New Zealand election 2026: what the parties propose for café employers

For a small café, the key question is how each party would balance the cost of employing staff, flexibility when business is quiet, and the ability to recruit and retain good people.

As of 23 October 2026, the parties differ on minimum-wage increases, employment protections, training wages and incentives for employers. These differences matter in hospitality, where wage costs have to be covered even when customers are spending less. The current adult minimum wage is $23.95 an hour, effective from 1 April 2026. Minimum wage rates and typesThe business and innovation policies of Election 2026, explained

I'll compare the main parties on those issues, then explain which policy details are worth checking against your café's actual staffing costs. This is a neutral comparison, not a voting recommendation.

1. Minimum wages and employment rules

Current proposals and stated positions as of October 2026. A proposal is not a law unless it has been enacted.

Party	Minimum wages	Employment rules and worker protections
National Party	Has not made a comparable commitment to increase the minimum wage above inflation for the next three years.	Supports the existing direction of employment reform, including 90-day trials for businesses of all sizes. Proposes faster Employment Relations Authority dispute resolution. Policy scorecards for working people NZCTUThe business and innovation policies of Election 2026, explained
Labour Party	Commits to setting the minimum wage above inflation for the next three years.	Supports restoring Fair Pay Agreements and the previous pay-equity framework. This would strengthen collective wage-setting and some worker protections. Policy scorecards for working people NZCTU
ACT New Zealand	Proposes freezing the adult minimum wage at $23.95 for three years and reducing the training wage for eligible workers under 20 from 80% to 60% of the adult rate.	Proposes limiting the period for raising most employment grievances to 90 days, with an exception for sexual-harassment claims. The business and innovation policies of Election 2026, explainedACT Party proposes three-year wage freeze
Green Party	Supports minimum-wage increases above inflation over the next three years.	Supports restoring Fair Pay Agreements and the previous pay-equity framework, and proposes abolishing the training wage. Policy scorecards for working people NZCTUGreen Party to abolish training wage and provide more support for apprentices
New Zealand First	Supports setting the minimum wage above inflation over the next three years.	Opposes restoring Fair Pay Agreements and the previous pay-equity framework, according to the NZ Council of Trade Unions' election scorecard. Policy scorecards for working people NZCTU
Te Pāti Māori	Supports minimum-wage increases above inflation over the next three years.	Supports restoring Fair Pay Agreements and the previous pay-equity framework. Policy scorecards for working people NZCTU
The Opportunities Party (TOP)	Has no stated policy commitment in the scorecard to minimum-wage increases above inflation.	Opposes restoring Fair Pay Agreements; its position on restoring pay equity is recorded as having no policy. Policy scorecards for working people NZCTU

Important qualification: National and ACT declined to answer the Council of Trade Unions' industrial-policy questionnaire, so some entries reflect their public statements and legislative records rather than direct answers to those questions. The scorecard is produced by a union organisation, so its classifications are best read alongside parties' own policy announcements. Policy scorecards for working people NZCTU

2. What could the differences mean for your café?

Minimum-wage increases versus a freeze

The adult minimum wage is currently $23.95 per hour, while eligible starting-out and training rates are $19.16. Minimum wage rates and types

Here's how the three-year approaches compare for a simple example: an employee working 30 paid hours per week at the current adult minimum wage.

Illustrative weekly wage cost for one employee

$718.50

30 hours × $23.95, before tax and excluding employer on-costs.

Above-inflation increases

If Labour, the Greens or another party's approach raises the minimum wage, your cost per hour for affected staff would increase. The actual effect depends on the increases announced each year and whether you pay above minimum already.

ACT's proposed freeze

At an unchanged rate, this employee's base weekly wage remains $718.50. If prices rise while the wage stays fixed, the wage cost buys less in real terms, but employees' purchasing power also falls.

These are illustrations of the policy mechanisms, not forecasts of future wages. They exclude holiday pay, KiwiSaver employer contributions where applicable, ACC levies and other employment costs.

Fair Pay Agreements and employment flexibility

Fair Pay Agreements would allow minimum pay and conditions to be negotiated across an industry rather than separately at each workplace. Labour, the Greens and Te Pāti Māori support restoring them; National and ACT oppose restoration, as does New Zealand First according to the scorecard. Policy scorecards for working people NZCTU

For a café owner, the practical trade-offs are:

• Industry-wide wage and conditions rules: could reduce differences between competing employers, but may restrict your ability to set terms below an industry minimum.
• 90-day trials: National and ACT support the current availability of trials for businesses of all sizes. These can provide a route to assess a new hire, but do not remove all employment obligations.
• Employment grievances: ACT proposes a 90-day limit for most claims to the Employment Relations Authority. That is distinct from the existing 90-day employment trial period.
• Leave and pay equity: Labour, the Greens and Te Pāti Māori support reversing the current government's employment-leave and pay-equity changes, while National, ACT and New Zealand First oppose that reversal in the union scorecard. Policy scorecards for working people NZCTUThe business and innovation policies of Election 2026, explained

The important distinction is between reducing your immediate staffing costs and changing the rules governing the employment relationship. These proposals address different parts of your business risk.

