Those awarded medals are to wear them on the left side of their chest over the heart, while those wearing them on behalf of family members are to wear them on the right.
Mr Hill encouraged people to wear medals so their family would "march with them" on Anzac Day.
"It is a time to remember those people who have served the country," he said.
Defence Force chief Lieutenant General Rhys Jones said it was great on Anzac Day to see so many people wearing to services the medals earned by their relatives.
"By doing so they are reinforcing their relative's mana and honouring their memory by wearing these medals on parade with their mates again," he said.
"We encourage this practice within the dress conventions agreed to.
"Serving members of the NZ Defence Force are also allowed to wear their deceased relatives' medals while in uniform on this day, under the same convention."
Anzac Day services will be held around the region tomorrow.
Conventions for wearing a relative's medals
- People should only wear one set of medals and they should be directly related to their family, for example, should have belonged to a brother or sister, dad or mum, grandfather or grandmother.
- In all cases these are worn on the right chest.
- Only service medals and decorations mounted on a medal bar (full-size or miniature) can be worn by a relative. It is perfectly acceptable for people to wear miniature medals mounted on a medal bar as the weight is far easier to handle.
- Royal Honours insignia such as neck badges, sashes, sash badges, or breast stars cannot be worn by anyone other than the original recipient. The same rule applies to any Unit and Personal Commendations that the deceased wore on their right chest.
- The occasions on which wearing of relatives' medals is permitted are confined to Anzac Day (April 25) and Remembrance Day (November 11). In addition, it may be appropriate for next-of-kin and other relatives to wear relative's medals on an occasion where either the relative's service or the unit in which they served is being commemorated.