Minimum wage set to increase

Minimum wage is set to increase by 50c. File photo.

People working for minimum wage are set to get an increase in the pay packet.

Workplace Relations and Safety Minister Michael Woodhouse says the rate will rise by 50c to $15.75 from April 1 – and no, it's not an April Fools' joke.

The starting-out and training hourly minimum wage rates will also increase from $12.20 to $12.60 per hour, remaining at 80 percent of the adult minimum wage.

'The Government is committed to striking the right balance between protecting our lowest paid workers and ensuring jobs are not lost,” says Michael.

'An increase to $15.75 will benefit approximately 119,500 workers and will increase wages throughout the economy by $65 million per year.

'At a time when annual inflation is 0.4 per cent, a 3.3 per cent increase to the minimum wage will give our lowest paid workers more money in their pockets, without hindering job growth or imposing undue pressure on businesses.

'Annual increases to the minimum wage since 2009 reflect this Government's commitment to growing the economy, boosting incomes and supporting job growth throughout New Zealand.”

Labour Party Workplace Relations and Safety spokesperson Iain Lees-Galloway believes the minimum wage increase announced today will be cold comfort to thousands of New Zealanders struggling to pay their rent or mortgage.

'Fifty cents an hour simply is not enough to keep up with the enormous increases in housing costs that many New Zealanders currently face. A 3.3 per cent increase in wages is nothing when rents went up by 5.8 per cent last year and house prices rose by 12.5 per cent.

'The truth is that far too many New Zealanders are on the minimum wage and therefore utterly reliant on the Government to increase their income.”

Iain says National has repeatedly stripped away working people's rights to bargain for decent wages and has failed to make New Zealand economy more productive.

'That's why wages are so low in New Zealand and why nearly 200,000 working people are at the mercy of the Government setting their wages for them.

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4 comments

How Generous..

Posted on 24-01-2017 19:23 | By Me again

of these people. So does food, power, etc, etc, etc. get cheaper, HA I don't think so. Or do the govt. officials including councilors M.P., get just 50 cents for their pay rise I hardly think so. So it is still same ole, same ole.


Wow

Posted on 25-01-2017 00:02 | By namxa

$15.75 an hour. So that's $630 per week, or $32760 per year. Not much left after paying rent, power, food, etc, etc oh, and income tax.But the "average" New Zealand wage was apparently $1414 per week in the public sector in March 2016, or $73628 per year.Seems to me that none of the "average people" earn anywhere near the "average wage".Is $15.75 an hour supposed to be good? Should all those being taken advantage off and only receiving minimum wage be thankful? Is it just me or is something not adding up here? Economic slavery. Look it up.


National supports the least well off again

Posted on 25-01-2017 14:11 | By Ron

This is the minimum wage i.e. it might be earned by a school leaver sharing a house with three or four others. After tax annual income has gone up from from $19718 a year to $26684 a year since National took office i.e. an increase of almost 40%. After inflation that is an increase of almost 20% in 9 years. Very impressive.


Hmmm

Posted on 25-01-2017 16:16 | By Tgaboy

As someone who went to uni, got qualified and has a decent job I reckon my salary should go up by the same amount. Every time I get a rise it's because I have worked hard for it. It's not a given. To think that someone who gets a job straight out of school or off the dole is that bit closer to my earnings stinks! If you wanna be better off, invest in yourself.


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