Minimum wage set to increase next week, giving over 200,000 Kiwis a boost

March 27, 2019
New Zealand cash, money or currency. Notes and coins

The Government says that just over 200,000 Kiwis will get more in their pay packets on Monday as the minimum wage increase comes into effect.

The minimum wage will be increased by $1.20 an hour to $17.70.

The move has been lauded by Workplace Relations and Safety Minister Iain Lees-Galloway.

"On a 40-hour work week, this means an extra $48 a week before tax," he said. "This will make a real difference to low-income workers."

This increase will pave the way for further increases in the minimum wage, according to Mr Lees-Galloway.

"Lifting the incomes of Kiwi workers will contribute to improved living standards and reduce poverty. Our Government has committed to increasing the minimum wage to $20 by 2021."

Starting-out and training wages will also increase on Monday to $14.16 per hour to keep them at 80 per cent of the adult minimum wage.

The Opposition leader said the $1.20 increase was going to hit small and medium businesses.

National Party leader Simon Bridges has previously said the $1.20 per hour increase to the minimum wage is "too far, too fast", and will impact small and medium businesses.

"There'll be people out there that will say, 'fantastic', but it will have a real effect either in some job losses or cost of living increases for all New Zealanders.

"It affects all Kiwis right in the hip pocket," Mr Bridges said of the increases late last year.

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