Minimum wage to increase from 1 April

The Government has announced an increase in the minimum wage to $23.15 per hour from April 1, 2024.

This represents a 2% increase from the current minimum wage of $22.70 per hour. The rise is the smallest in a decade and is seen as a cautious move in response to the current economic situation.

Workplace Relations and Safety Minister Brooke van Velden said the government’s approach was to balance the protection of incomes for the lowest-paid workers while maintaining labour market conditions that encourage employment.

The increase is set against a backdrop of economic challenges, including a softening labour market, high net migration rates, constrained consumer spending, and subdued economic growth.

The training and starting-out minimum wages will also increase to $18.52 per hour, remaining at 80% of the adult minimum wage. This increase is expected to benefit between 80,000 and 145,000 workers in New Zealand.

The decision to raise the minimum wage was influenced by various factors, including the need to keep pace with inflation while also considering the impact on businesses and employment, said van Velden.

Image credit: Thomas Coker