Equal Pay Amendment Act 2025
Equal Pay Amendment Act 2025: a simple guide
What it is
- New Zealand’s Equal Pay Amendment Act 2025 is a fast‑track, overall pay equity law. It changes how pay equity claims are assessed and who can claim, aiming to control costs and speed up settlements.
What changed
- Threshold for claims: The act raises the bar for what counts as work that is undervalued because of gender, making it harder to prove pay equity claims.
- Redefinition of female‑dominated work: “Work predominantly performed by female employees” is now defined as a workforce that is at least 70% female.
- More limited number of ongoing claims: 33 current pay equity claims were dropped because of the new rules and must be refiled.
- Time limits for claims: Claims must be raised within 10 years after a pay equity claim settlement.
- Merit criteria: The act sets specific tests for whether a claim is valid, focusing on characteristics of female‑dominated work.
- How claims work: It covers individual claims, union claims, and multi‑employer claims, with rules for opting out and for consolidating claims.
- Employer decisions: It tightens the timeframes for how quickly employers must decide pay equity claims.
- Other laws updated: The act also amends the Employment Relations Act 2000 and the Public Service Act 2020.
Why this happened
- Background: New Zealand has a history of pay equity laws, including the 1961 Government Service Equal Pay Act, the 1972 Equal Pay Act, and the 2020 Equal Pay Amendment Act, which introduced the idea of pay equity to correct gendered undervaluation in pay.
- Budget and policy context: The government argued the changes would save billions in potential pay equity settlements by tightening the rules and how costs are funded. Critics said the changes reduced scrutiny and could harm women workers.
What people are saying
- Supporters (National, ACT, NZ First): Say the changes save money for the government and taxpayers and bring pay equity in line with budget goals.
- Critics (Labour, Greens, some unions): Say the changes weaken protections for women workers and could delay or limit fair pay.
- Unions: Some welcomed that many workers already had their pay corrected, but others warned the reforms could make it harder for women in female‑dominated jobs to be paid fairly.
Impact so far
- The government estimated the changes could save around NZ$12.8 billion over four years in the budget, though critics dispute the figures and motives.
- By May 2025, 33 ongoing claims were halted and had to be refiled under the new rules, affecting thousands of workers in education, health, and public service sectors.
- In August 2025, several unions launched a High Court challenge arguing the changes breached rights under the New Zealand Bill of Rights Act 1990.
Look ahead
- The 2025 changes are controversial. Opponents have signaled they would repeal the act if they form government in 2026.
- Political debate and legal challenges are likely to continue as workers and unions navigate the new rules.
This page was last edited on 2 February 2026, at 19:14 (CET).