New Zealand Minimum Wage Will Rise to $23.15 on April 1st.

The minimum wage in New Zealand will rise by two percent on April 1 to 23.15 NZD (New Zealand dollars), or 14.12 USD (19,600 Naira), per hour.

Starting on April 1st, the minimum wage will rise by 2 percent, from $22.70 to $23.15.

Starting and training wages will rise to $18.52 at a rate equivalent to eighty percent of the minimum wage.

Workplace Relations and Safety Minister Brooke van Velden made the announcement in a statement, noting that a cautious approach to raising the minimum wage was necessary due to economic headwinds such as a softening labor market and high net migration.

“An increase to $23.15 will benefit between 80,000 and 145,000 workers and will give our lowest paid workers more money in their pockets, without hindering job growth or imposing unreasonable costs on businesses,” van Velden said.

“Moderate annual increases to the minimum wage reflect this government's commitment to growing the economy, boosting incomes and supporting job growth throughout New Zealand,” she said.

“The increase announced today takes into consideration the current economic conditions and the historically large increases to the minimum wage that have distorted relativities with other wage-earners.”

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When compared to other OECD countries, Van Velden said that New Zealand had one of the most generous minimum wages when compared to the median wage.

The previous Labour government claimed the increase in the minimum wage last year would have a “negligible” effect on inflation. The minimum wage was raised by $1.50 an hour.

Van Velden, however, took issue with Labour's actions, claiming that the increases in the minimum wage made under the Labour government “far outstripped CPI.”

It is legally mandated that the minister of workplace relations and safety conduct an annual review of minimum wages.

In its review, the Ministry of Business, Innovation, and Employment recommended raising the wage by 4% to $23.60. This increase was anticipated to affect the earnings of approximately 164,400 workers and result in a $145 million increase in the wage bill for the entire economy.

“This increase option is estimated to produce no restraints on employment in 2024, therefore meeting the objective relating to job losses. It also roughly protects the real current value of the minimum wage as it approximately matches Treasury's and RBNZ's forecast CPI inflation rate for the March 2024 quarter (4.3 percent).”

The coalition agreement between ACT and National did not include the party's campaign promises of eliminating the 2 January public holiday, rolling back new sick leave entitlements, and freezing the minimum wage for three years.