New Zealand to raise minimum wage to NZ$21.20 from April

New Zealand is raising its minimum wage by 6% to NZ$21.20 (US$14.10) an hour, effective April this year. The government is also raising the starting-out and training minimum wage from NZ$16 (US$10.64) to NZ$16.96 (US$11.28). 

“Many Kiwis who earn the minimum wage have gone above and beyond in our fight against COVID-19. We remain committed to supporting New Zealanders by raising their wages, as we continue to recover and rebuild from the pandemic,” said Workplace Relations and Safety Minister Michael Wood in a statement. 

“For someone working a 40-hour week on the minimum wage, this increase will see them earning an extra $48 a week, and almost $2500 more each year,” Wood added. 

“The wage increase will also have a stimulatory effect on the economy as many workers will spend the extra money on goods and services, which in turn, will help support businesses,” he added.

READ: Trade union calls for raise of New Zealand’s minimum wage

Wood commented that the move struck the right balance between retaining the standard of living for low-wage workers and meeting the needs of businesses, according to RNZ news. 

“If we had a lower increase coming in or no increase as some business groups advised us we should do, that would mean our lowest income workers going backwards in terms of their standard of living,” he noted.