Government's Minimum Wage Increase: A Step Backward for Workers, While Living Wage Employers Lead the Way

A week before Christmas, the Government announced a 35-cent increase to the minimum wage, raising it to $23.50 per hour from 1 April 2025.

For minimum-wage earners, this "increase" is an effective pay cut in real terms, further widening the gap between their earnings and what is required to live with dignity.

The holiday season is a stark reminder of the financial struggles many families face after working hard all year, while others enjoy a time of abundance and celebration.

Workers are being asked to do more with less and bear the brunt of the economic downturn.  Yesterday, food relief agencies shared with RNZ about the increasing need for their services, including from people who are in work. 

The Living Wage, independently calculated to reflect the real costs of housing, food, transport, and other necessities, is $27.80 per hour.

The calculation and definition of the Living Wage remain separate from political decision-making or government wage policy. Item by item, the Living Wage covers the actual cost of living a dignified life, including rent, transportation, broadband internet, and savings.

The Living Wage Movement Aotearoa remains steadfast in our mission to end poverty wages.

This year, we celebrated the tenth anniversary of the Living Wage Employer programme. More than 350 employers across Aotearoa are accredited Living Wage Employers, and 42 new employers joined the programme this year.

Living Wage Employers are determined to lift their staff and contracted workers out of poverty and acknowledge the essential roles they play. They know it takes more than the minimum to make that happen.

Now more than ever, we need bold leadership and action to ensure that all New Zealanders have the chance to lead fulfilling, prosperous lives.

While we don't see that bold leadership and action in today's minimum wage announcement, we certainly see in accredited Living Wage Employers.

See the list of accredited Living Wage Employers here.

Support Living Wage Employers in the lead up to Christmas - see the Living Wage Employer Christmas Catalogue here.