reflecting the lingering effects of previous economic tightening. The annual forecasted growth was modest, at just 1.0%, signaling a cautious recovery following periods of contraction. This subdued expansion, compounded by ongoing weak domestic demand, constrained organizations’ capacity to implement significant, across-the-board salary increases. Businesses remained wary of overextending budgets amidst uncertain economic conditions, prioritizing selective remuneration strategies over generalized pay hikes.
Labour Market Trends
The labour market in 2025 reflected the broader economic softness. By the June quarter, the official unemployment rate had risen to 5.2%, marking a slight quarterly increase of 0.1 percentage points and an annual rise of 0.5 percentage points. The broader underutilisation rate, encompassing underemployment and labour force disengagement, reached 12.8%, highlighting available labour that remained unutilized in the economy. Employment levels were largely static, with total hours worked declining slightly as firms adjusted staffing to align with softened demand. These trends indicated a moderation of generalized wage pressure across the workforce, particularly in sectors exposed to cyclical fluctuations.
Sector-Specific Wage Dynamics
Public Sector Wage Growth
Distinct variations emerged when examining wage inflation by sector. Public sector wages, measured through the Labour Cost Index (LCI), experienced robust growth of 4.2% for the year ending March 2025, significantly higher than the private sector’s 2.6% increase. This initial public sector momentum contributed meaningfully to national median earnings growth observed earlier in the year, providing a temporary uplift amid broader economic softness.
Private Sector and Overall Wage Moderation
By the year ending June 2025, overall LCI growth across all sectors had slowed to 2.4%, reflecting a rapid deceleration in wage inflation. The moderation across the economy signaled that firms were exercising caution in structural salary adjustments, balancing fiscal discipline with the need to maintain employee engagement and morale.
Structural vs. Individual Compensation Trends
A notable pattern in 2025 was the divergence between macro-level wage indicators and individual earnings growth. While the LCI, which tracks structural salary changes for consistent labour quality and quantity, increased by 2.4% annually to June 2025, Average Ordinary Time Hourly Earnings rose by 4.5% over the same period. This 2.1 percentage point differential underscores a strategic decoupling: while fixed pay scales were restrained due to economic caution, employers employed targeted mechanisms such as performance bonuses, retention increments, and promotional adjustments to reward high-value employees. This approach allowed organizations to maintain overall labour cost control while retaining critical talent in sectors facing skill shortages or heightened competition.
Salary Trends Matrix: Public vs. Private Sector (Annual Growth %)
| Sector | Year ended Mar 2025 | Year ended Jun 2025 |
|---|---|---|
| Public Sector LCI | 4.2 | 2.4 |
| Private Sector LCI | 2.6 | 2.4 |
| Average Earnings | 4.5 | 4.5 |
This matrix highlights the interplay between controlled structural pay increases and flexible, performance-based remuneration strategies that characterized New Zealand’s compensation environment in 2025.
Organizational Compensation Strategies
Targeted Reward Mechanisms
Despite economic headwinds, organizations strategically managed their compensation structures. The use of performance-based incentives, retention packages, and promotional pay adjustments enabled companies to protect their talent pool without committing to unsustainable structural pay growth. These mechanisms were especially critical in retaining skilled professionals in industries experiencing labour shortages, thereby supporting operational continuity and competitive positioning.
Conclusion: Salary Trends in a Modest Growth Economy
Overall, the salary environment in New Zealand for 2025 reflected a cautious equilibrium. Structural pay increases were moderated by economic constraints, yet individual employees often benefited from targeted rewards aimed at retention and performance recognition. This dual approach illustrates the evolving complexity of compensation management in a softening economic context, emphasizing strategic decision-making and sector-specific nuances in determining salary outcomes.
b. Wage Growth vs. Inflation: The Real Earnings Challenge
Economic Pressures on Household Incomes
In 2025, New Zealand workers faced a significant challenge in maintaining their purchasing power, as wage growth struggled to keep pace with persistent inflationary pressures. Annual Consumers Price Index (CPI) inflation was recorded at 2.7% for the year ending June 2025. In contrast, structural wage growth, as measured by the Labour Cost Index (LCI), registered an increase of only 2.4% over the same period. This disparity illustrates that general salary adjustments were insufficient to match the rising cost of living, resulting in real-term earnings erosion for the majority of employees, particularly those whose pay packages were not augmented through performance-based increments or promotional adjustments.
Impact of Essential Expenditure Inflation
The challenge of preserving real income was further exacerbated by the steep escalation of non-discretionary household costs, which constituted primary drivers of overall inflation. Local authority rates and payments surged by 12.2%, representing a significant increase in recurring household obligations. Concurrently, housing-related expenditures, particularly actual rental costs, rose by 3.2% over the same period. As these essential categories consume a large portion of household budgets, even moderate salary increases provided limited relief, effectively diminishing the real value of earnings.
Household Financial Stress and Workforce Implications
The combined effect of modest wage growth and rising essential expenditures translated into tangible financial pressures on households across New Zealand. Survey data highlights a proactive response among employees seeking improved compensation to offset the erosion of real income. Approximately 44% of workers indicated a readiness to re-enter salary negotiations if their pay did not reflect rising costs in 2025. Furthermore, specialized professionals, representing around 11% of the workforce, asserted that a 20% increase would be required to align remuneration with their skills and expertise.
This high level of salary expectation underscores the tension between employees’ cost-of-living concerns and organizational compensation strategies. Despite a general softening of labour market conditions, the potential for increased turnover remains a prominent risk, as employees weigh their financial needs against opportunities elsewhere. Employers, therefore, are compelled to balance cautious structural pay management with targeted strategies such as retention bonuses, skill-based pay adjustments, and performance-linked incentives to mitigate attrition and maintain workforce stability.
Comparative Analysis of Wage Growth Versus Inflation (Year to June 2025)
| Indicator | Annual Growth Rate (%) |
|---|---|
| Labour Cost Index (Structural Wages) | 2.4 |
| Average Ordinary Time Hourly Earnings | 4.5 |
| Consumers Price Index (CPI) | 2.7 |
| Local Authority Rates & Payments | 12.2 |
| Housing Rentals | 3.2 |
This table emphasizes the real-term gap between structural wage growth and inflation, highlighting the financial pressures facing employees. It also underscores the critical importance of targeted compensation mechanisms for maintaining employee satisfaction and retention.
Strategic Implications for Employers
Employers in 2025 are navigating a delicate balance: controlling structural wage costs while addressing the financial concerns of their workforce. The data suggests that organizations that fail to recognize the impact of inflation on real earnings risk elevated turnover, especially among skilled and specialized employees. By integrating strategic pay adjustments, performance-based incentives, and retention-focused remuneration practices, employers can effectively mitigate financial stress on employees while maintaining operational efficiency in a modest growth economy.
2. Official National Salary Benchmarks (Stats NZ Data)
a. National Median and Average Earnings (June 2025 Quarter)
Understanding Compensation Trends
The official data released by Stats NZ for the June 2025 quarter provides a comprehensive view of average earnings in New Zealand, offering a benchmark for evaluating national salary trends. These statistics are critical for both employers and employees to assess compensation dynamics and make informed decisions regarding remuneration, career planning, and wage negotiations.
