Workplace Relations Minister Michael Woodhouse said the increase will benefit nearly 153,000 workers, and increase wages throughout the economy by $75 million per year.
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Due to come into force from 1 April 2016, the minimum wage will soon sit at $15.25 an hour – up from $14.75.
He said the increase of 3.4 percent was set against inflation at 0.1 percent and would put more money in workers’ pockets.
The starting-out and training hourly minimum wages rates will increase from $11.80 to $12.20 per hour.
“The argument that always comes up is that raising minimum wages will cost jobs, but the evidence is increasingly for the exact opposite”.
“The government could have given a huge increase to the minimum wage which would have really helped low income people, reduced inequality and also actually kick-started the economy”.
Kiwi employers with a staff made up largely of low-paid workers will see their costs shoot up as the government confirmed an increase to the minimum wage earlier today. The amount represents the minimum rates for groups of wage earners who do not have the bargaining power to negotiate for fair wages.
“The PSA welcomes the increase in the minimum wage, because any increase for our lowest-paid members is a good thing”, National Secretary Glenn Barclay says.
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“Previous year when asked about the increase in the minimum wage, Mr Campbell called it nutty” and maintained that attitude when asked about the possibility of a hike late last month. “People give up a lot of time and make a lot of sacrifices to go to work and they should be able to live off that but the reality in New Zealand is it is no longer the case”, she says.
