New Zealand’s living wage rate will increase by $2.35 or 9.9% on the 2022/23 rate to $26 per hour, reflecting recent increases in the cost of living and the needs of families. A full-time worker who earns the new living wage rate will now be paid $54,080 before tax annually. The living wage is recalculated every five years, with adjustments in other years linked to the average hourly wages in New Zealand. Accredited living wage employers will pay the new rate by September 1, 2023.
According to Rev Stephen King, the chair of the Living Wage Movement, this increase ensures that the living wage will continue to address in-work poverty and provide greater security and well-being for working people. The Living Wage Movement has observed increased hardship in the community due to rising costs and pressures on low-wage workers. The increase in the living wage rate means that workers at accredited living wage employers will earn at least $3.30 more than the minimum wage, which is currently $22.70 an hour.
Rose Kavapalu, a cleaner who is paid the living wage, said the increase to $26 an hour would allow her to reconnect with her family. She stated that the living wage might feel like 5 cents to some people, but to her and her family, it means finally living a life. Accredited living wage employers will pay the new rate, which will affect over 370 employers, by September 1, 2023. Environment Canterbury (ECan) is the latest accredited living wage employer, and it has become the first regional council to achieve this status. ECan Chair Peter Scott expressed his pride in the achievement, stating that paying a living wage is the right thing to do for employees and contracted providers.
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