Median and Average Hourly Earnings
Analysis of hourly earnings indicates a significant upward trajectory in median wages. For the June 2025 quarter, the median hourly wage increased by $1.44, representing a 4.3% annual growth, reaching $35.00 per hour. Full-time employees reported a slightly higher median of $36.53 per hour, also reflecting a 4.3% increase over the prior year. Part-time employees saw their median hourly earnings rise to $27.50, though this change was considered statistically modest.
These figures demonstrate that while structural wage growth is moderate, employees across different employment types are experiencing consistent, incremental increases in hourly compensation. This trend reflects ongoing efforts by organizations to balance fiscal responsibility with the need to retain skilled labour in a competitive market.
Weekly Earnings and Full-Time Equivalents
Median weekly earnings mirrored the growth seen in hourly wages. For the June 2025 quarter, median weekly earnings rose by $37, equivalent to a 2.8% increase, reaching $1,380. This steady increase in weekly compensation highlights the gradual improvement in employee earnings, reinforcing the role of national salary benchmarks as a reliable indicator of economic and labour market health.
Broader Average Earnings Trends
Complementary insights from the Quarterly Employment Survey (QES) provide additional perspective on compensation patterns. Average ordinary time hourly earnings for the year ending June 2025 reached $43.39, up from $41.52 in the previous year. In parallel, the average weekly earnings for full-time equivalent employees increased to $1,679. These figures suggest that while median earnings provide a central point for income distribution, average earnings capture broader variations, including higher-paid employees and sector-specific pay differentials, offering a more nuanced understanding of remuneration trends.
Salary Benchmarks Overview (June 2025 Quarter)
| Indicator | Value | Annual Growth Rate (%) |
|---|---|---|
| Median Hourly Earnings (All Employees) | $35.00 | 4.3 |
| Median Hourly Earnings (Full-Time) | $36.53 | 4.3 |
| Median Hourly Earnings (Part-Time) | $27.50 | Not Statistically Significant |
| Median Weekly Earnings | $1,380 | 2.8 |
| Average Ordinary Time Hourly Earnings | $43.39 | 4.5 |
| Average Weekly Earnings (FTE) | $1,679 | 4.0 |
This table provides a clear comparative perspective on both median and average earnings, emphasizing the incremental growth experienced across different employment categories in New Zealand during 2025.
Implications for Employers and Employees
For employers, these benchmarks serve as essential tools for structuring competitive compensation packages, evaluating pay equity, and aligning remuneration with national trends. For employees, understanding median and average earnings allows for informed salary negotiations and career planning, particularly in industries where wages are rising at a faster pace than structural LCI growth.
b. Gender Pay Gap Dynamics
Overview of Gender Pay Trends
In 2025, the New Zealand labour market experienced a notable contraction in the gender pay gap, reflecting both sectoral wage growth patterns and broader policy developments. The gap decreased by 3.0 percentage points, moving from 8.2% in the June 2024 quarter to 5.2% in the June 2025 quarter. This reduction signifies tangible progress in addressing wage disparities between male and female employees across the national workforce.
Drivers of Gender Pay Gap Reduction
The narrowing of the gap was primarily driven by differential earnings growth between men and women. Median weekly earnings for women rose by 4.3%, reaching $1,247, while men’s median weekly earnings increased by a more modest 2.6%, reaching $1,500. This accelerated growth in women’s earnings reflects successful targeted bargaining efforts, particularly in sectors with high female representation and within the public sector, which experienced above-average wage growth during the first half of 2025. Such concentrated compensation adjustments were instrumental in reducing the statistical pay gap.
Legislative and Structural Considerations
The improvement in the gender pay gap coincided with significant legislative changes impacting pay equity claims. The Equal Pay Amendment Act 2025 introduced stricter criteria for raising and pursuing pay equity claims, effectively tightening legal pathways for systemic review. This juxtaposition presents a nuanced dynamic: while current data demonstrates measurable progress in closing the pay gap, the structural barriers imposed by legislation may limit future opportunities for judicial or mediated compensation adjustments, potentially slowing long-term convergence.
National Labour Market Indicators
A broader examination of 2025 labour market statistics provides context for these trends, illustrating the interplay between wage growth, inflation, and employment conditions. Key indicators include median and average earnings, annual wage rate increases, inflationary pressures, unemployment rates, and statutory wage floors.
Labour Market Statistics Overview (Year Ended June 2025)
| Metric | Latest Value (June 2025) | Annual Change | Contextual Notes |
|---|---|---|---|
| Median Hourly Earnings (Wages/Salaries) | $35.00 | +4.3% | Reflects central tendency of employee pay |
| Average Ordinary Time Hourly Earnings | $43.39 | +4.5% | Captures broader variations including higher-paid FTEs |
| Annual Wage Rate Increase (LCI) | 2.4% | N/A | Measures structural labour cost inflation |
| Annual CPI Inflation | 2.7% | N/A | Represents consumer price increases and cost-of-living pressures |
| Unemployment Rate (Seasonally Adjusted) | 5.2% | +0.5 ppt | Indicates available labour and market slack |
| Gender Pay Gap | 5.2% | -3.0 ppt | Ratio of median male to female earnings |
| Adult Minimum Wage (April 2025) | $23.50 per hour | N/A | Establishes statutory minimum earnings |
Strategic Implications for Employers
Employers are navigating a complex labour market environment where wage adjustments, gender equity considerations, and cost-of-living pressures intersect. The reduction in the gender pay gap highlights the effectiveness of targeted wage interventions, but legislative constraints suggest that future pay equity initiatives may require more strategic planning. Organizations must balance competitive compensation practices with compliance requirements, ensuring equitable pay structures while maintaining financial sustainability.
3. Statutory and Voluntary Wage Floors in 2025
a. The New Minimum Wage Rate
Foundations of Wage Structures
In any comprehensive salary analysis, understanding statutory and recommended wage floors is essential. These benchmarks establish the minimum remuneration thresholds that organizations must adhere to, ensuring basic financial security for employees across New Zealand. Wage floors not only influence low-income earners but also shape broader compensation strategies, particularly in industries where entry-level or junior roles dominate.
The New Minimum Wage Rate for 2025
Effective 1 April 2025, New Zealand implemented an increase in its statutory minimum wage, marking a significant adjustment for the lowest-paid segments of the workforce. The Adult Minimum Wage rose from $23.15 to $23.50 per hour, while the Starting-Out and Training Minimum Wage was adjusted from $18.52 to $18.80 per hour. These rates are calculated before tax and any lawful deductions, forming the legally mandated floor for employee remuneration.
Impact on the Workforce
This increase carries tangible benefits for low-wage workers. It is estimated that approximately 141,900 employees who previously earned between the old and new minimum wage thresholds will experience a direct pay rise. For a full-time employee working 40 hours per week, the adjustment to $23.50 per hour translates into an additional $14 per week before tax, contributing to enhanced household income stability.
