A new wage option is now on the table after the Minimum Wage Amendment Bill passed its third and final reading in Parliament last night.

Tauranga MP Simon Bridges says employers will have a real incentive to give young people a foothold into work with the passage into law of the starting-out wage.

From May 1, 16-to-19-year-olds can be paid 80 per cent of the minimum wage for six months under the new Minimum Wage Amendment Bill.

The Bill enables the starting-out wage to be an option for employers and employees from May 1.

Simon says it's in everyone's interests to make sure young people are given a helping hand into work.

'Employers should consider using the starting-out wage to give our youngest and most inexperienced workers the break they need to get into the job market, and start building their skills and work experience.

'Young people who don't successfully move into work or who are unemployed for prolonged amounts of time face a real risk of long-term unemployment if no action is taken.”

Under the starting-out wage, eligible 16-to-19-year-olds can be paid 80 per cent of the minimum wage for six months or for as long as they are undertaking recognised industry training of at least 40 credits per year.

The starting-out wage sits alongside other government initiatives aimed at helping more young New Zealanders into work or training, including Work and Income's Job Streams.

When introduced, the starting-out wage will be $11, 80 per cent of the minimum wage.

The minimum wage is currently $13.50 and will rise to $13.75 on April 1.

Three groups will be eligible unless they are training or supervising others:

· 16 and 17-year-olds in their first six months of work with a new employer

· 18 and 19-year-olds who have been paid a benefit for six months or longer, and who have not completed six months of continuous work with any employer since starting on benefit

· 16-to-19-year-old workers in a recognised industry training course involving at least 40 credits a year.