People on the minimum wage are to receive a 50 cents an hour pay rise on April 1, says Workplace Relations and Safety Minister Michael Woodhouse today.

The starting-out and training hourly minimum wages rates will increase from $11.80 to $12.20 per hour, remaining at 80 per cent of the adult minimum wage.

'The Government has once again taken care to ensure the right balance has been struck between protecting our lowest paid workers, and ensuring jobs are not lost,” says Michael.

The increase to $15.25 per hour will directly benefit approximately 152,700 workers and will increase wages throughout the economy by $75 million per year.

'With annual inflation currently at 0.1 per cent, an increase to the minimum wage by 3.4 per cent gives our lowest paid workers more money in their pocket, without imposing undue pressure on businesses or hindering job growth,” says Michael.

'The Government has increased the minimum wage every year since coming to office, from $12 to $15.25. This is an overall increase of 27 per cent compared to inflation of around 11 per cent.

'Our steady increases to the minimum wage reflect the Government's commitment to growing the economy, boosting incomes and supporting jobs.”

Opposition leader Andrew Little says it's too little too late.

A miniscule rise in the minimum wage of just $18 a week in take-home pay will barely cover rent rises and shows how little the Government cares about growing inequality in New Zealand, says Andrew.

'In the last 12 months the average rent in New Zealand rose by $14 a week, $24 a week in Auckland, showing what a drop in the bucket today's increase is. Labour first called for a $15 minimum hourly rate seven years ago – today we are just 25 cents above that.

'New Zealand was once an egalitarian society but we are creating a generation of working poor, Kiwis who hold down fulltime work yet can't put food on the table for their families or afford a warm, dry house.

'At the same time we have corporate salaries in the millions of dollars and we are lagging behind Australia's minimum wage which is more than $3.50 per hour above the New Zealand rate.

'Today's announcement is too little, too late and will not alleviate the difficulties so many Kiwi workers are facing. Labour believes in a decent pay for a good day's work, one that allows workers to support their families, and help them achieve the Kiwi dream.”