Minimum wage rise confirmed for April

The minimum wage will rise to $18.90 an hour from April 1, the Government has confirmed.

Workplace Relations and Safety Minister Iain LeesGalloway said it would mean a quarter of a million workers were better off next year. ‘‘The new $18.90 rate will mean an extra $48 per week before tax for Kiwis who work for 40 hours on the current minimum wage,’’ he said.

‘‘New Zealand’s economy currently has a solid footing. Our unemployment rate is low at

4.2 per cent, our economy is predicted to add 43,600 jobs in

2020, and our GDP is growing at a faster rate than other OECD nations, including Australia, Canada, the USA and European countries. With our economy doing well, we want to make sure that our lowest-paid workers also benefit. The rise in minimum wage is estimated to boost wages by $306 million a year across the economy. That is a good investment in local economies where workers spend their wages.’’

Lees-Galloway said it reconfirmed

Workplace Relations Minister

the rates signalled in 2018 and the Government’s plan for a $20 minimum wage in 2021.

The starting out and training wages will also get a boost, with a rise to $15.12 per hour, or 80 per cent of the adult minimum wage.

Council of Trade Unions president Richard Wagstaff said: ‘‘We are thrilled this Government is taking active steps to improve the lives of working people by ensuring the lowest paid are getting an increase ... There are other tangible steps the Government should take ... these include the introduction of fair pay agreements and enhanced protections for those working as contractors.’’

Security guard Lavinia Kafoa is paid minimum wage and said the rise would make a lot of difference to her household. ‘‘For my family, being on minimum wage means I spend many more hours at work than with my boys at home. I explain to them that mum has to work more hours to earn more money so we can afford everything we need.

‘‘It is a struggle to keep up with all the rising costs, especially rent.’’

E tu¯ union assistant national secretary Annie Newman said: ‘‘We are very pleased the Government has kept to their commitment of significant increases to the minimum wage.

‘‘However, we are still waiting for the Government to deliver on some of their other promises. In the 2017 election campaign, all three coalition partners committed to paying the living wage to all core government workers, including those employed by contractors. Time is running out to deliver the living wage for the people who need it most.

‘‘Many thousands of workers on low wages are exploited by the contracting model, which sees businesses in a ‘race to the bottom’ – paying low wages to stay competitive. Fair pay agreements would put a stop to that by setting minimum standards bargained by unions and employers.’’

The rise ... is estimated to boost wages by $306 million a year across the economy. Iain Lees-Galloway