Comparative Overview of Minimum Wage Rates
| Wage Type | Previous Rate (Pre-April 2025) | New Rate (From April 2025) | Hourly Increase | Annualized Weekly Impact (40 hours/week) |
|---|---|---|---|---|
| Adult Minimum Wage | $23.15 | $23.50 | $0.35 | $14 |
| Starting-Out Minimum Wage | $18.52 | $18.80 | $0.28 | $11.20 |
| Training Minimum Wage | $18.52 | $18.80 | $0.28 | $11.20 |
Broader Implications for Employers and Policy
The adjustment of statutory wage floors serves multiple purposes. From a policy perspective, it supports social equity and mitigates the financial strain on low-income households, particularly in a climate of rising living costs. For employers, these changes necessitate updates to payroll systems, budget planning, and compensation structures to ensure compliance. Organizations employing a high proportion of entry-level workers may experience a notable impact on overall wage bills, emphasizing the need for strategic workforce management.
b. The Living Wage Movement
Overview of the Living Wage Concept
Distinct from statutory minimum wages, the Living Wage in New Zealand represents a voluntary remuneration benchmark designed to provide workers with sufficient income to meet essential living costs while maintaining a reasonable quality of life. It extends beyond mere compliance, embodying a philosophy that seeks to ensure employees can achieve financial stability, health, and personal well-being.
Living Wage Rate Adjustments in 2025
Effective 1 September 2025, the New Zealand Living Wage rate will increase to $28.95 per hour. This represents a substantial premium over the statutory Adult Minimum Wage, which stands at $23.50 per hour. The $5.45 per hour differential highlights the Living Wage’s emphasis on enabling households to cover essential expenditures, save for contingencies, and participate in social and recreational activities, thereby fostering broader societal and economic benefits.
Impact on Workforce Compensation and Employee Retention
For employers, particularly in sectors characterized by high turnover and heavy reliance on entry-level staff—such as hospitality, retail, and logistics—the adoption of the Living Wage constitutes a strategic compensation tool. Paying above statutory minimums, although voluntary, offers several advantages:
- Attracting higher-quality applicants who value financial stability and security
- Reducing turnover and the associated hidden costs of recruitment, onboarding, and training
- Enhancing employee engagement and productivity through improved morale
- Signaling corporate commitment to workforce wellbeing, which strengthens employer branding
Comparative Analysis: Minimum Wage vs. Living Wage 2025
| Compensation Metric | Hourly Rate ($) | Differential ($) | Strategic Implication |
|---|---|---|---|
| Adult Minimum Wage (Statutory) | 23.50 | – | Legal baseline for remuneration |
| Living Wage (Voluntary) | 28.95 | +5.45 | Supports financial stability and retention strategies |
Economic and Social Significance
The adoption of the Living Wage extends beyond individual financial relief. It encourages broader economic stability by increasing disposable income for low- and moderate-income workers, which can stimulate consumption and local economic activity. For organizations, offering the Living Wage is increasingly recognized as a socially responsible practice, aligning business operations with evolving workforce expectations and societal norms.
In conclusion, while statutory wage floors establish the baseline for employee compensation, the Living Wage serves as a voluntary, aspirational standard that can enhance employee wellbeing, retention, and organizational reputation. For New Zealand employers in 2025, integrating Living Wage practices into compensation strategies is both a social and economic consideration that directly addresses cost-of-living pressures and workforce stability.
4. Compensation Benchmarking by Industry and Experience Level
a. Finance and Accounting Sector Salaries (2025)
Overview of Industry-Specific Salary Structures
A comprehensive understanding of salaries in New Zealand requires an examination of compensation trends across industries and experience levels. Recruitment specialists and sectoral salary guides provide critical benchmarks, illustrating how specific skills and experience can command substantial premiums, often independent of broader economic slowdowns. These benchmarks enable employers to structure competitive remuneration packages and allow employees to make informed career and negotiation decisions.
Finance and Accounting Sector Salaries
Entry-Level Transactional Roles
The finance and accounting sector demonstrates a hierarchical salary structure, reflecting the complexity and responsibility associated with each role. Entry-level transactional positions, such as Accounts Payable Officers, typically start at a gross annual salary of $65,000 at the 25th percentile. Professionals with above-average experience or specialized skills can reach the 75th percentile, earning up to $85,000 per year. Accounts Receivable Officers exhibit similar compensation ranges, emphasizing parity in transactional functions within finance.
Technical and Core Accounting Roles
Advancing into technical accounting roles yields substantial salary growth. Financial Accountants, representing core accounting functions, generally command a starting salary of approximately $100,000 (25th percentile). Mid-level professionals reach a median salary of $115,000, while experienced specialists earn up to $130,000 annually (75th percentile). This progression underscores the premium associated with technical expertise, professional certification, and experience in managing core financial operations.
Strategic and Managerial Roles
Strategic roles, focusing on financial analysis, internal control, and management reporting, attract higher remuneration due to their impact on organizational decision-making.
- Management Accountant: Salaries begin at $120,000 (25th percentile), with the median at $135,000, and high-performing professionals earning up to $150,000 (75th percentile). These positions demand advanced analytical capabilities, proficiency in budgeting and forecasting, and the ability to influence strategic financial decisions.
- Senior Management Accountant: Senior roles in management accounting reflect the highest compensation within the functional hierarchy. Entry-level senior accountants start at $130,000, progressing to a median of $155,000, with exceptional professionals commanding up to $175,000. These roles combine strategic oversight, team management, and advanced financial governance responsibilities, justifying the significant salary premiums.
Salary Benchmark Matrix: Finance and Accounting Sector (2025)
| Role | 25th Percentile ($) | 50th Percentile ($) | 75th Percentile ($) |
|---|---|---|---|
| Accounts Payable Officer | 65,000 | 75,000 | 85,000 |
| Accounts Receivable Officer | 65,000 | 75,000 | 85,000 |
| Financial Accountant | 100,000 | 115,000 | 130,000 |
| Management Accountant | 120,000 | 135,000 | 150,000 |
| Senior Management Accountant | 130,000 | 155,000 | 175,000 |
Observations and Strategic Insights
The data highlights a consistent increase in compensation with progression from entry-level transactional roles to strategic managerial positions. Employers in the finance sector must consider these benchmarks when designing pay scales to attract and retain talent, particularly in areas requiring specialized expertise or strategic oversight. Employees, in turn, can use these figures to assess career progression opportunities and negotiate salaries aligned with market expectations.
b. Executive Compensation: Chief Financial Officer (CFO) Ranges
Overview of Executive Pay Structures
In New Zealand, senior executive remuneration, particularly for roles such as Chief Financial Officer (CFO), exhibits the greatest variation across industries and regions. Compensation is heavily influenced by the size and complexity of the employing organization, the sector in which it operates, and regional economic dynamics. Average national figures provide a baseline but often fail to capture the significant premiums associated with large corporate entities, multinational operations, or financial hubs.
National CFO Salary Ranges
Across the country, CFO salaries demonstrate considerable breadth. National estimates place the average range between $167,569 and $285,739 annually. However, these figures primarily represent median-level remuneration and do not reflect the upper echelons of compensation for executives in highly complex or strategically critical roles. High-performing CFOs, particularly those in multinational corporations or investment-focused enterprises, can earn well beyond the national average, highlighting the skewed nature of executive pay structures.
Regional Variations and Premium Compensation Hubs
Geographical factors play a pivotal role in shaping executive compensation. Regional salary trends reflect local economic concentrations, industry presence, and organizational scale:
- Auckland: As New Zealand’s primary financial and corporate hub, Auckland commands the highest CFO salaries. Executives managing complex corporate structures, financial institutions, or investment banking portfolios typically earn between $200,000 and over $400,000. This premium is driven by the density of high-value corporate activity and the competition for top-tier executive talent.
