Lowest paid set for yearly wage boost
New Zealand workers on the minimum wage are set for a significant pay rise.
The Government announced it would increase the minimum wage from the current $16.50 an hour to $17.70 an hour on April 1,
2019, with further increases to take it to $20 an hour by 2021.
Workplace Relations Minister Iain Lees-Galloway said the 2019 increase would mean an extra $48 a week before tax for minimumwage workers.
‘‘The Government is determined to improve the wellbeing and living standards of all New Zealanders as we build a productive, sustainable and inclusive economy,’’ he said.
‘‘A fair day’s work should equal a fair day’s wage.’’
In October 2017, the Government promised to raise the minimum wage to $20 within four years as part of its coalition agreement with NZ First.
Prime Minister Jacinda Ardern said the move had long been flagged by the Government.
‘‘This is just steps along the path. It’s important to acknowledge that at the moment we have very low unemployment at the moment and this will benefit over
200,000 New Zealanders.’’
The move was supported by Council of Trade Unions president Richard Wagstaff, who said the organisation ‘‘obviously supported and welcomed the increases’’.
‘‘For a vulnerable business . . . it could mean some job losses.’’
Kirk Hope, above, of BusinessNZ
However, Opposition leader Simon Bridges said the increase was ‘‘too far, too fast’’.
‘‘I acknowledge if you are there on minimum wage, you will welcome this,’’ Bridges said.
‘‘But I also think what is true is big increases over a period of time [are] too far, too fast for small businesses, for people who are unemployed and want to get a job, and for cost of living, which hits the pocket of all Kiwis.’’
Bridges said the wage increase would cause businesses to either let workers go or pass costs on to the consumer.
The announcement provided a blueprint for how the Government expected to roll out the wage increases. The rate will rise to $18.90 on April 1, 2020, and then $20 in April 2021.
Lees-Galloway said the pay rise would affect about 209,200 workers and their families. ‘‘About a quarter of those earning the minimum wage – 36,000 people – are parents,’’ he said.
Starting-out and training wages would also increase from $13.20 to $14.16 per hour from April 1, 2019, in order to stay at the legislated 80 per cent of the adult minimum wage.
BusinessNZ chief executive Kirk Hope said many businesses would not be affected as they already paid higher than the minimum wage.
‘‘But it could affect some vulnerable smaller businesses and startup businesses . . . For a vulnerable business already on the razor edge of profitability, it could mean some job losses.’’