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The minimum wage will go up 50c to $14.25 an hour from April 1 this year, Prime Minister John Key said this afternoon.
The increase is ahead of expectations of a 25c rise but remains well short of the $18.80 an hour living wage campaigners say is needed to feed two adults and two children in New Zealand.
The Starting-Out and training minimum wages will increase from $11 an hour to $11.40 an hour, which is 80 per cent of the adult minimum wage.
Mr Key said advice considered by Cabinet when it made its decision today was that the increase would result in a "relatively negligible" loss of jobs.
However that advice also said a rise to $14.50 an hour would result in the loss of about 2300 jobs.
Labour Minister Simon Bridges said the 50c rise balanced the needs of businesses and workers.
"Setting these wage rates represents a careful balance between protecting low paid workers and ensuring jobs are not lost." |
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