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The minimum wage will increase to $15.25 an hour, from the current rate of $14.75, Workplace Relations Minister Michael Woodhouse has announced.
It will kick in on April 1.
"The Government has once again taken care to ensure the right balance has been struck between protecting our lowest paid workers, and ensuring jobs are not lost," says Mr Woodhouse.
"An increase to $15.25 per hour will directly benefit approximately 152,700 workers and will increase wages throughout the economy by $75 million per year.
"With annual inflation currently at 0.1 per cent, an increase to the minimum wage by 3.4 per cent gives our lowest paid workers more money in their pocket, without imposing undue pressure on businesses or hindering job growth.
"The Government has increased the minimum wage every year since coming to office, from $12 to $15.25. This is an overall increase of 27 per cent compared to inflation of around 11 per cent.
"Our steady increases to the minimum wage reflect the Government's commitment to growing the economy, boosting incomes and supporting jobs."
Today’s announcement is too little, too late"
Labour leader Andrew Little says today's increase is "too little, too late and will not alleviate the difficulties so many Kiwi workers are facing".
"A miniscule rise in the minimum wage of just $18 a week in take-home pay will barely cover rent rises and shows how little the Government cares about growing inequality in New Zealand," he said.
Mr Little says in the last 12 months, the average rent in New Zealand rose by $14 a week and $24 a week in Auckland, "showing what a drop in the bucket today's increase is".
He says Labour first called for a $15 minimum hourly rate seven years ago and "today we are just 25 cents above that".
"New Zealand was once an egalitarian society but we are creating a generation of working poor, Kiwis who hold down full-time work yet can't put food on the table for their families or afford a warm, dry house."
At the same time, Mr Little says, New Zealand has corporate salaries in the millions of dollars and is lagging behind Australia's minimum wage which is more than $3.50 per hour above the New Zealand rate. |
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