Prime Minister Chris Hipkins has announced the minimum wage will go up by $1.50 in April.

This will bring the minimum wage up to $22.70 in order to keep in line with inflation.

Infometrics Principal Economist Brad Olsen says that the the Government had to hike up minimum wage in order to keep up with inflation.

Brad Olsen explains that while businesses aren't pleased, the minimum wage increase is slightly below average wage increases, and that people on the lowest incomes will need extra help.

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