A Living Wage is the income necessary to provide workers and their families with the basic necessities of life. A Living Wage will enable workers to live with dignity and to participate as active citizens in society.
The recalculated Living Wage hourly rate for 2017, which comes into effect on July 1, is set at $20.20 per hour. This is an increase of 40 cents on the 2016/17 rate of $19.80 and is in line with the average movement in wages. The rate is set by the Family Centre Social Policy Research Unit in the Hutt Valley led by Charles Waldegrave, who says:
"This figure sits modestly at 68 percent of the average hourly earnings in New Zealand ($29.62) for the same quarter. The QES does not provide median hourly earnings. The redeveloped Household Labour Force Survey showed the NZ Living Wage to be 86 percent of median hourly earnings from wages and salaries ($23.49)."