New Zealand’s Minimum Wage Increases To $14 Per Hour

New Zealand‘s government has announced a 2 percent increase in the adult minimum wage, setting it at 23.15 New Zealand dollars ($14.12 USD) per hour starting from April 1.

This decision comes as the government aims to find a delicate balance between protecting the incomes of the lowest-paid workers and navigating the country’s changing economic landscape.

Workplace Relations and Safety Minister, Brooke Van Velden, revealed the increase on Thursday, emphasizing the government’s cautious approach amid significant economic shifts over the past year.

With the current low unemployment rate, the labour market is experiencing a softening effect due to factors such as high net migration rates, constrained consumer spending, and subdued economic growth.

The increase in the minimum wage to 72 percent of the median wage in June 2023, up from 62 percent in June 2017, reflects the government’s commitment to improving living standards for low-wage workers.

However, this substantial rise presents business challenges, making offering pay raises or hiring additional staff difficult.

The opposition Labor Party has criticized the wage increase as insufficient, labelling it as “tiny” and questioning its impact on the working poor.

Despite the criticism, Minister Van Velden defended the adjustment, stating it was made considering the current economic conditions and the need to maintain wage relativity with other earners.

Training wages and starting wages will continue to be pegged at 80 percent of the adult minimum wage rate, as the government navigates the complex interplay between wage growth and economic sustainability.