He said the review was an opportunity to "refine and strengthen our key national qualification for young people leaving school, and to ensure that NCEA remains relevant in the modern world".
"The Government is committed to delivering a future-focused education system that equips students with skills and knowledge to be globally competitive."
He added that students and teachers had said overassessment was a "real issue" that affected their well-being and workload.
"This and the importance of teaching life skills in schools, such as resilience, creativity, communication and adaptability, will form part of the review."
The Ministry of Education will run the review. Interested groups would be consulted and all New Zealanders will have the opportunity to comment and contribute.
"I will also establish a ministerial advisory group of innovative thinkers, who can challenge traditional thinking on senior secondary education and assessment, to lead the initial phase of the review with a discussion document for public consultation in April 2018," Hipkins said.
"I am also keen to hear from young people who are working towards an NCEA. I have set up a youth advisory group and will be seeking their insights early on in the process, and I want other students to contribute as well during the wider public consultation phase."
The terms of reference and the cabinet paper Reviewing NCEA are available at www.education.govt.nz/ncea-review.