Minimum wage to go up to $17.70

31 March 2019

The right time to lift the wages of our lowest paid New Zealanders.

The minimum wage will increase to $17.70 an hour this Monday 1 April; an increase of $1.20 an hour.

Up to 209,200 New Zealanders, including Pacific families will benefit from the pay boost.

For a 40-hour working week, this means an extra $48 a week before tax and will make a real difference to low-income workers.

Results of the 2017/18 Statistics NZ’s Household Economic Survey showed that a third of people said their current household income was either not enough or only just enough to meet their everyday needs.

The starting-out and training wage rates also increase this Monday to $14.16 per hour, in order to remain at 80 per cent of the adult minimum wage.

To provide businesses and workers with greater certainty, the Government has indicated minimum wage rates of $18.90 are to come into effect on 1 April 2020 and $20 to come into effect on 1 April 2021. These indicative rates are subject to each year’s annual review, in accordance with the statutory process, which will take into account the economic conditions at the time.

In October 2017, the Government promised to raise the minimum wage to $20 within four years as part of its coalition agreement with NZ First.

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