Living wage rise adds 90c an hour

The living wage has increased by 90 cents to $23.65 an hour. The new rate took effect yesterday.

The wage is designed to represent the amount of money required for workers to fully participate in society. It is voluntary but more than 300 New Zealand employers commit to paying at least that level.

The rate was $22.75 an hour last year and $22.10 in 2020. The rate of $23.65 is 68% of the average hourly earnings in New Zealand, which were $34.76 an hour for the 12 months ended in June 2021.

It is calculated by the Family Centre Social Policy Research Unit’s co-ordinator and lead researcher, Charles Waldegrave.

‘‘It’s important to ensure our lowestpaid workers can receive the benefits of economic growth, and that they are also supported to cover cost of living. This year’s increment of 90c per hour provides a 4% increase on June 2020,’’ he said.

The rate was announced on April 1 to give employers time to implement it.

Infometrics chief forecaster Gareth Kiernan said much of the increase would already have been swallowed by inflation.

He said there had been inflation of about 2.36% over the five months since the rate was set, compared with a 3.96% increase in the living wage.

A Gloriavale leaver born into the Christian community says she decided to leave when the community kept changing its values and beliefs to ‘‘cover their tracks’’.

Pearl Valor continued giving evidence on day four of the Employment Court hearing where it is alleged women were subject to sexual abuse as well as ‘‘slave-like’’ conditions from as young as 6 or 7.

Yesterday, Valor told the court, in Christchurch, she contemplated leaving the community for months leading up to May 2021 to give her daughter a better life, and took action after the community attempted to realign its commitment statement to protect itself from the law.

‘‘I couldn’t understand how God could just keep changing his mind when the shepherds decided. I wanted my daughter to have the choice in her life to go to university and to have an education I did not have.’’

Valor began working at the instruction of shepherds when she was a primary school-aged child, and left high school at 15 to begin working full-time for the community,