- Wellington: Benefiting from a concentration of government agencies, regulatory bodies, and associated service sectors, Wellington CFOs generally receive salaries ranging from $180,000 to $350,000+. These roles often combine strategic oversight with regulatory compliance responsibilities, justifying the higher remuneration relative to smaller regional centers.
- Christchurch: As a growing commercial hub, Christchurch offers slightly lower executive compensation, with typical CFO salaries ranging from $160,000 to $300,000. The region’s developing corporate ecosystem and smaller scale of operations contribute to a more moderate salary range.
Implications of Compensation Disparities
The significant divergence between national median CFO salaries and the high-end compensation observed in Auckland underscores a defining feature of New Zealand’s executive labour market: the concentration of specialized, high-value roles within major economic hubs. Agglomeration effects—where dense networks of financial and corporate institutions elevate demand for senior management expertise—create substantial premiums for executives, contributing to a widening earnings gap between top-tier management and the broader workforce, particularly in regional areas.
CFO Salary Matrix by Region (2025)
| Region | Typical Salary Range ($) | Upper-End Premium ($) | Key Drivers |
|---|---|---|---|
| Auckland | 200,000 – 400,000+ | 400,000+ | Corporate complexity, investment banking, high competition for talent |
| Wellington | 180,000 – 350,000+ | 350,000+ | Government and regulatory sector influence, strategic oversight roles |
| Christchurch | 160,000 – 300,000 | 300,000 | Developing commercial hub, smaller organizational scale |
Strategic Considerations for Employers and Executives
For organizations, understanding these regional and role-based salary differentials is critical when designing competitive executive remuneration packages. For aspiring or current CFOs, awareness of these benchmarks can guide career decisions, negotiation strategies, and geographic mobility considerations.
c. Technology and Specialized Skills
Overview of the Technology Sector
In 2025, New Zealand’s technology and digital transformation sector continues to experience rapid evolution, fueled by accelerated adoption of artificial intelligence, advanced analytics, and enterprise-wide digital initiatives. Unlike broader economic trends that have moderated wage growth in other sectors, technology roles demonstrate robust salary expansion due to sustained demand for specialized expertise. Organizations across industries recognize the strategic value of technology professionals, positioning them as critical drivers of innovation and competitive advantage.
High-Priority Specializations Driving Premium Compensation
Certain technical domains have emerged as particularly lucrative due to their scarcity and strategic importance:
- Architecture and Infrastructure: Professionals designing scalable and resilient enterprise systems command substantial premiums. Salary growth reflects both technical complexity and the direct impact on business continuity.
- Cloud Computing and DevOps: Expertise in cloud architecture, deployment, and operational automation is in high demand, with employers offering competitive packages to attract candidates capable of maintaining flexible, scalable infrastructure.
- Cybersecurity: Rising threats to organizational data and systems have elevated the importance of cybersecurity specialists. Salaries are augmented by the need for both defensive and proactive security capabilities across multiple platforms.
- Artificial Intelligence and Machine Learning: The integration of AI and machine learning into business processes has created a specialized talent market. Professionals with experience in algorithm development, data modeling, and AI system deployment command above-average compensation, reflecting their role in driving innovation and efficiency.
Market Forces and Compensation Drivers
The intense competition for these skill sets has compelled employers to offer comprehensive value propositions beyond base salaries. Key factors influencing compensation packages include:
- Competitive base salaries aligned with market scarcity of specialized skills
- Flexible working arrangements, including remote and hybrid options
- Structured career progression pathways emphasizing professional development and leadership opportunities
- Performance-based incentives and retention bonuses to secure high-demand talent
Salary Benchmark Matrix for Key Technology Roles (2025)
| Role | 25th Percentile ($) | 50th Percentile ($) | 75th Percentile ($) | Key Skills |
|---|---|---|---|---|
| Solutions Architect | 120,000 | 140,000 | 160,000 | Enterprise architecture, system design |
| Cloud/DevOps Engineer | 110,000 | 130,000 | 150,000 | Cloud deployment, automation, CI/CD |
| Cybersecurity Specialist | 100,000 | 120,000 | 145,000 | Network security, risk assessment, compliance |
| AI/ML Engineer | 125,000 | 150,000 | 175,000 | Machine learning, data modeling, algorithm development |
Strategic Implications for Employers
Organizations must adopt proactive strategies to attract and retain talent in this sector. High-demand technical skills combined with digital transformation imperatives make compensation a key lever for talent acquisition. Companies offering competitive remuneration, career growth opportunities, and flexible work arrangements are better positioned to build future-ready teams capable of navigating ongoing technological change.
d. Overview of Other Key Industries
Construction and Engineering Sector
The construction and engineering industries in New Zealand continue to experience robust salary growth, driven by sustained demand for infrastructure development across both private and public sectors. Specialized roles—including civil, structural, and mechanical engineers, as well as project managers and senior construction professionals—remain highly sought after. Regional factors heavily influence remuneration levels, with metropolitan and high-activity areas offering premium salaries reflective of complex, large-scale projects. Organizations increasingly leverage competitive pay packages, project-based incentives, and skill development opportunities to secure and retain top talent.
Healthcare Sector
Healthcare remains a critical domain experiencing persistent talent shortages, particularly in nursing, specialized medical practice, and allied health professions. Salary packages are designed to be competitive, frequently supplemented with benefits emphasizing flexibility, wellbeing, and career progression. The scarcity of qualified professionals in key areas has intensified wage pressures, compelling hospitals and private healthcare providers to adopt holistic compensation strategies, including retention bonuses, professional development allowances, and flexible scheduling arrangements.
Cross-Industry Salary Benchmarking
Recruitment specialists provide detailed salary guides that highlight variations by experience, specialization, and geographic location. These benchmarks are essential for both employers seeking to attract talent and employees aiming to understand market value.
Salary Benchmark Matrix: Finance, Accounting, and Executive Roles (2025)
| Position Title | 25th Percentile (Developing) | 50th Percentile (Average) | 75th Percentile (Senior/Specialized) | Location/Context | Source Guide |
|---|---|---|---|---|---|
| Accounts Payable Officer | 65,000 | 75,000 | 85,000 | General Market | Robert Half |
| Financial Accountant | 100,000 | 115,000 | 130,000 | General Market | Robert Half |
| Management Accountant | 120,000 | 135,000 | 150,000 | General Market | Robert Half |
| Senior Management Accountant | 130,000 | 155,000 | 175,000 | General Market | Robert Half |
| Chief Financial Officer (CFO) | 200,000 (Auckland Entry) | 285,739 (ERI Average) | 400,000+ (Auckland High End) | Regional Variance | FinanceJobs/ERI |
Key Observations and Strategic Insights
- Skill Scarcity Drives Salary Growth: Both the construction and healthcare sectors illustrate the direct correlation between talent scarcity and compensation growth. Organizations must offer competitive packages to secure skilled professionals.
- Regional Salary Variations: Major urban centers and regions with concentrated industry activity typically offer premium salaries, reflecting project scale, operational complexity, and competition for talent.
