Key Update: New Pay Transparency Law in New Zealand

From 27 August 2025, a new law is coming into effect that strengthens employees’ rights to talk openly about pay.

The Employment Relations (Employee Remuneration Disclosure) Amendment Act 2025 marks a clear shift toward more transparency and fairness in workplaces across Aotearoa.

What the Law Means

It’s now unlawful for employers to prevent, discourage, or penalise employees for discussing their pay — whether that’s with colleagues, friends, or anyone else.

This includes any confidentiality or “pay secrecy” clauses in employment agreements.

The goal behind this change is simple: to build trust and close pay gaps by helping employees understand how pay decisions are made — and helping employers identify and address inequities early.

Why It Matters

For employees, this means more open and confident conversations about pay — without fear of repercussions.

For employers, it’s a chance to review and reinforce fair, consistent, and transparent pay practices. It’s also a reminder to make sure managers are equipped to have constructive, clear conversations about pay decisions.

What Employers Should Do Now

✅ Review your employment agreements — remove or update any pay secrecy or confidentiality clauses.

✅ Check that your pay structures are fair, evidence-based, and easy to explain.

✅ Prepare your leaders for open, honest conversations around pay.

✅ Communicate the change with your team — this builds trust and shows you’re proactive.

Our Take

This change is a positive step toward more trust, fairness, and accountability in workplaces.

While it might spark some new conversations, it’s also a great opportunity to make sure your pay approach reflects the culture and values you want to stand for.

If you’d like help reviewing your agreements or building more transparency into your people practices, the People Passion team can help.

We’ll make it simple, compliant, and people-first.