Government increases minimum wage from NZ$12.75 to NZ$13, effective April 1

See the announcement from Minister for Labour Kate Wilkinson

The Government has increased the minimum wage from $12.75 to $13, Minister of Labour Kate Wilkinson announced today.

The training and new entrants’ minimum wages will increase from $10.20 to $10.40.

“This Government’s focus when reviewing the minimum wage over this term has centred on the need to protect jobs while ensuring a fair wage.

“Since being elected, we have raised the minimum wage by $1 – which equates to $40 a week,” Ms Wilkinson says.

“The 25c increase in conjunction with last year’s tax cuts ensures that workers on the minimum wage have maintained the buying power of their wages.

“Taking a careful and balanced approach has helped prevent workers from being priced out of the market.

“The Government is intent on boosting jobs and creating an environment that is conducive to economic growth.”

The new minimum wage rate will come into effect on April 1, 2011.

Here is the response from Labour:

John Key’s pathetic and insulting increase of 25c an hour in the minimum wage is another cruel blow for our most vulnerable Kiwi families, says Labour Deputy Leader and Social Policy spokesperson Annette King.

“People need a living wage,” Annette King said. “Last year John Key gave himself a tax-cut of more than $1000 dollars a week, but our poorest workers are being offered a derisory sum to cope with the sharply-rising cost of living.

“That puts National government priorities in devastating perspective. While wealthy New Zealanders are creaming it, thanks to National, Kiwis on the minimum wage won’t even be able to afford to buy an extra litre of milk a day for their families, or even a  block of cheese each week.

“It was announced last week that wage earners finished last year worse off than they started, with average wage increases only half the level of increases in prices,” Annette King said.

“John Key promised that most Kiwis would be better off under National. That’s rubbish. 
Most workers are losing ground, not gaining it, while his rich mates have never been happier.

“Kiwi families face soaring increases in food prices, power prices, petrol prices, rising early education costs and government charges,” Annette King said. ”Those on the minimum wage have little or no hope of coping.

“That’s why Labour believes that some relief for families is vital. That’s why we’ll lift the minimum wage to $15 an hour by the end of our first term. That’s why we will cut the full 15  percent GST from fresh fruit and vegetables and rebalance tax cuts that gave little to struggling middle income earners but richly rewarded those at the top.

“The gap between the top and the bottom in New Zealand is careering out of control, and simply can’t continue in the way it is under these policies,” Annette King said.

“Minimum wage earners often work in jobs like looking after the elderly in rest-homes and cleaning our hospitals. A decent society would look after them in return.”

(Updates with response from Labour)