Auckland Council has voted in favour of the living wage for its staff.
More than 2000 staff across council and its organisations are set to receive the hourly wage of $20.20, around one-fifth of its total staff.
The policy comes in this year's budget which was voted in today.
The council’s 2015-16 annual report states just over 11,000 people are employed by the council and its council-controlled organisations, such as Auckland Transport and Watercare.
In the same report, 9360 staff members are reported to be employed full time.
The council has set a target of completing implementation by 2019, with the council calculating by that time the hourly rate will be $21, allowing for inflation.
The policy implementation will cost $1.9 million in the first year.
All staff will be paid at least $18 an hour from September.
It doesn't include contractors, and is being funded by savings within council.
"A living wage for council employees will help our lowest paid people to meet the high costs of living in Auckland and ease pressure on their families," Mayor Phil Goff said.
Living Wage Movement Aotearoa New Zealand said its set rate of $20.20 is the necessary wage for a worker to cover living costs and participate in the community,
The minimum wage set by the Government is $15.75 an hour.
The annual budget also includes a confirmed rate increase of 2.5 per cent for Auckland ratepayers.