Headline: Minimum wage to increase to $14.75
Workplace Relations and Safety Minister Michael Woodhouse today announced the adult minimum wage will increase from $14.25 to $14.75 an hour from 1 April.
The starting-out and training hourly minimum wages will increase by 40 cents to $11.80 an hour, as this is set at 80 per cent of the adult minimum wage.
“The Government has taken great care in setting these wage rates to ensure we maintain the balance between protecting our lowest paid workers and ensuring jobs are not lost,” says Mr Woodhouse.
“$14.75 per hour is an appropriate increase given current economic and labour market conditions. It balances the needs of both businesses and workers whilst having minimal impact on the wider labour market.
“While annual inflation is currently at 0.8 per cent, we are increasing the minimum wage by 3.5 per cent which will directly benefit 115,100 workers and increase wages throughout the economy by $60 million per year.
“An increase of the minimum wage to $14.75 ensures there is no restraint on jobs while still increasing the incomes of the lowest paid. A higher increase to even $15.50 would constrain employment growth by up to 5,000 jobs per year.
“The Government’s annual increases to the minimum wage reflect our commitment to growing the economy, boosting incomes, and ensuring there are opportunities to help grow more jobs for all in New Zealand.”