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Minimum wage set to rise next year

on Thursday, 20 December 2018. Posted in Our News

Minimum wage set to rise next year

April 1st is the key date over the next three years for increases to the minimum wage. 

The Government has announced the minimum wage is set to rise to $20 by 2021. The first increase will come into effect from April 1st, 2019 moving from the current hourly rate of $16.50 per hour to $17.70 per hour. 

For approximately 200,000 workers nationwide this will mean an extra $48 in hand each week, before tax.

As part of the Labour Government’s coalition agreement with NZ First in 2017 it promised to increase the minimum wage to $20 within four years. 

Therefore the minimum wage will increase again on April 1st 2020 to $18.90 per hour and then to $20 in April 2021. 

Starting out and training wages will also increase from $13.20 to $14.16 an hour on April 1st next year. 

The rise of the minimum wage to $20 an hour in 2021 is just below of the current Living Wage rate of $20.55 an hour. However with annual reviews of the Living Wage rate we anticipate potential changes to the Living Wage would also be made by 2021. 

PN Personnel will update and remind businesses in the New Year as the first increase comes into effect.

 

Naomi Castles

Naomi Castles

Recruitment Specialist

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