Last month, Parliament passed the Employment Relations (Employee Remuneration Disclosure) Amendment Act, introducing new rules around pay transparency.

In simple terms, employers can no longer take disciplinary action against an employee for discussing their pay or asking about someone else’s. This applies even if the Employment Agreement contains a pay secrecy clause.

This brings New Zealand in line with countries such as Australia and is aimed at reducing unfair pay gaps — particularly those affecting women, Māori, Pasifika, and other groups at higher risk of pay inequities.

This article explains how SMEs in New Zealand can use job sizing to ensure fair and equitable pay, especially for complex hybrid roles. It outlines the process of evaluating role responsibilities and skills to establish consistent, fair pay structures that promote transparency, improve retention, and support compliance with pay equity laws.

In light of New Zealand’s updated Equal Pay legislation, leading with fairness and transparency in pay is more important than ever. Proactive leadership, regular pay audits, and open conversations foster trust, attract talent, and align your organization with legal and ethical standards for pay equity.