Confirmed: Kiwis on minimum wage get a pay rise

Workplace Relations Minister Iain Lees-Galloway and Prime Minister Jacinda Ardern.
Workplace Relations Minister Iain Lees-Galloway and Prime Minister Jacinda Ardern. Photo credit: Getty

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

The minimum wage will increase by $1.20 to $18.90 on April 1, 2020, the Government confirmed on Wednesday.

Training wages will also get a boost, rising to $15.12 per hour.

According to the Government's figures, 242,000 workers will see increased wages.

Workplace Relations and Safety Minister Iain Lees-Galloway said Kiwis will be better off.

"The new $18.90 rate will mean an extra $48 per week before tax for Kiwis who work for 40 hours on the current minimum wage.

"New Zealand's economy currently has a solid footing."

The starting-out rate has also increased to $15.12 - remaining at 80 percent of the minimum wage.

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

"With our economy doing well, we want to make sure that our lowest paid workers also benefit," Lees-Galloway said.

"The rise in minimum wage is estimated to boost wages by $306 million a year across the economy."

ACT leader David Seymour said the boost will cut job growth, adding New Zealand already has the highest minimum wage in the developed world.

"Government's can't force businesses to pay workers more than they are worth," he said.

"A higher minimum wage will also raise the cost of living for consumers and disadvantage retailers by providing a Christmas gift to offshore online retailers."

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