Retail workers received an average pay rise of 1 percent in 2026
Workers received an average pay rise of 1 percent in 2026, according to newly released data from Retail NZ.
In 2026, retail workers experienced an average wage increase of 1 percent, a figure reported by Retail NZ. This rise in pay was minimal compared to inflation, which stood at 4.1 percent for the June quarter. The wage growth was significantly lower than the 3.4 percent increase seen in the previous year, reflecting economic headwinds faced by the retail sector.
Retail NZ's 2026 wages guide, which covered the period from 21 May to 12 June, revealed that the average retail wage had risen to $30.94 per hour. This increase was lower than the 3.4 percent surge recorded in 2025, with the latter attributed to challenging economic conditions. Retail NZ's chief economist, Young, suggested that the low wage growth was primarily due to retrenchments within the sector, low consumer confidence, and a tight economy.
Despite the modest wage increase, Young noted that the average retail wage remained well above the minimum wage ($23.95) and living wage ($28.95). The living wage was slated to increase to $29.90 from 1 September. Young also highlighted that over half of the retailers surveyed offered staff discounts, while 43 percent provided upskilling opportunities.
Additionally, one in five retailers contributed to KiwiSaver accounts beyond the minimum requirements. These perks, Young explained, were aimed at enhancing the overall employee experience, emphasizing the importance of customer service in driving sales and growth in the retail sector.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
