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I run a café with a small team. Food and power costs are squeezing margins, customers are spending less, and we've experienced a break-in. I am considering my vote in the 2026 New Zealand general election. How do parties differ on minimum wages, employment rules and support for hiring and training staff?
2026 New Zealand election: what employment policies could mean for your café
For a café with a small team, the employment debate matters in two directions:
- Your costs: minimum wages, holiday entitlements, KiwiSaver, sick leave and the cost of taking on another employee.
- Your ability to grow: apprenticeships, training subsidies, hiring incentives, staff availability and employment flexibility.
The main political divide in 2026 is between parties favouring higher wage floors and stronger collective employment protections, and parties favouring more flexibility for employers and lower costs or risks when hiring.
There are also important differences within those broad positions. Below is a comparison based on policies and statements available as at 31 October 2026, ahead of the 7 November general election.
1. Minimum wages: where the parties stand
The adult minimum wage increased from $23.50 to $23.95 an hour on 1 April 2026.
| Party | Minimum wage position |
|---|---|
| National | Prime Minister Christopher Luxon indicated increases would broadly follow inflation. |
| Labour | Supports annual increases at least in line with inflation. |
| Green | Wants to move the minimum wage towards the Living Wage. |
| ACT | Proposes freezing the adult minimum wage for three years. |
| NZ First | Promises annual increases of at least inflation for the next three years. |
| Te Pāti Māori | Supports increasing the minimum wage to the Living Wage. |
Sources: Retail NZ's October 2026 policy comparison and the parties' public commitments. Minimum WagePolicy scorecards for working people NZCTU
What this means for your café
If you employ junior front-of-house staff, kitchen assistants or cleaners on or near minimum wage:
- National's approach would generally mean increases linked to inflation.
- Labour and NZ First have made clearer commitments to annual inflation-linked increases.
- Greens and Te Pāti Māori propose a higher wage benchmark, potentially increasing your wage bill more quickly.
- ACT's proposed freeze would limit increases to the adult minimum wage for three years.
There is an important distinction between the adult minimum wage and the training wage. ACT proposes a separate, lower training wage, while the Greens want to abolish the training wage.
2. Employment rules: flexibility versus worker protections
This is potentially just as important as the minimum wage for a small café.
| Issue | National | Labour | ACT | Greens / Te Pāti Māori |
|---|---|---|---|---|
| 90-day trials | Retain | Abolish | Retain | Abolish |
| Fair Pay Agreements | Oppose restoration | Restore | Oppose restoration | Restore |
| Pay equity legislation | Does not support restoration | Restore | Does not support restoration | Restore |
| Employment disputes | More streamlined process | Restore previous protections | More employer flexibility | Restore previous protections |
| Contractor classification | Retain recent changes | Reverse recent changes | Retain | Reverse recent changes |
NZ First generally aligns with National and ACT on these particular employment-law questions: it does not support restoring Fair Pay Agreements or abolishing 90-day trials. Policy scorecards for working people NZCTU2026 General Election Policies: What they could mean for businesses | New Zealand
Why these differences matter to a café owner
- 90-day trials: These allow eligible employers to dismiss a new employee during the trial period without the usual personal grievance for unjustified dismissal. Retaining them gives you an option when hiring someone whose suitability is uncertain.
- Fair Pay Agreements: These would allow minimum employment terms to be negotiated across an industry. Hospitality businesses could be affected by industry-wide pay and conditions rather than negotiating everything individually.
- Personal grievances: Labour, Greens and Te Pāti Māori want to reverse recent changes to employment protections. National and ACT support the current direction.
- Employment flexibility: ACT is particularly focused on making it easier for employers and employees to agree on employment exits and reducing the cost and uncertainty of disputes.
One important qualification: National and ACT declined to answer the NZ Council of Trade Unions' employment-policy questionnaire. The comparisons above therefore include positions inferred from their public statements and legislative record, rather than treating every position as a direct party response. Policy scorecards for working people NZCTU2026 General Election Policies: What they could mean for businesses | New Zealand
3. Hiring and training: what help could you receive?
This is where some of the differences become particularly relevant if you want to take on another kitchen assistant, train a junior employee or develop a more experienced staff member.
National
National's small-business programme includes:
- Making it easier for small businesses to hire their first employee.
- Simplifying employment administration.
- Making it easier to employ seasonal workers.
- Making it easier to take on apprentices.
- Speeding up employment dispute resolution.
It also proposes compulsory KiwiSaver or an equivalent scheme, with combined employer and employee contributions rising to 12% by 2032. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses2026 General Election Policies: What they could mean for businesses | New Zealand
Labour
Labour has made more specific commitments to training and apprenticeship support.
Its proposed measures include:
- Extending Apprenticeship Boost employer payments.
- Payments of $500 per month for up to two years from July 2028.
- A $1,000 toolbox grant.
- Five additional eligible trades.
- Structured mentoring for apprentices.
- A Māori-led trades training programme, with $21 million annually.
- Its Start Work Now programme, intended to support nearly 30,000 apprentices through construction and infrastructure projects.
Labour also proposes restoring Fair Pay Agreements and pay equity legislation. Labour's 2026 Election Policies2026 General Election Policies: What they could mean for businesses | New Zealand
ACT
ACT's approach centres on reducing the risks and costs of employing people.
Its proposals include:
- A three-year freeze on the adult minimum wage.
- A new training wage at 60% of the adult minimum wage for eligible workers under 20.
- More flexibility in mutually agreed employment exits, with safeguards.
- A three-month timeframe for personal grievance proceedings.
