Jacinda Ardern says she'll look at compensating businesses who are struggling with the rise of the minimum wage.
Under the coalition deal in April next year the minimum wage will go up by seventy-five-cents to $16.50 an hour, by April 2021 people on the minimum wage will get $20 an hour.
A small business owner in Nelson is worried the rise in wages will mean they have to raise prices and possibly let staff go.
"It'll always go back onto the consumer, so our prices will have to go up, so if we have clients we have clients, if we don't we don't," cleaning company owner Sarah Stewart told 1 NEWS.
The Prime Minister-elect is promising to look at models in places like Australia that offer tax breaks to small businesses to try and offset the cost.
"Low wages aren't simply a problem for low wage workers, they are a problem for businesses and the economy as a whole, I want to see an end to a race to the bottom on wages," Ms Ardern said today.
Employers are also concerned about changes to immigration - Labour and NZ First are yet to give details but say they will restrict numbers.
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