The Government has announced it will increase in the minimum wage by 75 cents to $16.50.
The increase will be a 4.8 per cent increase on the current minimum wage of $15.75.
The base pay rate will increase by 75 cents to $16.50 an hour from April next year. (Source: Other)
Minister for Workplace Relations and Safety Iain Lees-Galloway says the hike in minimum wage reflects the government's desire to see all workers get a "decent benefit from a growing economy".
The increase in minimum wage was part of the coalition government's 100 day plan and will come into force on April 1 next year.
The incoming PM says she'll look at compensating businesses who are struggling with the rise of the minimum wage. (Source: Other)
"I'm delighted that in time for Christmas 164,000 Kiwi workers at the lowest pay grade can look forward to a lift in their conditions," he said.
Mr Lees-Galloway says the increase will benefit 164,000 workers and should increase wages throughout the economy by $129 million per year.
"We will continue to review the minimum wage each year, and economic conditions will be taken into account when setting the new rate of the minimum wage.
"This consistency gives employers and employees certainty, and minimises potential negative effects of increasing the minimum wage too sharply."
The government hopes to further increase the minimum wage to $20 by 2021.
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