New Zealand Minimum Wage Boost

The minimum wage in New Zealand will increase by 9.8 percent to $11.25 an hour (£3.95 per hour at current rates) in April 2007.

110,000 adult workers who are paid the minimum wage will benefit from the rise immediately.

The youth minimum rate, for workers aged 16 and 17 years, will increase from $8.20 an hour to $9.00 an hour (£3.15 per hour at current rates), to stay at 80% of the adult minimum wage.

“The boost in the minimum wage will ensure that lower paid workers share the benefits of economic growth, encourage people to join the workforce and provide protection for some of New Zealand’s most vulnerable workers,” a spokesperson for the government commented.

“With four months till the changes come into effect, businesses will have time to prepare. The date of 1 April was chosen to reduce compliance costs for businesses as it will coincide with the implementation date of four weeks’ annual holidays.”

The government intends that the adult minimum wage will increase to $12 an hour (£4.20 per hour at current rates) by the end of 2008.