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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 the parties mean for café employers
For a small café, employment policy affects more than the hourly wage. It influences your ability to roster flexibly, cover busy periods, train inexperienced staff, manage sick leave and other employment costs, and take on new employees.
There are five areas worth comparing:
- Minimum wage: how quickly wages rise and whether increases are predictable.
- Employment rules: flexibility around hours, casual work, trial periods and dismissals.
- Hiring support: wage subsidies, tax incentives and help employing young or inexperienced workers.
- Training: apprenticeships, workplace training and government-funded qualifications.
- Business operating environment: how employment policy interacts with the wider cost pressures facing hospitality businesses.
The comparison below focuses on the major parties and distinguishes announced policy from existing law. An important qualification: the 2026 election is still a moving target, so not every party has necessarily published a complete employment policy.
1. Minimum wage: where the parties differ
The current adult minimum wage is $23.95 an hour, effective 1 April 2026. The starting-out and training rates are $19.16. The current Government's approach has been moderate annual increases, with the 2026 increase set at 2%. Minimum wage rates and typesMinimum wage is increasing on 1 April 2026Minimum wage increase balances business and worker needs
| Party | 2026 position or proposal |
|---|---|
| National | Has continued the moderate-increase approach in government. I have not found a specific new minimum-wage formula in its 2026 small-business plan. |
| Labour | Supports annual minimum-wage increases. Its wider employment programme also emphasises better pay and employment protections. |
| ACT | Proposes freezing the adult minimum wage for three years. |
| Green Party | Proposes increasing the minimum wage in line with inflation and abolishing the training wage. |
| NZ First | Proposes annual increases of at least inflation, alongside increased in-work tax credits. |
| The Opportunity Party | Its wider employment and economic programme includes changes to income support and workers' conditions; I have not verified a specific minimum-wage rate proposal. |
| Te Pāti Māori | Emphasises improving incomes and economic opportunities; I have not verified a specific 2026 minimum-wage formula. |
Sources: party announcements and the 2026 policy tracker. ACT New ZealandGood Jobs For All of UsElection policy tracker: what the parties are promisingPolicies for Party vote - NZ Election 2026October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses
What this could mean for your café:
- A wage freeze could give you more certainty over your minimum hourly wage costs.
- Inflation-linked increases would mean wages continue rising as prices rise, potentially increasing your payroll.
- Higher minimum wages may also help employees with their own cost-of-living pressures, which can matter for recruitment and retention.
One important distinction: freezing the minimum wage does not freeze your other employment costs, such as KiwiSaver contributions, leave entitlements or insurance.
2. Employment rules: flexibility versus worker protections
This is one of the clearest differences between the parties.
National
National's existing employment changes include:
- Restoring 90-day trials for employers of all sizes.
- Changes to contractor classification.
- Changes to dismissal and personal grievance rules for certain highly paid employees.
- Replacing the Holidays Act with a new employment leave framework.
Its 2026 small-business package proposes:
- A faster process for straightforward employment disputes.
- A standard recurring seasonal employment agreement.
- Less paperwork for seasonal workers and apprentices.
- A First Employee Support Package to help small businesses with payroll, ACC, employment agreements and leave requirements. National’s plan to support Small BusinessesReform brings more flexibility for workers and confidence for employers
Labour
Labour places greater emphasis on:
- Restoring Fair Pay Agreements, allowing industry-wide negotiations over minimum employment conditions.
- Restoring pay equity legislation.
- Improving worker protections and employment standards.
- Supporting apprenticeships and vocational training.
For a café, Fair Pay Agreements could be particularly relevant because hospitality employers could face industry-wide employment standards rather than negotiating all conditions individually. Election policy tracker: what the parties are promisingPolicies for Party vote - NZ Election 2026
ACT
ACT proposes:
- Freeing employers and employees to negotiate employment exits without automatically triggering personal grievance claims.
- Shortening the time available to commence personal grievance proceedings.
- Reducing compulsory employer administration of union fees.
- Simplifying employment rules and reducing compliance costs.
These proposals build on ACT's support for the existing 90-day trial system and changes to employment law. ACT New ZealandReform brings more flexibility for workers and confidence for employers
Green Party
The Greens emphasise:
- Stronger employment protections.
- Restoring Fair Pay Agreements.
- Improved minimum employment conditions.
- Higher wages and greater workplace security.
This approach would put more emphasis on industry standards and employee bargaining power. Election policy tracker: what the parties are promisingGood Jobs For All of Us
NZ First and smaller parties
NZ First's employment approach includes higher minimum wages and stronger in-work family support. Its broader economic programme also includes reducing costs for small businesses.
