New Zealand workers on the minimum wage are set for a significant pay rise.

Today the Government announced that the minimum wage will increase to $17.70 an hour on April 1, 2019 – an increase of $1.20 per hour. For a full-time worker this will mean an extra $48 a week before tax.  The current minimum rate is $16.50.

This means the starting-out and training wages will increase from $13.20 to $14.16 per hour from April 1, 2019, in order to stay at 80 per cent of the adult minimum wage.

They are indicating minimum wage rates of $18.90 to come into effect on April 1, 2020 and $20 to come into effect on April 1, 2021. These indicative rates are subject to each year’s annual review, in accordance with the statutory process, which will take into account the economic conditions at the time.