The minimum rage will go up slightly, from $23.15 to $23.50 an hour next April. 

Workplace Relations and Safety Minister Brooke van Velden made the announcement this morning. 

She said the coalition had made a commitment to moderate increases to the minimum wage every year, and the increase reflected the current economic climate. 

”The New Zealand economy is still recovering from a sustained period of high interest rates and recessionary conditions,” the minister said. 

“In that context, delivering a modest increase in the minimum wage strikes the right balance between supporting workers and limiting further costs on business,” van Velden added. 

She said the Government had made significant progress tackling inflation. 

Van Velden said the 1.5% wage increase would help employers and businesses to keep growing and providing job opportunities. 

She also said the move would support plans to cut the number of people on jobseeker benefits. 

”Young people are more likely than other demographic groups to be earning the minimum wage, and it is important to ensure they are not locked out of jobs as the minimum wage rises.” 

The minister said she was giving employers more advance notice of the wage increase than they’d had in the past.