The New Zealand adult minimum wage has increased by $1.50 to align with the 7.2 percent of Consumer Price Index inflation for the year ended December 2022. The training and starting-out minimum wages will also both increase to $18.16 per hour to remain at 80 percent of the adult minimum wage.
“In tough times, it’s critical to support those who struggle the most to make ends meet. Those on low incomes make impossible trade-offs between food and medical care, dry homes and a pair of shoes. These families need our support now more than ever, and an inflation-adjusted lift in the minimum wage will mean thousands of New Zealanders do not go backwards,” said Prime Minister Chris Hipkins.
“We’ve tried to find the right balance. Analysis from MBIE that fed into our decision suggests this increase is unlikely to have a significant impact on unemployment, because it is broadly in line with existing average wage growth across the economy.
“The impact on inflation is negligible. In the 2022 Review, MBIE estimates that an increase of seven per cent in the minimum wage will have only a minor inflationary impact of 0.1 percent on the wages portion of GDP.”