- Simplifying employment law and reducing compliance burdens.
For a café considering employing younger, inexperienced workers, the proposed training wage is particularly relevant. It could change the starting wage costs for eligible employees. Minimum Wage2026 General Election Policies: What they could mean for businesses | New Zealand
Green Party
The Greens' Good Jobs for All of Us package focuses on improving job quality and training opportunities.
Its proposals include:
- Abolishing the training wage.
- Moving the minimum wage towards the Living Wage.
- Providing more support for apprentices.
- Restoring Fair Pay Agreements.
- Strengthening collective bargaining and worker protections.
The practical implication is that training a junior employee would be subject to a higher wage floor, while additional apprenticeship support could help offset some training costs. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small BusinessesMinimum Wage2026 General Election Policies: What they could mean for businesses | New Zealand
New Zealand First
NZ First's employment-related proposals include:
- Minimum wage increases of at least inflation annually for three years.
- A higher Working for Families in-work tax credit.
- Reducing company tax from 28% to 20% for businesses with turnover below $30 million.
- Changes to KiwiSaver, with employer and employee contributions eventually rising to 10%.
Its lower company tax proposal could be relevant to profitable café businesses, although the benefit depends on your business structure and taxable profits.
Its publicly announced employment programme is less detailed on direct apprenticeship subsidies than Labour's. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses2026 General Election Policies: What they could mean for businesses | New ZealandMinimum Wage
Te Pāti Māori
Its employment policies include:
- Raising the minimum wage to the Living Wage.
- Removing youth wage rates.
- Supporting collective bargaining and union access.
- Restoring pay equity legislation.
- Supporting Māori economic development and Māori-owned businesses.
It places more emphasis on wage equality, collective employment rights and Māori-led economic development than on reducing employers' hiring costs. 2026 General Election Policies: What they could mean for businesses | New ZealandPolicy scorecards for working people NZCTUParty policies, simplified: Employment
4. Side-by-side comparison for your café
Here is another way to look at the differences, focusing on the practical issues you raised.
| Your concern | Policies to pay attention to |
|---|---|
| Rising staff wages | ACT's proposed freeze versus Labour, NZ First and Greens' increases |
| Hiring inexperienced staff | ACT's proposed training wage versus Greens' abolition of it |
| Hiring your first additional employee | National's small-business hiring proposals and ACT's employment flexibility |
| Training kitchen staff | Labour's expanded Apprenticeship Boost and Green apprenticeship support |
| Employment disputes | ACT's proposed employer flexibility versus Labour and Greens' restoration of protections |
| Long-term employment costs | KiwiSaver proposals, particularly employer contribution increases |
| Retaining good staff | Pay equity, wage growth and collective bargaining policies |
5. What about your food, power and security costs?
These are not directly employment issues, but they matter when considering the overall impact of an election on your café.
Some other relevant business policies include:
- National: Simplifying regulation and increasing electricity supply and competition.
- Labour: A small-business action plan, faster payment of invoices by qualifying large businesses, and an immediate asset write-off of up to $10,000 for eligible small businesses.
- ACT: Reducing employment and business compliance costs, alongside changes to business tax rules.
- Greens: Competition measures aimed at supermarkets, banks and energy companies.
- NZ First: Reducing company tax to 20% for businesses with turnover below $30 million.
- Te Pāti Māori: Support for Māori business development and investment in Māori economic activity.
October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses2026 General Election Policies: What they could mean for businesses | New ZealandLabour's 2026 Election Policies
On the break-in, I would distinguish between employment policy and crime prevention. The parties' broader law-and-order policies, policing resources and support for crime-affected businesses are worth examining separately.
6. Questions worth considering before you vote
Given the pressures you describe, I would examine the following five questions rather than looking at minimum wages in isolation.
Can I afford another employee? Consider the minimum wage, KiwiSaver contributions, leave obligations and other employment costs together.
Can I afford to train someone? Look at whether apprenticeship or training subsidies are available to hospitality businesses, rather than assuming every trade-training subsidy covers café employees.
How much employment flexibility do I need? Consider the value of 90-day trials, employment dispute protections and the ability to manage poor performance.
Will the policies help my customers spend more? Higher wages can improve household purchasing power, but may also increase your operating costs. Both sides matter.
Will the policies improve my business's resilience? Consider electricity costs, food competition, small-business tax relief, security and the ability to invest in equipment.
7. Where to check the policies yourself
These are useful independent and primary sources:
- Policy.nz – 2026 party policy comparison — compare policies across parties and topics.
- Retail NZ – Minimum wage party positions — particularly useful for retailers and hospitality employers.
- NZ Council of Trade Unions – Employment policy scorecards — detailed comparison of employment protections.
- BDO – What the 2026 election could mean for businesses — business and employment implications.
- AMM Law – 2026 election policies for employers and small businesses — a useful employer-focused policy summary.
My suggestion for evaluating the choices
I would keep three separate measures in mind:
- Employment affordability: What will it cost you to employ and retain another person?
- Business viability: What policies could help you retain more of each dollar of café revenue?
- Workforce development: What assistance is available to train staff and build a reliable team?
One final consideration: these are campaign commitments, not guaranteed changes to law. The eventual outcome will depend on election results, coalition negotiations, legislation and implementation.
I can also take this one step further and build a café-owner comparison of National, Labour, ACT, Greens and NZ First, estimating how their proposed wage, KiwiSaver and employment policies could affect the annual cost of employing 3–5 café staff.
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Captured 31 October 2026 · shown as ChatGPT gave it, not a verified account