Pay rise for all Kiwis on the minimum wage

If you're on the minimum wage, next year your pay cheque will get a little larger.

The minimum wage will increase by 75 cents to $16.50 per hour on April 1, 2018, the Government announced on Friday. 

It's also promised to abolish starting-out rates within a year and will consider changes to the training wage.

It's the largest increase in the minimum wage since 2008.

According to the Government's figures, 164,000 workers will see increased wages.

Workplace Relations and Safety Minister Iain Lees-Galloway says the positives outweigh the negatives.

"We will continue to review the minimum wage each year, and economic conditions will be taken into account when setting the new rate of the minimum wage. 

"This consistency gives employers and employees certainty and minimises potential negative effects of increasing the minimum wage too sharply."

Until the Government abolishes the starting-out rate, it will remain at 80 percent of the minimum wage, along with the training wage.

In its coalition agreement with New Zealand First, Labour committed to raising the minimum wage to $20 an hour by April 2021. 

Between April 2014 and April 2017 the minimum wage increased by 50 cents a year, rising from $14.25 per hour to $15.75.