3. Support for hiring and training staff

This is where the differences go beyond hourly pay.

The Greens: apprentice and training support

The Greens propose abolishing the training wage, a $2,000 equipment grant for apprentices, an additional $30 million a year for Māori- and Pasifika-led training support, and a $2,000 completion bonus for employers who support apprentices through their qualifications. Green Party to abolish training wage and provide more support for apprentices

Café relevance: the proposed employer bonus is specifically linked to apprenticeships, not ordinary barista or front-of-house hires.

National: business investment and administrative changes

National's existing Investment Boost scheme lets businesses deduct 20% of the cost of eligible new assets. Its additional small-business proposals include streamlining licensing and government paperwork and faster employment-dispute resolution. The business and innovation policies of Election 2026, explained

Café relevance: potentially useful for eligible new equipment purchases, though a deduction reduces taxable income rather than reimbursing 20% of the purchase price.

Labour: targeted investment tax treatment

Labour proposes replacing Investment Boost with a full write-off for eligible new assets costing up to $10,000 for businesses with annual revenue below $10 million. It also proposes requiring large businesses to pay small suppliers within 15 days for invoices of $25,000 or less. The business and innovation policies of Election 2026, explained

Café relevance: the proposed write-off may matter for eligible smaller equipment purchases; the supplier-payment measure matters if your café invoices larger businesses.

New Zealand First: lower company tax

New Zealand First proposes reducing the company tax rate from 28% to 20% for small and medium businesses with annual turnover below $30 million. The business and innovation policies of Election 2026, explained

Café relevance: the benefit depends on your business structure and taxable profit. It would not directly reduce the hourly wage you pay staff.

For ordinary café recruitment, the policies above do not establish a universal wage subsidy for hiring an extra barista, cook or weekend worker. Apprenticeship support and general business tax relief are different mechanisms, so check the eligibility conditions before treating them as savings.

4. A quick way to compare the policies against your own numbers

Estimate the cost of a wage increase

Enter your café's total weekly paid staff hours and average hourly pay. Adjust the hypothetical wage increase to see its direct effect.

Paid staff hours per week

120

20

200

400

20

200

400

20

200

400

Average hourly wage

$25.00

$23.95

$30

$35

$23.95

$30

$35

$23.95

$30

$35

Hypothetical wage increase

0.5%

0%

2.5%

5%

0%

2.5%

5%

0%

2.5%

5%

Extra wages per week

$15.00

Extra wages per year

$780.00

Illustrative calculation using a constant number of paid hours for 52 weeks. Excludes employer on-costs, turnover, changes in staffing and productivity, and any price or sales response. This is not a forecast of any party's proposed minimum-wage rate.

5. What about food prices, power bills and the break-in?

Your question is about employment policy, but these other pressures affect whether any proposed wage changes are manageable.

• Food and power costs: the parties' wider business, tax and energy policies may affect your operating costs, but the employment policies above do not guarantee lower electricity bills or cheaper ingredients.
• Weaker customer spending: minimum-wage increases may support workers' purchasing power, while increasing your wage bill. Whether higher spending flows back to your café depends on customers' behaviour and other economic conditions.
• Break-in and security costs: the employment-policy differences covered here do not establish a direct grant to compensate your café for a burglary. Insurance, physical security, local crime prevention and any applicable business support would need to be assessed separately.

6. The three questions to take into the voting booth

As you compare party manifestos, consider:

1. How predictable do I need my wage bill to be? Compare an above-inflation wage path with a freeze, and account for how much of your team already earns above minimum wage.
2. How much flexibility do I need when hiring? Compare trial periods and dispute rules with the potential costs of staff turnover, training and retaining experienced workers.
3. What support would I actually qualify for? Distinguish grants tied to apprenticeships from tax deductions for equipment and broad changes to company tax.

For the most directly relevant sources, start with the NZ Council of Trade Unions' 2026 employment-policy scorecard, the Employment New Zealand minimum-wage rates, the Greens' apprenticeship announcement, and The Spinoff's October 2026 business-policy comparison.

The central distinction is whether you want to prioritise more predictable labour costs and employment flexibility, stronger wage floors and worker protections, or targeted help with training and business investment. The parties offer different combinations, and their wider economic policies may matter just as much as their employment proposals for a small café.