The Living Wage should do what we say it does.

‘The Living Wage is the income necessary to provide workers and their families with the basic necessities of life. A living wage enables workers to live with dignity and to participate as active citizens in society.’ 

From 1 September 2024, the Living Wage hourly rate is $27.80. 

This is an increase of $1.80 on the 2023/24 rate, which is in line with a 6.9% increase in New Zealand’s average ordinary time hourly rate.

Every year, the Living Wage rate is independently updated by the Family Centre Social Policy Research Unit.

Living Wage Aotearoa NZ is notified of the new rate by the Family Centre. 

Read the update report from the Family Centre here.

Our job is to share the new rate and inform accredited Living Wage Employers of their responsibilities to meet the Living Wage Employer criteria.

By 1 September 2024, accredited Living Wage Employers should pay the new Living Wage rate.

By 1 September 2024, accredited Living Wage Employers should pay the Living Wage rate of $27.80.

They can pay the 2023/24 rate of $26.00 until 31 August 2024. 

There's a difference between an employer who pays a living wage and an accredited Living Wage Employer. 

Paying the Living Wage is voluntary, and we've noticed more employers are proudly paying it to their staff. Ka rawe!

However, there's a key difference between a business that pays a living wage, and an accredited Living Wage Employer. 

Employers go through a robust accreditation process so they can use the trademarked Living Wage Employer logo and call themselves a 'Living Wage Employer'. It's a clear commitment to their employees, customers, and the public. 

Living Wage Employers must pay the current Living Wage rate to regular contractors too.

This distinction ensures some of our lowest-paid workers, such as contracted cleaners and security guards, are lifted out of poverty and recognised for the valuable and essential roles they fulfill.

We're proud of the businesses which have made this commitment - from finance to fitness and every industry in-between. They deserve your support.

Find the list of accredited Living Wage Employers here. 

Read more about the Living Wage Employer accreditation programme here. 

Rodney Wayne, founder of Rodney Wayne Hair Salons, was interviewed on Three’s AM Show, after his induction into the Franchise Hall of Fame.

Watch the interview here.

In the interview, Wayne comments on the state of the hairdressing industry. He shares that five Rodney Wayne salons have recently closed, attributing this to ‘massive’ staff shortages. In the same breath, he complains about ‘young people today’ demanding the Living Wage.

If a Living Wage is what it will take for hairdressers to be attracted to the industry, and stay in the industry - then why not make it happen?

The current Living Wage is $26 per hour.

In research both here and internationally, there is strong support for pay fairness predicting job satisfaction.

Paying a living wage can increase productivity, reduce worker turnover and absenteeism, and improve the quality of job applicants.

Read more about the benefits of paying a Living Wage here and here.

It adds up to workers turning up, happy, prepared and valued, rather than ‘heading to the beach when the surf's up,’ as Wayne alleges.  

Wayne says he doesn’t understand why hairdressing apprentices need the Living Wage, asking why they just can’t live at home.

If Wayne really wants more people entering the hairdressing industry, he cannot limit the recruitment pool to those who can live at home, supported by parents or caregivers.

The reality is, hairdressers, new or experienced, are a diverse workforce, and just want to make ends meet.

They may choose to move to cities with more job opportunities, but crippling rental and living costs.

Some may be facing the choice between feeding their children, or continuing their training. It’s this choice that will determine their future industry.

Mr Wayne is predicting ‘very strong years’ ahead for his business. We’d encourage him to share the good times with his workforce – his ‘best friends’ – by paying a Living Wage.

Over 360 accredited Living Wage Employers are doing just that. They're reaping the rewards – including more job applicants, and better worker retention.

See the list of accredited Living Wage Employers here.

Other employers who pay the Living Wage share it proudly with job seekers.

Hospitality have picked up on this too, some choosing to pay the Living Wage to remain competitive in a tight labour market.

An added bonus for Rodney Wayne? Some workers on a Living Wage may even have enough money to save up for a treat – like a cut and colour.

Let’s aspire for a future Hall of Fame inductee to say, ‘My first salon invested in me, my education, and paid me enough to pay my rent and support my family’.

Note: Any formal apprenticeship under the Training and Apprenticeship Act 1992 is separate to the requirements of Living Wage Employer accreditation. Some Living Wage Employers choose to go beyond the accreditation requirements, and extend the Living Wage to apprentices, and other ‘earning while learning’ roles.

On Friday 29 September, we sought commitments from parties to pay a Living Wage to employed and contracted workers in the wider state sector.

Our nationwide forum was co-hosted in Auckland, Wellington, and Christchurch, with candidates joining from the Wellington venue.

Almost 600 people from across the faith, union, and community groups in the Living Wage Movement attended.

Connected via video-link, speakers and attendees came together because they want to retain the progress made in the last Government, and push even further.

In 2018, the Government committed to paying workers in the core public service at least the Living Wage, and in 2021, the Government introduced procurement guidelines with Living Wage requirements for new cleaning, catering and security contracts. 

At the forum, the Movement asked political parties to continue this procurement practice in the public sector, and extend it to workers in publicly-funded education and health.

For school cleaners like Jo Mcasey, the decision is particularly important. Jo addressed politicians at the forum.

“Without cleaners, caretakers, canteen staff and grounds keepers our schools would fall apart,” said Jo.

