The New Zealand government confirmed it would deliver on its commitment to raise the minimum wage to 20 NZ dollars (14.26 U.S. dollars) per hour from April 1, 2021, Workplace Relations and Safety Minister Michael Wood said on Thursday.
As the country recovers and rebuilds from COVID-19, the government is committed to supporting New Zealanders by raising wages, Wood said.
“There are many Kiwis who earn the minimum wage that have gone above and beyond in our fight against COVID. I think everyone agrees those who served us so well during lockdown – including supermarket workers, cleaners, and security guards – deserve a pay rise,” he said.
This minimum wage increase will lift the incomes of around 175,500 New Zealanders, which means 44 NZ dollars more each week before tax for Kiwis working 40 hours a week on the minimum wage, Wood said.
The rise in the minimum wage is estimated to boost wages across the economy by 216 million NZ dollars, giving New Zealanders more money to spend at local businesses. Increases to the minimum wage can also promote productivity, which is good for businesses too, he said.
“Signaling the minimum wage increases over three years has helped give businesses much needed certainty,” the minister said.
The starting-out and training minimum wages will also rise to 16 NZ dollars per hour, to remain at 80 percent of the adult minimum wage.
