Minimum wage exemption: let’s talk about it

Minimum wage exemption: let’s talk about it

The barriers to employment for disabled people in Aotearoa are often hard to talk about.

 At will&able, we believe in being open and transparent about the system we operate in, and our uncharted journey towards becoming a financially sustainable social enterprise while doing right by our people.

A key part of this conversation is the Minimum Wage Exemption scheme, which will&able currently relies on to provide a safe and supported environment for our team.

While there are some who do not support the scheme, the reality is that it remains the only framework in Aotearoa that allows disability enterprises like ours to offer meaningful work to people with intellectual disabilities.

At will&able, depending on their abilities, some of our team are on minimum wage while others are employed under a Minimum Wage Exemption Permit. This means they earn less than minimum wage, but this is balanced with the Supported Living Payment (SLP). In many cases, their combined income meets or exceeds the minimum wage, with the added benefit of tailored, supported work.

Because this system has been in place for some time, we recently checked in with our team’s caregivers. The results were clear:

  • 84% prefer the exemption model
  • 14% prefer standard minimum wage
  • The remainder were unsure

Over three-quarters of caregivers agreed it was very important that employment does not jeopardise eligibility for government benefits. One explained: “Minimum wage may reduce job opportunities due to productivity differences.” Another told us: “Part-time work offers social and mental benefits.” Others emphasised the risk of exclusion if wage expectations don’t match ability.

Caregivers also shared their concerns about moving to a strict minimum wage model:

  • 68% worried about a reduction or loss of government benefits
  • 62% feared fewer opportunities for disabled people
  • 50% believed working hours could be reduced
  • 48% were concerned about losing support at work

At the same time, they highlighted what matters most about employment at will&able:

  • 93% value the supported work environment
  • 79% value the focus on ability over disability
  • 57% highlight job security
  • 48% value job coaching and skill development

We also see tremendous positive change in our team members since starting at will&able:

  • 88% have increased confidence
  • 79% have formed new friendships
  • 77% have improved daily living skills
  • 72% report better mood and wellbeing
  • 68% have developed stronger communication skills and greater physical independence

Caregiver voices bring these numbers to life:

  • “He prides himself that he works and feels valued. Tells people openly where he works and what he does. Looks forward to work each day and has never had a bad day at work!”

  • “More confidence and drive to achieve. It’s such a welcoming environment for him and he loves going every day. Take pride in how it gives him a sense of worth.”

  • “He has a life outside of home, he's getting out there doing something and contributing to society.”

  • “Being recognised for her work and how far she has come. She really enjoys her work and is very proud of the brand.”

  • “An environment he can relate to and fit in well with. He looks forward to going to work.”

These stories highlight that supported work is about so much more than wages – it creates independence, connection, purpose and pride.

So, what are the benefits of the Minimum Wage Exemption?

1. It creates access to employment that wouldn't otherwise exist
For some people with significant intellectual or cognitive disabilities, the standard minimum wage doesn’t reflect their productivity under current work systems. The exemption allows employers to offer real paid work that recognises individual capacity – opening doors that would otherwise remain closed. At will&able, this currently adds up to 2,673 hours of work each week.

2. It enables genuinely supported work environments
Providing a supported workplace with supervision, coaching and modified tasks is resource-intensive. The exemption makes this financially viable, ensuring employment is sustainable long-term.

3. It ensures income support is maintained
We only employ workers on an exemption who also receive the Supported Living Payment. This ensures their income remains fair while keeping them connected to other essential supports. In our experience, most prefer to work at a level that maintains an adequate SLP.

4. It builds pathways to greater independence
Exemption-based roles can be stepping stones – helping people build routines, skills, and confidence that can lead to greater autonomy or even transition into open employment.

5. It encourages inclusive hiring in a risk-averse system
Many employers are hesitant to hire disabled workers due to concerns about productivity, liability, or cost. The exemption scheme lowers those barriers and often changes perceptions along the way.

6. It supports learning at the right pace
The exemption makes it possible to support people still developing work-related behaviours and skills, with structure and repetition in a real employment setting. New Zealand law already recognises that reduced wages are appropriate in certain cases (e.g. training wages or youth employment), and intellectual disabilities often require similar flexibility.

Looking ahead

will&able is open to exploring alternatives and scoping what models might work better in the future. We are committed to being part of the wider conversation about how we can build a system that balances dignity, equity and viability for everyone.

In the meantime, we continue to show what’s possible when people are given the opportunity to work in a safe, supported environment.

We invite you to visit and see our organisation in action – our doors are open.

Inclusive employment is the future of work we believe in and we’re proud to be building it – learning and evolving to make work, work for everyone.