Unions say another 50 cent rise in the minimum wage is simply inadequate.

LISTEN ABOVE: Labour MP Iain Lees-Galloway discusses the minimum wage rise with Rachel Smalley

The Government has announced that from April it will rise to $15.75 an hour.

It's the third successive year the Government has increased it by 50 cents.

Living Wage campaigner for the union E tu, Mat Danaher, said it will be cold comfort for families struggling with back to school costs, on top of everything else.

"There's the rising housing costs, which will certainly be no surprise, not to just those of us fortunate enough to live in Auckland, but it's also a growing issue in other major urban centres and just the increase in the cost of living generally."

The starting-out and training hourly minimum wage rates will go up 40 cents to $12.60 an hour.

Mr Danaher said minimum wage workers won't be upset to get an increase.

"Some money's better than none but does it go anywhere near enough to meeting the day-to-day costs they face? We would say no."

There are just under 120,000 workers on the minimum wage.

The Taxpayers' Union said the rise is more than eight times the level of inflation.

It said the Government knows very well that hiking the minimum wage faster than inflation means those most vulnerable are priced out of the job market.

The group said it's election year virtue signalling at its worst, and the cost will land on those already struggling to make ends meet.