The Government is confirming it will deliver on its commitment to raise the minimum wage to $20 per hour from 1 April
2021, Workplace Relations and Safety Minister Michael Wood announced today.
Michael Wood said as we recover and rebuild from COVID-19, the Government is committed to supporting New Zealanders by
“There are many Kiwis who earn the minimum wage that have gone above and beyond in our fight against COVID. I think
everyone agrees those who served us so well during lockdown – including supermarket workers, cleaners, and security
guards – deserve a pay rise.
“This minimum wage increase will lift the incomes of around 175,500 New Zealanders – which means $44 more each week
before tax for Kiwis working 40 hours a week on the minimum wage.
“The rise in the minimum wage is estimated to boost wages across the economy by $216 million, giving New Zealanders more
money to spend at local businesses. Increases to the minimum wage can also promote productivity, which is good for
“We’re taking a balanced approach and supporting both employees and employers through the pandemic. We’ll be providing
access to a Short Term Absence Payment to support employers to ensure their employees are able to follow public health
guidance while waiting for a COVID-19 test. In the event of COVID-19 resurgence, we have put in place a new Resurgence
Support Payment to help firms cover their fixed costs and committed to the Wage Subsidy Scheme for Alert Level 3 and
“Signalling the minimum wage increases over three years has helped give businesses much needed certainty. Next year I
will outline what changes we are intending to make in the coming years to give businesses time to plan ahead,” Michael
The starting-out and training minimum wages will also rise to $16.00 per hour, to remain at 80 per cent of the adult