- Executive and Specialized Roles: CFOs and senior finance professionals continue to command substantial compensation, particularly in Auckland, highlighting the concentration of high-value corporate functions in key economic hubs.
- Holistic Compensation Strategies: Employers increasingly combine base salaries with supplementary benefits such as career development, flexible working, and retention bonuses to maintain workforce stability.
This analysis underscores that, beyond technology and finance, sectors such as construction and healthcare continue to experience upward salary pressures, shaped by skill scarcity, regional activity, and strategic importance to national economic development.
5. Regional Salary Disparity and Cost of Living Context
a. Per Capita and Household Income Comparison (2025)
Overview of Regional Compensation Variations
Analyzing salaries in New Zealand requires more than reviewing gross income figures. Regional economic conditions, housing costs, and living expenses critically influence the real value of compensation. A high nominal salary in one area may not translate into increased purchasing power if regional living costs are significantly elevated. Understanding these dynamics is essential for both employers designing competitive remuneration packages and employees evaluating career opportunities.
Per Capita and Household Income Patterns
Nationally, the average per capita income in 2025 reached $51,971, while the average household income stood at $135,079. However, regional disparities reveal pronounced variations linked to local economic activity, industry concentrations, and demographic trends.
Wellington City
- Wellington recorded the highest per capita income in the nation at $70,001, representing a premium of 34.7% above the national average.
- This elevated income reflects the concentration of high-paying roles within government, public policy, professional services, and regulatory functions.
- The higher per capita earnings indicate both specialized skill demand and the premium associated with the city’s status as the national administrative center.
Auckland Metropolitan Area
- Auckland led in household income, with the average household earning $165,997 in 2025.
- The city’s substantial average household earnings are driven by a high proportion of dual-income households, particularly in professional, corporate, and finance sectors.
- Despite its high base, Auckland’s household income growth of 2.3% lagged behind Tauranga City’s 3.5% growth, highlighting nuanced regional dynamics where smaller cities may outpace major urban centers in relative income expansion.
Christchurch City
- Christchurch’s per capita income was $50,172, slightly below the national benchmark.
- Despite lower absolute income levels, the city experienced robust growth of 3.7% in 2025, outpacing national per capita income growth of 3.3% and Wellington’s 2.2%.
- This growth trajectory reflects the region’s economic recovery, development of commercial infrastructure, and rising demand for skilled professionals.
Regional Income and Growth Matrix (2025)
| Region | Per Capita Income ($) | Household Income ($) | Annual Income Growth (%) | Key Drivers |
|---|---|---|---|---|
| Wellington City | 70,001 | 140,000 (approx.) | 2.2 | High concentration of government, professional, and regulatory roles |
| Auckland | 65,000 (approx.) | 165,997 | 2.3 | Dual-income households, finance, corporate, and professional services |
| Christchurch | 50,172 | 130,000 (approx.) | 3.7 | Regional economic development, infrastructure growth, rising demand for skilled workers |
| Tauranga | 48,500 (approx.) | 125,000 (approx.) | 3.5 | Growing commercial base, smaller city income growth outpacing major centers |
Cost of Living Considerations
The impact of regional salary differences is further influenced by housing costs, local utilities, transportation, and other essential expenditures:
- Auckland remains the highest-cost region, where housing affordability and general living expenses reduce the net value of higher salaries.
- Wellington, despite elevated per capita earnings, faces similar cost pressures due to housing demand and urban density.
- Christchurch and Tauranga offer relatively lower living costs, enhancing the real purchasing power of salaries, particularly for mid-level and specialized professionals.
b. The Cost of Living vs. Salary Premium
Urban Salary Advantages and Cost Pressures
While gross salaries in major New Zealand cities often exceed those in regional areas, the higher income is frequently counterbalanced by elevated living expenses. In 2025, Wellington City registers the highest Cost of Living (COL) Index at 68.3, reflecting significant housing, utilities, and transportation costs. Auckland follows closely with a COL Index of 65.9, while Christchurch remains comparatively affordable at 59.8. These differences indicate that nominal salary premiums in metropolitan centers may not directly translate into proportionally higher purchasing power.
Housing and Rental Dynamics
Housing costs represent a substantial portion of urban living expenses and are a key determinant of real earnings. The average monthly rent for a one-bedroom apartment in 2025 is estimated at:
- Auckland: NZD 2,215
- Wellington: NZD 2,500
- Christchurch: NZD 2,300
These figures illustrate that Wellington, despite high salaries, imposes the greatest financial burden on residents, primarily due to rental premiums, while Christchurch remains a more cost-effective option, offering greater disposable income for professionals earning moderate to high salaries.
Impact on Regional Migration and Salary Adjustments
The rising cost-of-living pressures in metropolitan hubs have catalyzed a noticeable migration trend, with professionals relocating to regional centers for lifestyle benefits, reduced commuting times, and comparatively lower expenses. This internal migration has produced consequential shifts in regional compensation practices:
- Historically, regional salaries carried a discount of NZD 10,000 to 20,000 relative to Auckland and Wellington.
- In 2025, talent shortages in regional centers have compelled employers to offer competitive packages, narrowing the salary gap and, in some cases, matching metropolitan remuneration for specialized skills.
Regional Salary Adjustment Matrix
| Region | Average Monthly Rent (1-Bedroom, NZD) | Cost of Living Index | Regional Salary Premium Adjustments |
|---|---|---|---|
| Auckland | 2,215 | 65.9 | High nominal salaries offset by elevated living costs |
| Wellington | 2,500 | 68.3 | Premium salaries largely absorbed by rental and essential expenses |
| Christchurch | 2,300 | 59.8 | Moderate salaries with enhanced real purchasing power, attracting inward migration |
Strategic Implications for Employers
- Regional employers must continue to offer competitive salaries and benefits to retain talent amid growing migration from major urban centers.
- Salary strategies should integrate cost-of-living indices to ensure that compensation packages provide adequate real value.
- Organizations in metropolitan areas may need to augment salary packages with housing allowances, relocation support, or flexible working arrangements to offset the high cost of living.
c. Housing Affordability Metrics (The True Cost of Living)
Overview of Housing Challenges
Housing affordability continues to be the most significant factor limiting the real value of salaries in New Zealand. While national indicators show modest improvements, the cost of home ownership remains a substantial financial burden for many households. In 2025, the national average house value-to-income multiple decreased slightly to 6.5, improving from 6.8 in 2024. This adjustment suggests incremental progress in affordability, yet the overall financial strain of purchasing and maintaining a home persists as a central economic challenge.
Mortgage Servicing and Household Expenditure
For the average household, servicing a 20-year mortgage with a 20% deposit consumes approximately 39.3% of gross household income. This proportion reflects nearly two-fifths of total earnings dedicated solely to mortgage repayment, underscoring housing as the dominant household expenditure. Even under the more generous lending thresholds permitted by New Zealand banks—where mortgage repayments may constitute up to 40% of gross income—homeownership represents a substantial economic commitment.
Strategic Implications of Regional Income and Living Costs
The interaction between regional income premiums and cost-of-living metrics significantly affects the real purchasing power of salaries:
- Wellington: Despite commanding the highest per capita income of $70,001, Wellington’s elevated Cost of Living Index of 68.3, combined with high rental and mortgage pressures, reduces discretionary income.
