Minimum wage NZ

Prime Minister Chris Hipkins announced on Wednesday that it would rise by $1.50 to $22.70 an hour from April 1. The Starting-Out and Training minimum wage rates ...

But economist says it would have been 'unconscionable' not to increase the wage by the rate of inflation.

But if private sector wage increases otherwise keep the pace that they had had in the last quarter of last year, a minimum wage of $22.70 would be 61.2% of the average. Last year saw an increase, but one that was outstripped by private sector wage increases – the minimum wage increased to $21.20, but was then only 60.3% of the average wage. “That could be a problem if the Reserve Bank’s moves to fight inflation lead to an economic downturn. With average wages growing 7.2% a year in 2022, the increase to the minimum wage ensure those earning the lowest move ahead too.” But it may impose a lot of difficulty in places where labour markets are less tight, and it would impose harm on vulnerable workers who employers may find to be too risky. Small to medium businesses are the ones that struggle.” Increasing the minimum wage relative to prevailing wages would be risky if we are going into a downturn.” What tends to happen is that it gets extrapolated through the business because you have to keep the wage relativity. There were 98,766 people on the Jobseeker – Work Ready benefit at last count, or about 3.2% of the working age population. He said retail businesses were already under pressure and this could be “one more straw on the camel”. With all the additional costs that businesses have had, with the supply chain, I think it does put the pressure on.” “I know they say it doesn’t have an impact on inflation but it’s gone up year-on-year.

NZ PM Hipkins has announced that minimum wages will increase in line with inflation. US Biden's commentary to protect US sovereignty from China might trigger US ...

The recent run of data, especially out of the US, questions whether the Fed needs to cut rates at all. Cosmos price continues to display strength as the uptrend seems unfazed by investors who may be taking profit off January's 70% gain. Gold price is attempting another run toward the $1,900 this Wednesday, building on its recovery from four-week troughs of $1,860. GBP/USD fades the previous day’s rebound from a monthly low around 1.2050 heading into Wednesday’s London open. The author makes no representations as to the accuracy, completeness, or suitability of this information. The author has not received compensation for writing this article, other than from FXStreet. Also, the yields generated by 10-year US Treasury bonds have dropped near 3.65%. S&P500 futures appear subdued at the press time but could turn volatile as more taxes on investors could trigger a sell-off. US President sounded tough on China, citing, “If China threatens US sovereignty, US will act to protect the country.” Therefore, even a minor upside trigger to the inflation rate could create significant troubles for the He claimed that a rise in the minimum wage would have a small inflation impact. The Kiwi asset has not reacted much to the announcement by novel New Zealand Prime Minister Chris Hipkins that minimum wages will be increased in line with the Consumer

The minimum wage is set to increase by $1.50 an hour with the government saying the impact on inflation will be "negligible". Prime Minister Chris Hipkins ...

Dairy prices are now marginally higher than ... Dairy auction prices posted a solid lift overnight. The 0.25 percentage ... WE DON’T KNOW HOW LONG IT’S GOING BE.” - BLOOMBERG NEWS - https://t.co/wXVagA44VK The minimum wage is set to increase by $1.50 an hour with the government saying the impact on inflation will be "negligible". -

Prime Minister Chris Hipkins this afternoon announced the move to a new rate of $22.70 per hour from 1 April as part of a raft of changes as the Government ...

"The impact on inflation is negligible. In a statement before the briefing, Hipkins said the inflation-adjusted lift in the minimum wage "will means thousands of New Zealanders do not go backwards". "An inflation-adjusted lift to the minimum wage will mean that thousands of New Zealanders don't go backwards."

Recently installed New Zealand Prime Minister Chris Hipkins unveiled a higher minimum wage Wednesday, as he seeks to court voters ahead of a tight October ...

"These families need our support now more than ever. Hipkins said he wanted to put "the cost of living front and centre" before New Zealand goes to the polls on October 14. With New Zealand in the grip of a cost of living crisis, Hipkins said the minimum wage would rise by 95 cents to $14.22 an hour from April 1.

Chris Hipkins had a chance to show he understands the pain businesses are feeling by hitting pause on further minimum wage increases, instead he's shown ...

“Forcing businesses to pay a wage that’s higher than the contribution a worker makes is nonsensical. “The minimum wage had already increased by an astonishing 35 per cent since Labour took office. It is putting another cost on businesses at a time when about 30 per cent of retail businesses aren’t sure they will survive the next 12 months.