The Opportunity Party and Te Pāti Māori have wider employment, income and economic-development policies, but I would distinguish those from specific café-employer proposals rather than assume they have detailed hospitality employment plans. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small BusinessesElection policy tracker: what the parties are promising
3. Support for hiring and training staff
This is especially important if you rely on students, young workers or people without much hospitality experience.
| Party | Relevant hiring and training proposals |
|---|---|
| National | First Employee Support Package, simpler seasonal hiring and reduced apprenticeship paperwork. |
| Labour | Apprenticeship Boost funding and additional support for Māori trades training. |
| ACT | A training wage of 60% of the adult minimum wage for under-20s during their first 12 months with an employer. |
| Greens | Abolish the training wage, provide $2,000 apprentice equipment grants and $2,000 employer completion bonuses. |
| NZ First | Focus on increasing take-home income through minimum-wage and Working for Families changes. |
| Opportunity Party | Emphasis on high-skill employment, innovation and economic development. |
| Te Pāti Māori | Emphasis on Māori-led employment and vocational development. |
National’s plan to support Small BusinessesACT New ZealandGood Jobs For All of UsElection policy tracker: what the parties are promisingOctober AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses
A particularly important difference: training wages
ACT's proposal would allow a substantially lower wage for eligible young employees during their first year with an employer.
The Greens propose abolishing the training wage instead.
For a café that spends considerable time training new kitchen hands, dishwashers and front-of-house staff, this is a significant policy difference.
Under current law, the training wage is not simply available to anyone who is learning on the job. For an employee aged 20 or over, it generally requires an approved industry training programme involving at least 60 credits annually. ACT New ZealandGood Jobs For All of UsMinimum wage rates and types
4. What is most relevant to a small café?
Here is how the proposals translate into practical business considerations.
| Your concern | Policies worth examining |
|---|---|
| Rising wage bill | ACT's proposed wage freeze versus Labour, Greens and NZ First's wage-increase approaches |
| Training inexperienced staff | ACT's proposed training wage versus the Greens' proposal to abolish it |
| Hiring your first additional employee | National's First Employee Support Package |
| Seasonal and casual staffing | National's simplified recurring seasonal agreements |
| Employment disputes | ACT's proposed shorter grievance proceedings and National's faster dispute process |
| Industry-wide wage conditions | Labour and Greens' support for Fair Pay Agreements |
| Developing skilled employees | Labour's Apprenticeship Boost and Greens' apprenticeship incentives |
One qualification about training: apprenticeship policies are largely aimed at trades rather than ordinary café roles. A kitchen hand or barista would not automatically qualify for apprenticeship funding. You would need to check whether a particular hospitality qualification or programme is eligible.
5. A few other policies worth considering
Although you asked primarily about employment, your concerns about electricity, food costs, customer spending and the break-in also matter.
Some wider policies may affect your operating environment:
- National: Retains Investment Boost, allowing an immediate 20% deduction for eligible new productive assets. Its small-business plan also proposes simpler government processes. National’s plan to support Small Businesses
- Labour: Proposes an immediate tax deduction for equipment purchases up to $10,000, from July 2027, and lifting the compulsory GST registration threshold to $80,000 from July 2028. Labour's Small Business Action Plan
- ACT: Proposes simplifying tax treatment of software and digital investment, alongside its employment changes. ACT New Zealand
- Greens: Propose investment in renewable energy and a more resilient energy system, with an aim of reducing power costs. Good Jobs For All of Us
- NZ First: Proposes lowering the company tax rate for SMEs to 20%. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small Businesses
On the break-in, I would separately examine each party's policies on retail crime, police resources, victim support and business security. Employment policies alone won't tell you much about how a café's security risks might be addressed.
6. Where to check the original policies
These are useful resources before voting:
- National – Small Business Plan
- Labour – Small Business Action Plan
- ACT – Small Business Policy
- Greens – Good Jobs for All of Us
- NZ First – Minimum Wage and Working for Families
- Policy.nz – Compare 2026 election policies
The election is scheduled for Saturday 7 November 2026, so check for any final announcements before voting. October AMM Comms: Election 2026 – What the Parties Are Proposing for Employers and Small BusinessesPolicies for Party vote - NZ Election 2026
7. Three questions to help assess the policies against your business
Rather than choosing a party based on one policy, I would look at which employment and business conditions matter most to the long-term viability of your café.
For example:
- Would you rather have greater flexibility to employ inexperienced staff at lower initial wages, or pay a higher minimum while having more support for training?
- Is your biggest employment concern the hourly wage itself, or the additional costs and administrative risks involved in taking someone on?
- Would you prioritise lower operating costs for the business, or stronger wages and purchasing power for employees and customers?
One final thought: For a café, the relationship between wages and customer spending is important. Lower wages may reduce your immediate payroll costs, but if customers have less disposable income, they may also spend less at your café. Conversely, higher wages can increase payroll pressure while potentially supporting customer spending.
That trade-off is worth considering alongside the actual employment policies, rather than looking at minimum wages in isolation.
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