From 1 April, the so-called “living wage” will rise to $29.90 per hour, up 95c from the previous $28.95.
The living wage figure is produced by the Family Centre Social Policy Unit and promoted by Living Wage Aotearoa NZ, a coalition of unions, faith groups, and community organisations.
Coalition chairperson Muriel Tunoho said, “Right now, in a cost-of-living crisis that seems to be getting worse every day, the living wage is needed more than ever.”
“Low-paid workers are struggling to keep their heads above water and to cover the absolute basics like rent, power, and kai.”
More than 340 employers have voluntarily signed up as Living Wage Employers. However, there is no legal requirement for businesses to pay above the minimum wage, which remains $6 lower than the living wage.
The recent living wage increase is double the rise in the minimum wage, which will climb to $23.95 on Wednesday—an increase that still lags behind inflation.
Living Wage lead organiser Finn Cordwell said the higher rate would allow struggling families to “live a life of dignity,” claiming this is not possible on the minimum wage. He urged the government to consider whether anyone in Cabinet could survive on $23.95 an hour.
Employers who have committed to the living wage have until 1 September to implement the new rate.