It also comes as the Reserve Bank forecasts its aggressive interest rates hikes will cause a recession and see the unemployment rate rise from very low levels ( ...

“It’s running well above that in sectors most exposed to the minimum wage, like accommodation and food services (9.6 per cent). These families need our support now more than ever and an inflation-adjusted lift in the minimum wage will means thousands of New Zealanders do not go backwards,” Hipkins said. “We’ve tried to find the right balance. So, it’s not clear the minimum wage hike is going to give a lot of fresh impetus to wages.” The minimum wage will rise by $1.50 to $22.70 from April 1, meanwhile the starting out and training minimum wage rates will be maintained at 80 per cent of the adult minimum ($18.16). The Government is hiking the minimum wage by 7.1 per cent to a level that’s 28.2 per cent higher than it was four years ago.

Retail NZ is disappointed with the Government's decision to increase the Minimum Wage. “Retail NZ has advocated directly to the Prime Minister, ...

Those who are on the Minimum Wage are typically at entry level roles who quickly progress through the retail sector – but the additional reality is any increase at the bottom rates evidently increases all rates that are then just passed onto the consumer.” “The increase of $1.50 per hour, meaning a rate of $22.70 an hour, will mean many retailers will over time review product prices, limit opening hours, and inevitably means consumers are paying more for products. The impact will be most felt in small retail businesses who just do not have any more wiggle room – many of whom make up the 30 per cent of retailers who are not confident they will survive the next 12 months.”

Recently installed New Zealand Prime Minister Chris Hipkins unveiled a higher minimum wage Wednesday, as he seeks to court voters ahead of a tight October ...

Hipkins said he wanted to put "the cost of living front and centre" before New Zealand goes to the polls on October 14. "These families need our support now more than ever. (Photo by STRINGER / AFP)

Prime Minister Chris Hipkins concedes small businesses will find a $1.50 per hour minimum wage increase "difficult".

Hipkins announced the minimum wage would rise at a post-Cabinet press conference today. He said it also had a knock on effect - where when minimum wage workers earned more, it had an exponential and relative effect on the wages of higher earners in the same business - meaning the cost increase was not just from the raises for the lowest earners. that will give them that greater clarity that they're looking for, and we'll continue to." Asked if he was concerned the minimum wage increase cost could be passed on to consumers in a cost of living crisis, Hipkins said people on the minimum wage had the least ability to absorb additional costs. New Zealand Union of Students Associations president Ellen Dixon said her organisation had not yet met to formally adopt its position on the topic, but from her point of view the increase was not enough to have a real impact in the current economic climate. The head of a retailer group says the move will have a negative impact on already languishing business confidence, but a student leader says the increase could go further to help low wage earners.

Wellington, Feb 8 (IANS): New Zealand will lift the minimum wage by NZ$1.5 to NZ$22.7 per hour from April 1 in line with the Consumer Price Index (CPI), ...

An increase of 7 per cent in the minimum wage will have only a minor inflationary impact of 0.1 per cent on the wages portion of gross domestic product, he said, citing government-led research. "The government is refocusing its priorities to put the cost of living front and center of our new direction," Hipkins said. The Starting-Out and Training minimum wage rates will be maintained at 80 per cent of the adult minimum wage.

Wellington, Feb 8 (IANS) New Zealand will lift the minimum wage by NZ$1.5 to NZ$22.7 per hour from April 1 in line with the Consumer Price Index (CPI), ...

Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. "The government is refocusing its priorities to put the cost of living front and center of our new direction," Hipkins said. The increase of the minimum wage is broadly in line with existing average wage growth across the economy, Hipkins said. The Starting-Out and Training minimum wage rates will be maintained at 80 per cent of the adult minimum wage.

Prime Minister Chris Hipkins has announced the move to a new rate of $22.70 per hour from 1 April as part of a raft of changes as the government resets its ...

The biofuels mandate has been halted and changes to the Three Waters programme will be considered. "The impact on inflation is negligible. In the 2022 Review, MBIE estimates that an increase of 7 percent in the minimum wage will have only a minor inflationary impact of 0.1 percent on the wages portion of GDP," Hipkins said.

There are concerns the hike to minimum wage could be devastating for businesses. The Government has announced the minimum wage will rise by $1.50 to $22.70.

- Publish Date - Thu, 9 Feb 2023, 7:29AM - Author