Tomorrow’s increase in the minimum wage will cause additional difficulties in many businesses once the wage subsidy is discontinued, BusinessNZ says.

Employers are currently assisted by the wage subsidy in paying employees 80 percent of their usual wage.

Once the wage subsidy period finishes, employers will face an increase in wage costs at the same time as they are facing altered and reduced trading circumstances.

This will delay the trading and economic recovery from the Covid-19 emergency.

BusinessNZ recommends that all plans for minimum wage increases should be delayed for 9 months or until Covid-19 recovery is confirmed.

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