Minimum wage to rise
UPDATE: BusinessNZ chief executive Kirk Hope says the wage hike won't lead to job losses.
The government is to raise the minimum wage by 50c to $15.75 an hour from April 1.
The starting-out and training hourly minimum wage has also been hiked and will increase 80c an hour to $12.60.
Workplace Relations and Safety Minister Michael Woodhouse says the increase will benefit approximately 119,500 workers and will increase wages throughout the economy $65 million a year.
“The government is committed to striking the right balance between protecting our lowest paid workers and ensuring jobs are not lost,” he says.
The increase, which works out to be 3.3%, is well ahead of annual inflation, which, as of the third quarter of last year, was just 0.4% a year.
Mr Woodhouse says the wage hike will give New Zealand’s lowest paid workers more money in their pockets, without hindering job growth or imposing undue pressure on businesses.
Last year, the government raised the minimum wage by 50c to $15.25 and the year before it raised it from $14.25 to $14.75.
BusinessNZ chief executive Kirk Hope says it’s not surprising the government made the call to hike the minimum wage.
He says every year the government is required to review the minimum wage.
The government has to take into account is the gap between average wage and minimum wage and that’s one of the reason the 50c increase was higher than inflation, Mr Hope says.
“Employers are comfortable paying employees $15.75 an hour won’t lead to job losses.”
He says the wage increase probably won’t trigger employees on higher wages asking for a wage hike either.
“Those being paid the increase are at the bottom level so it isn’t necessarily a trigger that is going to push through into widespread pay increases.”
Jason Walls
Tue, 24 Jan 2017
Tue, 24 Jan 2017
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Minimum wage to rise
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