The Government will increase the minimum wage to $20 from the start of April, Workplace Relations and Safety Minister Michael Wood announced today.
The increase on April 1, 2021, would see the minimum wage go up $1.10, from the current minimum wage of $18.90.
Wood said the Government is committed to supporting New Zealanders by raising wages during the Covid-19 recovery.
The incomes of around 175,500 New Zealanders would increase, with those working 40 hours a week on the minimum wage earning an additional $44 more each week before tax.
“There are many Kiwis who earn the minimum wage that have gone above and beyond in our fight against Covid. I think everyone agrees those who served us so well during lockdown – including supermarket workers, cleaners, and security guards deserve a pay rise,” Wood said.
The increase repeats changes made to minimum wage by the Government in the last three years.
The minimum wage went from $17.70 to the current rate of $18.90 last April, while in April 2019 the Government increased the minimum wage from $16.50 to $17.70 after increasing it by 75c in April 2018.
“Signalling the minimum wage increases over three years has helped give businesses much needed certainty. Next year I will outline what changes we are intending to make in the coming years to give businesses time to plan ahead,” Wood said.
Wood said Government was taking a “balanced approach” to supporting both employees and employers through the pandemic.
“We’ll be providing access to a Short Term Absence Payment to support employers to ensure their employees are able to follow public health guidance while waiting for a Covid-19 test,” he said.
“In the event of Covid-19 resurgence, we have put in place a new Resurgence Support Payment to help firms cover their fixed costs and committed to the Wage Subsidy Scheme for Alert Level 3 and above.”
The starting-out and training minimum wages will also rise to $16.00 per hour, to remain at 80 per cent of the adult minimum wage.
National’s workplace relations spokesperson Scott Simpson questioned the timing of the rise as businesses try to recover from Covid-19.
“It’s well known when there is an increase of this size to the minimum wage, that the price that is paid is fewer people being employed, and so yes we are concerned that this is not the right time to be increasing the minimum wage by such a high percentage,” Simpson said.
“Businesses around the country are struggling after an incredibly tough year during 2020, and it’s the National Party’s view that now is not the right time to be burdening struggling businesses with further costs of this size.”
SHARE ME