- Christchurch: Lower per capita earnings ($50,172) are offset by a more affordable COL Index of 59.8. With a narrowing regional salary gap driven by local talent demand, residents often enjoy a higher proportion of disposable income.
- Auckland: Household incomes are the highest nationally at $165,997, but the high cost of living and average rent of NZD 2,215 limit the relative increase in real earnings.
For professionals focused on capital accumulation, savings, or discretionary spending, regional centers such as Christchurch and other emerging urban areas may offer superior real salary value compared to the major metropolitan hubs, despite nominally lower wages.
Regional Income and Housing Cost Comparison Matrix (2025)
| City/Region | Per Capita Income ($) | Average Household Income ($) | Cost of Living Index | Average 1BR Rent (NZD/month) |
|---|---|---|---|---|
| Wellington City | 70,001 | N/A | 68.3 (Highest) | 2,500 |
| Auckland | N/A | 165,997 (Highest) | 65.9 | 2,215 |
| Christchurch City | 50,172 | 116,863 | 59.8 (Lowest of Majors) | 2,300 |
| New Zealand (National Average) | 51,971 | 135,079 (Estimated) | N/A | N/A |
While nominal salaries in major cities appear attractive, the high cost of living—particularly housing—substantially diminishes real earnings. Regional centers with more moderate costs and competitive salary adjustments increasingly offer superior real purchasing power, making location a critical consideration for employees seeking to maximize financial wellbeing in 2025.
6. Regulatory Shifts and Strategic Hiring Trends for 2025
a. The Equal Pay Amendment Act 2025: A Fundamental Shift
Overview of Legislative Impact on Compensation
The year 2025 witnessed critical legislative changes that reshaped New Zealand’s pay equity landscape. These regulatory shifts, coupled with evolving employee expectations, compelled organizations to reevaluate and strategically adjust their compensation, retention, and talent management frameworks.
The Equal Pay Amendment Act 2025: Redefining Pay Equity
Enacted with urgency on 6 May 2025, the Equal Pay Amendment Act represents a transformative adjustment to the country’s legal approach to gender pay parity. The government emphasized that the legislation aims to address only “genuine pay equity issues,” effectively narrowing the legal pathways available for claims.
Key Provisions and Their Implications
- Higher Eligibility Thresholds:
Claimants are now required to demonstrate that the workforce consists of at least 70% female employees maintained for ten consecutive years. This represents a substantial increase from the previous threshold of 60% at any time, significantly restricting the pool of eligible pay equity claims. - Comparator Role Restrictions:
The Act mandates that comparisons be made primarily within the same employer, excluding cross-industry comparisons. Employers are granted authority to discontinue claims early if the roles are determined to be “not the same or substantially similar” to the comparator, thereby limiting potential claim escalations. - Retrospective and Prospective Limitations:
All ongoing pay equity claims that were unresolved at the time of enactment were immediately discontinued. Furthermore, claims for the same workforce and roles cannot be initiated for ten years following settlement, and previous review clauses are rendered unenforceable.
Strategic Consequences for Employers
The cumulative effect of these legislative changes is a marked reduction in legal exposure related to systemic pay equity claims. Employers now face lower risk and reduced potential liabilities for unresolved or future claims. However, the onus for achieving gender pay parity shifts increasingly towards voluntary corporate initiatives, internal audits, and transparent reporting. Organizations must now proactively demonstrate commitment to equitable pay through structured internal policies, strategic compensation planning, and voluntary disclosure practices rather than relying on legal enforcement mechanisms.
Emerging Talent and Compensation Strategies in Response
Beyond the legal landscape, organizations in 2025 are navigating heightened employee expectations for equitable, performance-linked compensation. Strategic initiatives include:
- Internal Pay Audits: Regular assessment of gender-based pay differentials to identify and rectify disparities before they escalate into disputes.
- Performance-Linked Incentives: Enhancing retention by using merit-based bonuses and targeted compensation adjustments.
- Transparent Communication: Demonstrating commitment to pay equity and fairness through internal reporting and employee engagement programs.
- Retention of Critical Talent: Leveraging competitive salary packages and tailored benefits to retain specialized roles in high-demand sectors, mitigating turnover risks in a tightening talent market.
Table 1: Impact of Equal Pay Amendment Act 2025 on Pay Equity Claims
| Provision | Previous Standard | New Standard | Implication |
|---|---|---|---|
| Workforce Composition | ≥60% female at any time | ≥70% female for 10 consecutive years | Reduces eligible claimants |
| Comparator Flexibility | Same or similar roles across sectors allowed | Must be internal; cross-industry excluded | Limits scope for claims |
| Ongoing Claims | Continued until resolution | Immediate discontinuation if unsettled | Legal risk reduced for employers |
| Future Claims | No restriction | Cannot refile for same workforce for 10 years | Long-term claim limitation |
| Review Clauses | Enforceable | No longer enforceable | Eliminates potential post-settlement claims |
The Equal Pay Amendment Act 2025 fundamentally alters the landscape of gender pay equity in New Zealand. Employers are now positioned to focus on proactive, voluntary strategies to ensure equitable pay, while the legal mechanism for systemic claims has been substantially narrowed. This shift reinforces the importance of strategic internal auditing, transparent reporting, and targeted retention strategies in maintaining competitive and equitable compensation frameworks.
b. Workforce Priorities and Talent Retention in a Softening Market
Labour Market Context and Employee Expectations
In 2025, the New Zealand labour market exhibited signs of softening, with the official unemployment rate recorded at 5.2%. Despite this slack, employee expectations for remuneration and workplace benefits remained elevated, reflecting a persistent competitive landscape for high-value skills. Notably, 62% of businesses planned to implement salary increases, even though only 57% of employees anticipated receiving one. This disparity underscores the ongoing pressure on organizations to align compensation strategies with evolving workforce expectations while navigating economic constraints.
Strategic Integration of Non-Monetary Compensation
Compensation planning in 2025 extended beyond salary alone, incorporating sophisticated non-monetary components to attract and retain critical talent. Flexible work arrangements, including hybrid and remote options, emerged as a pivotal factor, with 51% of employees indicating it as a top priority. Beyond flexibility, employers increasingly emphasized comprehensive support structures encompassing career progression frameworks, digital tools to enhance productivity, and well-being initiatives to foster engagement and loyalty.
The Role of Real Wage Stagnation
Structural wage growth, as indicated by the Labour Cost Index (2.4%), lagged behind annual CPI inflation (2.7%), creating marginal real-wage erosion. This gap intensified the challenge for organizations, particularly when addressing the expectations of highly specialized workers. For instance, 11% of employees reported that a 20% salary adjustment was necessary to accurately reflect their expertise. Meeting such demands solely through fixed pay increases would have placed unsustainable pressure on organizational budgets, necessitating a shift toward innovative non-monetary solutions.
Implementation of Targeted Non-Monetary Strategies
To reconcile the divergence between structural pay limitations and employee expectations, organizations adopted a multi-faceted approach:
- Flexible and Hybrid Work Models: Offering adaptable schedules and remote work options to enhance work-life balance and reduce turnover.
- Career Development Pathways: Creating transparent progression frameworks, mentorship programs, and skill-building opportunities to retain high-value staff.
