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Minimum wage will rise to $16.50 an hour next week, but not everyone is convinced

March 23, 2018

Person counting currency — (Source: Te Karere)

The minimum wage increase to $16.50 an hour will come into effect next week, but not everyone is celebrating, with one government agency saying the rise could cost the economy 3000 jobs.

Labour made a minimum wage rise one of its core campaign messages and it will go into effect on April 1.

However, officials from the Ministry of Business, Innovation and Employment have warned raising the minimum wage may have negative employment impacts.

"The estimated restraint on employment for a minimum wage of $16.50 is 3000," part of the ministry's regulatory impact statement said.

They also warned of "lower job growth and reduced work hours" after the increase.

The increase will be a 4.8 per cent increase on the current minimum wage of $15.75.

New Zealand Economy

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