Minimum wage to increase
Workers earning the minimum wage will receive a pay rise of nearly eight per cent from March 2006.
The minimum adult wage, which applies to people over 18 years, will increase from $9.50 to $10.25 an hour from 27 March 2006, the largest increase since the Labour-led government came into office in 1999.
The minimum youth wage - for workers aged 16 and 17 years - will also increase by nearly eight per cent, from $7.60 to $8.20 per hour, to stay at 80 per cent of the adult minimum wage.
The minimum training wage will increase to the same rate.
The Minister of Labour Ruth Dyson maintains that 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.
The latest increase will benefit around 91,000 adult workers, most of whom are women, and around 10,000 youth workers. The Government believes that it can be made with confidence in the current economic and labour market conditions, without being at the expense of jobs.
The Minister of Labour reviews minimum wage rates annually for adults, youth and trainees, seeking submissions from a wide range of organisations, including employer, union, Pacific, Maori and women's groups. Ruth Dyson said the government's goal is for the adult minimum wage to reach $12 an hour by the end of 2008, if economic conditions permit.
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