The coalition agreement between New Zealand First and the National Party commits the Government to a “moderate increase” in the minimum wage each year. But it is not clear that minimum wage earners are the most vulnerable. BusinessNZ, which was consulted on the decision, opposed lifting the minimum wage to the living wage—as suggested by the Council of Trade Unions—for this reason. The living wage was predicated on the needs of a family of four but the majority of minimum wage workers were not supporting families, the lobby group said. Employment restraint is what MBIE calls job losses, reductions in hours, and other negative effects of a higher minimum wage.

Source: Stuff February 08, 2024 05:13 UTC