
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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