Unions are relieved about Chris Hipkins' announced increase to the minimum wage.

The Prime Minister announced that minimum wage would increase by a further 7 percent on April 1st to $22.70.

E Tu Assistant National Secretary Annie Newman says that many Kiwi businesses already pay their staff an accredited living wage, which is close to the increased minimum wage already.

Annie Newman says that an increased minimum wage doesn't have an impact on unemployment, and the flow-on effects for consumers will be minimal.

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