New Zealand to raise minimum wage to NZ$20 an hour from April 1

The minimum wage hike is set to increase the incomes of some 175,500 citizens who work 40 hours per week.
By: | December 22, 2020

The New Zealand government has announced that it will raise the minimum wage to NZ$20 (US$14.27) per hour from April 1 next year, in a bid to support its citizens as the nation recovers from the pandemic.

“There are many Kiwis who earn the minimum wage that have gone above and beyond in our fight against COVID. I think everyone agrees those who served us so well during lockdown – including supermarket workers, cleaners, and security guards – deserve a pay rise,” said Workplace Relations and Safety Minister Michael Wood at the announcement. 

“This minimum wage increase will lift the incomes of around 175,500 New Zealanders – which means $44 more each week before tax for Kiwis working 40 hours a week on the minimum wage,” he added. 

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“The rise in the minimum wage is estimated to boost wages across the economy by $216 million, giving New Zealanders more money to spend at local businesses. Increases to the minimum wage can also promote productivity, which is good for businesses too,” said the minister.  

Recent official data showed that New Zealand achieved an economic growth of 14% in Q3, a stark improvement from the 11% decline in the previous quarter when the country was in lockdown.