The living wage will be increasing by 60 cents in September, from $20.55 to $21.15 per hour.
The Living Wage Movement Aotearoa New Zealand made the announcement on Monday, the same day the minimum wage rose from $16.50 to $17.70 per hour.
- Teachers wonder how min wage increase will be paid for
- Minimum wage boost: Employment expert's warning to employers
- 'Hairy-ass teenagers' living at home don't need living wage - Mark Richardson
The group says the rise in Living Wage will be beneficial to many New Zealand families.
"The Living wage is defined as the income necessary to provide workers and their families with the basic necessities of life. A Living Wage will enable workers to live with dignity and to participate as active citizens in society."
The last rise was in April 2018, from $18.40 per hour to $20.20 per hour.
The Living Wage is reviewed each year, and the group says this year's 60c rise is in line with the movement of the average wage.
It is not required that employers pay their workers the living wage, but companies such as Westpac, Seashore Cabaret and other small businesses do, and have been labelled "ethical employers" by the Living Wage Movement.
Monday's minimum wage rise is the biggest increase to minimum wage ever enacted at once, as the Government plans to increase it to $20 per hour by 2021.