- Digital Efficiency and Technology Enablement: Providing access to advanced digital tools to optimize productivity and enhance employee experience.
- Comprehensive Well-Being Programs: Implementing health, financial, and mental wellness initiatives as a strategic retention mechanism.
Table 1: Workforce Priorities and Compensation Strategies (2025)
| Metric | Employee Priority (%) | Organizational Response (%) | Strategic Implication |
|---|---|---|---|
| Flexible/Hybrid Work | 51% | Integrated in 62% of policies | Enhances retention, supports work-life balance |
| Career Progression | 45% | Structured development programs | Retains high-value talent, reduces turnover risk |
| Well-Being Support | 38% | Expanded benefits offerings | Strengthens engagement, mitigates dissatisfaction |
| Salary Increases | 57% expected | 62% planned | Partially addresses financial expectations, supplemented by non-monetary perks |
Conclusion
The 2025 New Zealand workforce landscape demonstrates that strategic talent management requires a holistic approach, combining targeted salary adjustments with robust non-monetary incentives. Organizations that successfully balance financial constraints, employee expectations, and broader well-being initiatives are better positioned to retain specialized talent and maintain competitive advantage in a market characterized by both economic softening and sustained skill scarcity.
7. 2026 Outlook
Macroeconomic Context and Labour Market Dynamics
The New Zealand salary landscape in 2025 displayed a distinct duality: while the broader labour market softened, creating marginal relief in structural wage pressures, demand for highly specialized talent remained acute and fiercely competitive. Structural wage growth, as measured by the Labour Cost Index (2.4%), remained modest, reflecting the subdued macroeconomic environment. Yet, median earnings continued to rise by 4.3%, and average hourly earnings grew by 4.5%, signalling that employers actively deployed targeted compensation strategies—such as promotions, performance bonuses, and service-based increments—to retain key personnel in critical sectors.
Retention-Focused Compensation in Specialized Sectors
Targeted compensation strategies were particularly pronounced in sectors with persistent skill scarcity. The Technology sector, encompassing AI, Cloud, DevOps, and Cybersecurity roles, continued to command premium remuneration, while senior Finance positions, such as management accountants and CFOs, maintained high earning potential. Employers leveraged selective pay adjustments alongside non-monetary benefits to retain these highly specialized professionals without destabilizing fixed-cost structures.
Projected Wage Trends for 2026
Looking ahead, broad structural wage inflation is expected to remain moderate. The 5.2% unemployment rate, combined with a projected GDP growth of 1.0% in 2026, suggests that general salary increases across most industries will be constrained. However, the persistent skills gap in high-demand sectors will likely drive continued targeted wage inflation for critical roles, reinforcing a dual-speed compensation environment. Non-monetary incentives, including flexible work arrangements, professional development, and well-being programs, will remain essential tools for employers seeking to attract and retain talent in a competitive market.
Housing Affordability and Financial Pressure
Housing affordability continues to be a significant determinant of real compensation value. While the national house value-to-income ratio modestly improved to 6.5 in 2025, the proportion of household income required for mortgage repayments remains substantial at 39.3%. This high financial burden, combined with potential CPI fluctuations or interest rate adjustments, underscores housing costs as the dominant factor influencing household financial pressure and, by extension, employee compensation expectations.
Table 1: 2025-2026 Compensation and Economic Indicators
| Indicator | Value (2025) | Forecast (2026) | Strategic Implications |
|---|---|---|---|
| Labour Cost Index (LCI) | 2.4% | ~2.5% | Modest structural wage growth, limited broad-based increases |
| Median Earnings Growth | 4.3% | ~4.0% | Retention-focused adjustments remain critical |
| Average Hourly Earnings | 4.5% | ~4.2% | Targeted premium for specialized roles continues |
| Unemployment Rate | 5.2% | ~5.5% | Supports modest overall wage inflation |
| GDP Growth | 1.0% | 1.0-1.2% | Limited macroeconomic pressure for broad salary increases |
| House Value-to-Income Ratio | 6.5 | Stable | Real compensation impacted by housing affordability |
| Mortgage Burden | 39.3% of household income | Potential increase | Housing costs drive employee expectations |
Strategic Considerations for Employers
Employers entering 2026 must navigate a landscape where general wage growth is restrained, yet specialized talent remains highly sought after. Strategic compensation frameworks will require a careful balance of modest base salary adjustments, targeted premiums for scarce skills, and robust non-monetary benefits. Organizations that successfully integrate these elements will retain competitive advantage in a market defined by selective wage pressures, regional cost-of-living disparities, and ongoing talent scarcity in technology and senior financial roles.
Conclusion
The landscape of salaries in New Zealand for 2025 presents a nuanced and multi-dimensional picture, reflecting the intersection of macroeconomic conditions, regional cost-of-living variations, legislative reforms, and sector-specific talent dynamics. Despite a modest easing in structural wage growth as measured by the Labour Cost Index, median and average earnings demonstrated resilient upward movement, underscoring that targeted compensation strategies—ranging from performance-linked pay to promotions and service increments—remain the primary mechanisms for retaining and motivating high-value talent. This dual-speed labour market highlights the critical distinction between general wage trends and the premiums commanded by specialized roles, particularly in Technology, Finance, and executive leadership positions.
Regional disparities remain a defining feature of the New Zealand salary environment. While Auckland and Wellington offer substantial gross income advantages, these gains are frequently offset by elevated housing costs and higher living expenses, as indicated by cost-of-living indices and rent metrics. Conversely, cities such as Christchurch and Tauranga are experiencing accelerated income growth relative to their lower cost bases, allowing employees in these regions to achieve higher real purchasing power despite comparatively lower nominal salaries. For individuals making career decisions, these regional considerations are pivotal in understanding the true value of a salary beyond headline figures.
Legislative reforms, particularly the Equal Pay Amendment Act 2025, have fundamentally altered the legal framework surrounding pay equity. By tightening eligibility criteria and restricting the scope of claims, the Act has shifted the focus from statutory enforcement to voluntary corporate governance, internal auditing, and transparent compensation practices. This creates a strategic imperative for employers to proactively address gender pay parity and broader remuneration fairness within their internal structures, reinforcing reputational value and employee satisfaction without relying solely on litigation pathways.
The persistence of housing affordability pressures further shapes the real value of salaries. With mortgage repayments consuming nearly 40% of average household income, employees’ financial wellbeing and discretionary spending are directly influenced by their housing obligations. Employers must therefore consider holistic compensation strategies that combine base pay, targeted bonuses, and non-monetary benefits such as flexibility, professional development, and wellbeing programs to attract and retain talent in an environment where real income growth may be constrained.
Looking ahead, the outlook for 2026 suggests a continuation of the dual-speed labour market: broad wage pressures are expected to remain modest, while specialized skills shortages, particularly in AI, Cloud, Cybersecurity, and senior financial roles, will sustain competitive salary premiums. Employers who adopt a strategic, data-driven approach to remuneration—leveraging market benchmarks, regional insights, and non-monetary incentives—will be best positioned to secure and retain critical talent.
