Professional Musician Rates in NZ
For nearly a decade, musicians and instrumentalists in New Zealand’s music industry have grappled with a simple, yet critical question:
“What do I charge?”
This psychological impasse has created nationwide ambiguity regarding appropriate rates for musicians. Consequently, venues, ensembles, and stakeholders have been left to make arbitrary assumptions about the value of their services.
To address this socio-economic issue of fair compensation for professional musicians in New Zealand, The NZ Session Collective conducted an extensive analysis, incorporating historical data, economic factors, and industry-specific trends. Through extensive discussions with circuit musicians, retired professionals, pedagogues, industry surveys, and market insights, we've developed the following timeline to understand historical rates and establish modern pricing.
We've outlined the rationale, methodology, and economic impact to support a new standard for musicians' hourly rates, ensuring their work is valued and sustainable in today’s economic landscape.
Historical Overview of Musician Rates in New Zealand.
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Musicians earned $100 per gig, regardless of hours, primarily performing in pubs and bars. Many bands made a comfortable living playing 3-4 shows a week.
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The introduction of the government's policy to remove tax deductions for "business lunches/dinners" caused many restaurants to halt or reduce live music, impacting musicians' earnings.
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The music scene began to recover, introducing "Fillers"—musicians who filled in at rehearsals or gigs for higher-paid musicians engaged elsewhere. This practice helped musicians manage overlapping commitments and maintain income levels.
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Despite inflation and increased competition, the rate per musician per gig generally remained at $100. However, some musicians and band leaders started charging higher rates due to increased competition and intergenerational economic factors.
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Early in the decade, the industry saw a shift to $50 per hour per musician, marking the adoption of an hourly rate.
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This year marked the widespread adoption of the $100 per hour rate by circuit musicians. Despite a growing pool of musicians and greater competition, this rate saw minimal change.
From our extensive discussions with circuit musicians, retired professionals, pedagogues, industry surveys, and market insights, we've developed the following timeline to understand historical rates and establish our modern pricing.
$100—that’s the magic number we started with. In 2015, gigging musicians and instrumentalists began charging $100 per hour. This rate, established by circuit musicians, accurately reflected the value of the service provided at the time and was widely adopted across the nation. However, this rate has scarcely changed since then.
Despite a significant increase in the pool of musicians and a corresponding rise in competition, remuneration has not kept pace. To address this discrepancy, we examined the economic factors affecting musicians and instrumentalists and sought to establish a true base rate for 2024 that reflects the current value of their professional services.
Key Economic and Industry-Specific Factors.
Our analysis incorporating historical data, economic factors, and industry-specific trends.
1. Year-by-Year Inflation and CPI (Consumer Price Index) Adjustments
Methodology: Inflation represents the rate at which the general level of prices for goods and services rises, thereby decreasing the purchasing power of money. To adjust for inflation on a year-by-year basis, we review and apply the annual inflation rate each year to our base rate. This ensures that the rate reflects current economic conditions.
Rationale: Adjusting for inflation annually ensures that the real value of wages remains constant over time. Without this adjustment, musicians would experience a reduction in their purchasing power, as the same nominal wage would buy fewer goods and services each year compared to the past.
Economic Impact: By applying the annual inflation rate, the base rate is adjusted to reflect yearly price increases. This adjustment ensures that the base rate maintains its purchasing power, allowing musicians to cope with the rising cost of living and avoid real wage erosion.
2. Year-by-Year Cost of Living Adjustments (COLA)
Methodology: The Cost of Living Adjustment (COLA) accounts for changes in the cost of essential goods and services necessary for maintaining a certain standard of living. Each year, the base rate is reviewed and adjusted according to the annual COLA rate to ensure it covers the increased costs of essential expenses.
Rationale: COLA adjustments are essential for ensuring that wages rise in tandem with the increased costs of essential expenses such as housing, healthcare, and food. This adjustment helps maintain the standard of living for musicians despite rising costs.
Economic Impact: By applying the annual COLA rate, the base rate is adjusted to cover the increased cost of living. This ensures that musicians' earnings are sufficient to meet their essential living expenses, safeguarding their real standard of living against inflationary pressures on necessary goods and services.
3. Year-by-Year Wage Growth Adjustments
Methodology: Wage growth reflects the increase in average earnings across the economy, driven by productivity gains, labour market dynamics, and overall economic growth. Each year, the base rate is reviewed and adjusted according to the annual wage growth rate, ensuring it remains aligned with broader economic trends.
Rationale: Incorporating annual wage growth adjustments ensures that musicians' compensation keeps pace with general earnings trends. This adjustment reflects improvements in overall economic productivity and ensures that musicians benefit proportionately from economic growth.
Economic Impact: By applying the annual wage growth rate, the adjusted base rate aligns with the general rise in wages. This adjustment ensures that musicians’ earnings reflect productivity improvements and favourable labour market conditions, maintaining their relative income levels within the economy.
4. Economic Adjustment (Year-by-Year Calculation)
By applying the annual rates for inflation, wage growth, and COLA year by year, the base rate for musicians from 2015 has been adjusted to reflect 2024 economic conditions. The calculations are as follows:
2016: $100 × (1 + 0.003) × (1 + 0.0173) × (1 + 0.0073) ≈ $102.78
2017: $102.78 × (1 + 0.0063) × (1 + 0.0165) × (1 + 0.0008) ≈ $105.22
2018: $105.22 × (1 + 0.0185) × (1 + 0.0198) × (1 + 0.0198) ≈ $111.17
2019: $111.17 × (1 + 0.016) × (1 + 0.0223) × (1 + 0.014) ≈ $116.02
2020: $116.02 × (1 + 0.0165) × (1 + 0.0183) × (1 + 0.0125) ≈ $119.95
2021: $119.95 × (1 + 0.017) × (1 + 0.0223) × (1 + 0.0311) ≈ $128.44
2022: $128.44 × (1 + 0.039) × (1 + 0.0365) × (1 + 0.075) ≈ $158.56
2023: $158.56 × (1 + 0.0575) × (1 + 0.042) × (1 + 0.0733) ≈ $169.42
2024 Professional Musician Market Rate in NZ
Hourly Base Market Rate 2024: $169.42
Rounded to $170
The NZSC Experience Premium
This premium is added to the adjusted base rate, for services provided by the NZSC, to reward musicians for their years of experience, recognising the additional value and expertise they bring to their performances.
Experience Tiers:
0-3 Years Experience: +0%
4-9 Years Experience: +5%
10-15 Years Experience: +7.5%
16+ Years Experience: +10%
Hourly Earnings with Experience Premium:
0-3 Years Experience (+0%): $170.00
4-9 Years Experience (+5%): $178.50
10-15 Years Experience (+7.5%): $182.75
16+ Years Experience (+10%): $187.00
We fully understand the dynamics of the live music market and the rates currently being offered. Our rates are data-driven and reflect the true modern base rate.
By applying year-by-year adjustments for inflation, wage growth, and cost of living, the base rate has been accurately updated to $169.42 (rounded to $170) per hour for 2024. Professional musicians can use these data-based calculations as a baseline for their own rates. Adding an experience premium ensures fair compensation for musicians' expertise and years of practice. This comprehensive approach guarantees that musicians receive a wage that maintains their purchasing power, aligns with economic growth, and reflects their professional experience, ensuring fair and competitive compensation.
We will update this hourly rate annually to ensure an accurate representation of the live music market - providing a consistent baseline for professional musicians in New Zealand.
