NZ Government to set minimum wage to $20/hr on April 1, 2021

The New Zealand Government has announced its confirmation to improve wages for the lowest paid.

Workplace Relations and Safety Minister Michael Wood made the announcements today that the minimum wage will go from $18.90 to $20.00 per hour from April 1 2021.

Michael Wood says the recovery of the COVID-19 pandemic means the Government is committed to supporting New Zealanders by raising wages.

“There are many Kiwis who earn the minimum wage that has gone above and beyond in our fight against COVID. This minimum wage increase will lift the incomes of around 175,500 New Zealanders – which means $44 more each week before tax for Kiwis working 40 hours a week on the minimum wage,” Michael Wood said.

“The rise in the minimum wage is estimated to boost wages across the economy by $216 million, giving New Zealanders more money to spend at local businesses. Increases to the minimum wage can also promote productivity, which is good for businesses too.”

A balanced approach is being taken to support both employees and employers during the COVID-19 pandemic.

There will be access to a ‘Short Term Absence' payment while an employee takes a COVID-19 test.

“Access to a Short Term Absence Payment to support employers to ensure their employees can follow public health guidance while waiting for a COVID-19 test,” Michael Wood said.

“In the event of COVID-19 resurgence, we have put in place a new Resurgence Support Payment to help firms cover their fixed costs and committed to the Wage Subsidy Scheme for Alert Level 3 and above,” concluded Michael Wood.

Image: SUPPLIED