Living wage to increase in September

Starting September 1, 2025, New Zealand’s Living Wage will increase by $1.15, bringing it to $28.95 per hour.

This change will affect employees and contractors who work for businesses that are officially certified as living wage employers.

This new rate is $5.45 more than the minimum wage, which rose to $23.50 per hour on April 1, 2025. The Living Wage is set by Living Wage Aotearoa NZ and is meant to reflect the amount a person needs to earn to cover basic needs like food, housing, and healthcare.

Currently, 342 businesses across different industries have agreed to pay the Living Wage. Gina Lockyer, who leads Living Wage Aotearoa NZ, said the wage helps workers “live with dignity” and better support their families. She explained that it can make a big difference for people trying to afford things like school uniforms or power bills.

At the same time, there’s a debate in government about whether to change the rules for companies that want to win government contracts. Finance Minister Nicola Willis wants to reduce how many rules businesses must follow. One rule that might be removed is the requirement to pay a Living Wage to certain workers, like cleaners and security staff, on new contracts.

Willis says the changes are meant to help more New Zealand businesses win government work and create local jobs. However, Lockyer worries that if the rule is removed, some workers will miss out on the new Living Wage and any future increases.

A recent poll showed that 62% of voters do not support removing the Living Wage rule from government contracts. Only 23% support the idea.