The government has announced that the adult minimum hourly wage will rise 50 cents to $15.25 from 1 April.
MP Michael Woodhouse said the increase would directly benefit almost 152,700 workers, and would increase wages throughout the economy by $75 million per year.
The rise represents a 3.5 percent increase.
However, Labour Party leader Andrew Little said the increase was too little, too late.
He said that the increase would be around $18 a week in take-home pay and this is not enough to help pay increased rent and power costs.