Hon Ruth Dyson
Minister of Labour

27 March 2006 Media Statement

Minimum wage rise comes into effect

More than 100,000 New Zealand workers will benefit from increases to minimum wage rates which comes into effect today, says Minister of Labour Ruth Dyson.

“Increases to the adult, youth and trainee minimum wage means workers receiving the minimum wage will get an 8 per cent increase to their hourly wage rate,” she said.

“The minimum adult wage, which applies to people over 18 years, will increase from $9.50 to $10.25 per hour.

“The minimum youth wage, for workers aged 16 and 17 years, will increase from $7.60 to $8.20 per hour, to stay at 80% of the adult minimum wage. The minimum training wage will increase at the same rate as the youth wage.

“Changes to the minimum wages are part of a wider approach to assist New Zealanders to have higher quality working lives - which includes those people who get paid the least for the hours they work.

“These approaches include work underway on workplace productivity, promoting work-life balance, the Working for Families package, initiatives around skill and labour shortages, and work to promote pay and employment equity,” says Ms Dyson.

The review has considered a range of options for changes to minimum wages, with submissions sought from a wide range of organisations including employer, union, Pacific, Maori and women’s groups.

The Government’s goal is for the adult minimum wage to reach $12 an hour by the end of 2008, if economic conditions permit.

For more information on the wage increases, employers and employees can contact the Department of Labour at www.ers.dol.govt.nz or 0800 20 90 20.

ENDS

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