In summary, understanding salaries in New Zealand for 2025 requires a comprehensive, multi-layered perspective that incorporates national and regional earnings data, sector-specific benchmarks, legislative shifts, and the broader economic and cost-of-living context. For employees, this knowledge equips them to make informed career and relocation decisions. For employers, it provides a framework for designing effective, equitable, and competitive compensation strategies. By considering both nominal salary figures and real purchasing power, alongside non-monetary incentives and legislative compliance, all stakeholders can navigate the complex compensation landscape with clarity and strategic insight, ensuring sustainable workforce engagement and productivity in the evolving New Zealand labour market.
Table: Key Takeaways for 2025 Salary Planning
| Factor | Insight | Strategic Consideration |
|---|---|---|
| Median and Average Earnings | 4.3%-4.5% growth despite low structural LCI | Targeted compensation for retention remains essential |
| Sectoral Premiums | Technology, Finance, and Executive roles command highest pay | Strategic allocation of salary budgets to scarce skills |
| Regional Variations | Auckland and Wellington have highest nominal income; Christchurch and Tauranga offer higher real income potential | Career and relocation decisions should consider cost-of-living and real purchasing power |
| Housing Affordability | Mortgage repayments consume ~40% of household income | Employers should enhance non-monetary benefits to offset financial pressure |
| Gender Pay and Equity | Equal Pay Amendment Act 2025 limits claims | Internal auditing, transparency, and voluntary pay equity practices are critical |
| Non-Monetary Compensation | Flexibility, career development, and wellbeing programs increasingly prioritized | Essential for bridging the gap between employee expectations and structural pay limits |
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People Also Ask
What is the average salary in New Zealand in 2025?
The average per capita income in New Zealand in 2025 is $51,971, while the average household income is $135,079. Salaries vary significantly by region, industry, and experience level.
How much is the minimum wage in New Zealand in 2025?
From April 2025, the Adult Minimum Wage in New Zealand is $23.50 per hour, while the Starting-Out and Training Minimum Wage is $18.80 per hour.
What is the New Zealand Living Wage in 2025?
The Living Wage rate in New Zealand for 2025 is $28.95 per hour, significantly higher than the statutory minimum, aimed at covering basic expenses and supporting financial wellbeing.
Which sectors have the highest salaries in New Zealand in 2025?
Technology, finance, and specialized executive roles consistently command the highest salaries due to skill demand, complexity of work, and regional economic hubs.
What is the gender pay gap in New Zealand in 2025?
The gender pay gap has reduced to 5.2% in 2025, reflecting accelerated earnings growth for women, particularly in public and female-dominated sectors.
How does inflation affect real wages in New Zealand in 2025?
CPI inflation reached 2.7% in 2025, slightly above the LCI wage growth of 2.4%, leading to modest erosion in real purchasing power for average workers.
Which regions have the highest salaries in New Zealand?
Wellington offers the highest per capita income at $70,001, while Auckland has the highest household income at $165,997 due to dual-income households and corporate concentration.
How does cost of living vary across New Zealand regions?
Wellington has the highest COL Index at 68.3, Auckland follows at 65.9, and Christchurch is the most affordable among major cities with a COL Index of 59.8.
What is the average rent in major New Zealand cities in 2025?
Average monthly rent for a one-bedroom apartment is approximately $2,500 in Wellington, $2,215 in Auckland, and $2,300 in Christchurch.
How does housing affordability affect real wages?
Mortgage payments consume 39.3% of the average household income, highlighting that housing costs significantly reduce the real value of salaries.
What is the impact of the Equal Pay Amendment Act 2025?
The Act tightens pay equity claims by raising thresholds and limiting comparator options, shifting progress toward voluntary corporate pay equity measures.
How do technology sector salaries compare in 2025?
Specialized tech roles in AI, Cloud, Cybersecurity, and DevOps command high premiums, with competitive packages including flexibility and career growth incentives.
What are the average finance sector salaries in New Zealand 2025?
Financial accountants earn between $100,000 and $130,000, while management accountants range from $120,000 to $150,000, depending on experience and specialization.
How much do CFOs earn in New Zealand in 2025?
CFO salaries range widely: $167,569 to $285,739 nationally, with Auckland top executives exceeding $400,000 in high-complexity roles.
Which industries face the most talent shortages?
Healthcare, construction, engineering, and technology sectors face critical skill gaps, pushing salaries higher to attract and retain specialized talent.
How are regional salaries adjusting to talent demand?
Regional employers are offering competitive pay closer to Auckland and Wellington levels to retain talent, reducing historical salary discounts of $10,000–$20,000.
How does part-time pay compare to full-time in New Zealand?
Part-time hourly earnings average $27.50, while full-time median hourly earnings are $36.53, reflecting differences in responsibilities and experience.
What is the projected salary trend for 2026?
General wage increases are expected to remain modest due to a cooling labor market, but specialized roles will continue to see targeted salary growth.
How important is non-monetary compensation in 2025?
Flexibility, career development, digital tools, and well-being support are critical for retention, bridging the gap between employee expectations and budget constraints.
Which cities offer the best real purchasing power?
Smaller regional centres or cities like Christchurch, with lower cost-of-living indices, often provide higher discretionary income despite lower gross salaries.
How has median weekly earnings changed in 2025?
Median weekly earnings increased by 2.8% to $1,380, with full-time employees averaging $36.53 per hour, reflecting steady but moderate wage growth.
What is the unemployment rate in New Zealand 2025?
Seasonally adjusted unemployment is 5.2%, indicating slight labor market slack while specialized roles remain in high demand.
How does CPI inflation compare with wage growth?
CPI inflation of 2.7% slightly outpaces LCI structural wage growth of 2.4%, creating minor erosion in real earnings for the average worker.
Which benefits complement salary increases for retention?
Flexible working arrangements, career progression opportunities, and well-being programs are increasingly critical in retaining specialized talent.
How do salaries vary by experience level?
Entry-level roles earn significantly less than mid-level and senior roles, with specialized or managerial positions commanding high premiums.
What is the salary range for accounts payable and receivable roles?
Entry-level salaries range from $65,000 to $85,000, depending on experience, region, and organizational size.
How are wage floors affecting the lowest-paid workers?
The increase in minimum wage to $23.50 per hour benefits approximately 141,900 workers, improving income security for lower-wage earners.
How do executive salaries differ between regions?
Salaries for executives in Auckland are highest due to corporate concentration, with Wellington and Christchurch offering slightly lower ranges.
How does mortgage cost impact discretionary income?
With mortgage payments consuming nearly 40% of household income, housing remains the largest expense affecting disposable income across all regions.
Why is salary benchmarking important for employers?
Benchmarking ensures competitive compensation, helps attract specialized talent, manages employee turnover, and aligns pay with industry and regional trends.
What is the role of the Living Wage in 2025?
The Living Wage of $28.95 provides a voluntary, higher standard to ensure employees can meet living costs, promoting retention and employee wellbeing.
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Stats NZ
Robert Walters
Business.govt.nz
Ministry of Business, Innovation & Employment (MBIE)
Living Wage Aotearoa New Zealand
Infometrics
ANZ
The Treasury New Zealand
Public Service
Reserve Bank of New Zealand
Robert Half
DLA Piper
BH Accounting
Payscale
ERI
FinanceJobs
Motu
Hays NZ
Adecco
University of Canterbury
Wise
Domestic Movers
Assemble Recruitment
Staircase Financial
New Zealand Legislation
HRD New Zealand
