New Zealand’s Workplace Relations & Safety Minister, Brooke van Velden recently announced the adult minimum wage rate will increase by 2% to NZ$23.15 an hour from 1 April 2024.
Her announcement noted: “The economy has changed significantly over the past year – while unemployment is currently low, the labour market is softening due to high net-migration rates, constrained consumer spending and subdued economic growth. Given these economic headwinds, a cautious approach to the minimum wage is required this year.
“As a ratio to the median wage, the minimum wage has increased from 62% of the median wage in June 2017 to 72% in June 2023. This has made it harder for businesses to issue pay rises or take on more staff.
“An increase to $23.15 will benefit between 80,000 and 145,000 workers and will give our lowest-paid workers more money in their pockets, without hindering job-growth or imposing unreasonable costs on businesses.
“Increases to the minimum wage under Labour far-outstripped CPI. Between June 2016 and June 2023, the minimum wage increased at nearly twice the rate of inflation, with a 48.8% increase in the minimum wage and a 25.1% increase in CPI.
“The increase takes into consideration the current economic conditions and the historically large increases to the minimum wage that have distorted relativities with other wage-earners.”
Training wages and starting wages will remain at 80% of the adult minimum wage rate, thereby increasing to $18.52.