The government's new minimum wage policy comes in to force this week which will see workers in the lowest pay grade receive just under $17 per hour.

The minimum wage will go from $15.75 to $16.50; the government hopes to have it reach the living wage of $20 by 2021.  

While some business owners fear that their businesses will suffer from the wage rise, the rise has garnered mainly support from employers and employees alone.

Employment Minister Willie Jackson says that while groups pushing for a living wage should be commended, it's difficult to achieve.

“E uaua ki te whakarahi te minimum wage i tēnei wā. Engari, kei te tino tautoko i ngā tangata i tautoko i tēnei kaupapa i te living wage.”

The minimum wage will rise this Sunday.