Labour Minister Simon Bridges today announced the minimum wage is to rise from $13.50 to $13.75.
The training and new entrants' minimum wages will increase from $10.80 to $11, which is 80 per cent of the adult minimum wage.
'Setting these wage rates represents a careful balance between protecting low paid workers and ensuring jobs are not lost as the economic recovery gains pace,” says Simon.
'The Government is firmly focussed on growing the economy and boosting incomes. Through our Business Growth Agenda we are creating opportunities to help grow more jobs in New Zealand, for New Zealanders.”
The new minimum wage rates will come into effect on 1 April.
A new starting out wage for young people is also being recommended by a Parliamentary select committee.
A report by the Transport and Industrial Relations select committee is recommending a new law that will see some 16 to 19-year-olds paid a minimum of $10.80 an hour.
The Minimum Wage (Starting-out Wage) Amendment Bill was due to come into effect on April 1 but has been delayed a month until May 1 to allow more time to educate the public on the changes.
If passed, it will mean all eligible young people will be legally required to be paid 80 per cent of the minimum wage.
'A starting-out wage is an important initiative to give young people the foothold they need to enter the workforce,” says Simon
'It will give employers a real incentive to take on our youngest and most inexperienced workers and provide them with the skills and work experience they need.”
'I thank the select committee for their work. The changes may be technical in nature but they are an essential contribution to this important legislation.”
Three groups will be eligible unless they are training or supervising others.
They are; 16 and 17-year-olds in their first six months of work with a new employer; 18 and 19-year-olds entering the workforce after more than six months on a benefit; 16-to-19-year-old workers in a recognised industry training course involving at least 40 credits a year.
11 comments
If they can't afford bread let them eat cake
Posted on 26-02-2013 12:25 | By Phailed
Was that what Marie Antoinette said? I'm afraid a 25 cent an hour rise is pitiful compared to the large salaries and allowances conferred on politicians, CEOs and the flock of bureaucrats and spin doctors. One wonders what it cost the committee to come up with the recommendation?
Pathetic
Posted on 26-02-2013 12:43 | By lpm67
Cost of rent: up cost of food: up cost of fuel: up cost of electricity: up rates: up School costs: up do I need to go....the most vanerable in the country shafted again. Simon, dont expected to be elected again by your district...its the party list for you!
wow
Posted on 26-02-2013 13:35 | By welk
This must be a big wieght off a lot of peoples shoulders NOT By this time next year everyone should be up to date with their bills all debts paid off and away on holiday
whoop dee do
Posted on 26-02-2013 13:46 | By earlybird
break out the champagne, send out the invitations - 25 bucks an hour - oops, no - 25% increase - oops no - reach for the specs - 25 cents an hour increase - $10 a week more. When you consider how much some people in this country [formerly known as Shangri-la] are paid by comparison, then $10 a week is an insult. I'm waiting for someone in Wellington to come up with a plan to make life more equitable here in NZ. Imagine for a moment that there was nobody to do all of the low paid jobs. We would quickly learn which jobs are important & which are not.
well
Posted on 26-02-2013 13:53 | By dumbkof1
gosh thank you mr bridges what a fantastic rise i must remember not to spend it all in one shop
.
Posted on 26-02-2013 15:03 | By Diesel Dog
Lets put it up to $25 an hour and then we can all whinge about having to pay more for our products/services...oh, no wait we want to pay nothing for everything and expect everything for next to nothing... It does not mean that employers out there will pay minimum wage,I dont.I start untrained,unskilled people $3 an hour more than that...but then the consumer has to pay for for that too..at which point they cry it is all too expensive and so the cycle continues...nobody pleasing anybody.
$520 a year
Posted on 26-02-2013 15:28 | By Mr bay
That would be $520 a year for the employer to find, and spread that over a couple of employees then the money starts to add up for a small business. I know 13.75 isn't much but think of the emploer as well.....
Posted on 26-02-2013 17:52 | By Viking
The real question is; Why does the Govt. need to be onvolved in any wage setting at all? More jobs will go to Asia. Apparently plenty don't care if other Kiwi's, including 24% of young people are never employed. As along as its not them eh!
Mr Bay & Diesel Dog
Posted on 26-02-2013 17:55 | By earlybird
I don't disagree with your sentiment at all - in fact you are saying pretty well the same thing I am but from the other end so to speak. Your business struggles because too many of your potential customers are only earning low wages and can't afford whatever you are offering. It is a viscious circle which is my point exactly - why can't our very well paid MP's think of a workable solution. Too much of the money supply is in the hands of too few people. Communism went broke through lack of cash and competition and capitalism could be following the same way. If you want us to support your business you have to provide the means for this to happen [money]. I don't have the answer, you don't have the answer - let's just hope the somebody does have the answer. far too much greed around these days.
@ Mr Bay
Posted on 26-02-2013 18:56 | By Colleen Spiro
We have thought about the employer FOREVER in this town....Yes I appreciate that they struggle too, but at the end of the day, their employees deserve a quality of life too. Are they doomed to be poor for the rest of their lives and grateful for $10 a week rise, having to wait another 10 years for another 25cents?
Means
Posted on 27-02-2013 13:47 | By Capt_Kaveman
nothing if cost are going up by 5-6% food petrol power i guess will go up again soon what else is there that we need
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