Prime Minister Chris Hipkins has raised the minimum wage by $1.50 to $22.70 per hour by April 1.

Hipkins has conceded that small businesses will find the minimum wage increase "difficult".

Employers and Manufacturers Association head Brett O'Riley says that this wage increase will be implemented at a tough time for businesses.

"When we are so close to the beginning of the next financial year for most businesses on the first of April, this is a really bitter pill for them to swallow."

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