This April, New Zealand’s minimum wage will rise from $23.15 to $23.50 per hour, a 1.5% increase.
The change, announced by Workplace Relations and Safety Minister Brooke van Velden, will affect around 142,000 workers. Opinions on the increase are divided, with unions calling it inadequate and employers saying it reflects economic realities.
The Council of Trade Unions criticised the increase, saying it doesn’t keep pace with inflation and amounts to a pay cut in real terms. Acting president Rachel Mackintosh called the move “miserly” and unfair, arguing that evidence shows raising wages does not harm employment. Similarly, Green Party MP Teanau Tuiono said the increase fails to address rising rents and inflation, making it harder for workers to cope.
On the other hand, the Employers and Manufacturers Association described the change as reasonable. EMA head Alan McDonald praised the early announcement, which allows businesses more time to plan. In recent years, some wage hikes were announced with little notice, making budgeting difficult for employers.
The training and starting-out minimum wages will also rise slightly, from $18.52 to $18.80 per hour. For a full-time worker on the new minimum wage, the change adds about $14 per week before taxes.
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