“I was shocked and surprised to learn that is rare to see school cleaners earning a living wage. My supervisor tells me about how my teammates are struggling day to day, with their rent and ensuring that there is enough food on the table. It's a struggle we all face.”

The nationwide impact of a Living Wage in the wider state sector was represented by a banner created by sisters Barbara and Pam. Barbara and Pam have been school cleaners of over 40 years and are based in Invercargill. The banner hung proudly at the Wellington City venue, St Peter’s on Willis.

Where do the political parties stand?

The National and ACT parties declined to attend, leaving thousands of workers uncertain about their future under a National-ACT Government.

Te Pāti Māori did not send a representative to the forum. The Movement only accepts answers in person, to demonstrate the importance of showing up for our community.

Read the Living Wage Movement’s Election Asks in full here.

The Labour Party answered "Yes" to all five asks.

Ibrahim Omer represented the party, on behalf of the Deputy Prime Minister, who was affected by flight delays.

Omer shared that he understands the difference a Living Wage makes, with first-hand accounts of his experience as a cleaner and union organiser.

“I think the Labour Party’s track record speaks for itself. We’ve committed to what the Living Wage Movement has asked of us, including delivering the Living Wage in the public service," Omer said.

He addressed the attendees - “We are in this together, we’re committed to this.”

The Green Party answered "Yes" to all five questions.

Julie Anne Genter represented the party, and shared frustrations about the “excuses” used to stop workers being paid the Living Wage.

“The Green Party believes that there is enough wealth in Aotearoa that for every person can live with dignity," Genter said.

“Government has the responsibility to be a good employer. The Green Party is the only party here that will change the tax system to ensure that the government does have enough (to pay the Living Wage).”

On behalf of NZ First, Andy Foster answered "Yes" to three of the asks.

He committed that NZ First would maintain the Living Wage for workers in the public service, that this commitment would be part of any coalition agreement, and that NZ First would maintain a relationship with the Living Wage Movement to track this commitment. 

NZ First could not commit to paying at least the Living Wage to workers in the education and health sectors.

Foster told the audience that NZ First would be a Living Wage advocate in a National-led government.

“National’s not here. ACT’s not here. If you would like someone to advocate for the Living Wage in the new Government, then it’s got to be New Zealand First”, Foster said.

What happens after the Election?

The Living Wage Movement is a non-partisan organisation. We will continue to pay close attention to directly employed and contracted workers in the wider state sector, and push to ensure they can all live with dignity.

“The Government can reduce the impacts of poverty, right in their own backyard, by paying the Living Wage. The speed at which this can be achieved, and the mechanisms to make it happen are in their hands,” said Rev. Stephen King, Chair of the Living Wage Movement Governance Board.

“However, any unnecessary delays means another day that public sector workers and contractors remain on low wages.”

From today, 1 September 2023, thousands of workers will receive a pay increase to ensure they can live with dignity and participate in society. 

The Living Wage rate of $26.00 an hour will see workers at accredited Living Wage Employers earning at least $3.30 more than the minimum wage. 

$26.00 is the result of a full recalculation of the Living Wage, which happens every five years. In other years, the Living Wage is linked to movement in New Zealand’s average hourly wages. 

The cost of essentials, such as housing, energy and transport is reflected in the Living Wage rate. The rate also considers what families need to live with dignity and participate in society, such as recreational activities and saving for emergencies. 

Read more about the Living Wage rate here. 

In April, Rose Kavapalu, a cleaner at the time, shared an experience that is familiar to many low waged workers – missing out on connection and recreation. 

‘Since petrol prices have gone up, we’ve cut down on visits to extended family.  

The Living Wage might feel like five cents to some people, but to me and my family, it means finally living a life. (You can) feel like a family again,’ Rose said. 

Victoria Nebbeling, a Community Gardens Coordinator from Christchurch, says the new rate is reassuring. 

‘It means I can afford to live and keep doing the work I enjoy with a community in need. With the rising cost of living, and a new pēpi, I've been feeling anxious,’ Vic says. 

‘This increase in the Living Wage is so important. I’ll be able to support my family and worry less about our increased energy bills.’ 

In a challenging time for many businesses, two Living Wage Employers have shared why they continue to pay the Living Wage. 

Staff wellbeing is a key motivator for health and wellness brand Two Islands, and charity Māngere Budgeting Services Trust. Paying the Living Wage also aligns with their organisational mission and values.  

Two Islands Founder and Director, Julia Matthews said: ‘As a health and wellness brand, we understand the impacts of stress due to financial pressure, and how important it is for us to support our employees during these challenging economic times.  

While it's a hard time for businesses too, we have a responsibility to proactively support our employees through this period. This will benefit everyone in the long run.’ 

Visit the website and shop Two Islands products here. 

Lisa Dolan, Chief Executive - Tumuaki Kaiwhakahaere of Māngere Budgeting Services Trust shares Julia’s view that the Living Wage is beneficial to staff health and wellbeing. 

Learn more about Mangere Budgeting Services Trust and visit their website here. 

‘Being a Living Wage Employer is another positive difference that we're making in our community. We now truly take care not only of our clients but our employees as well. 

The Living Wage helps our staff deal with inflation and reduces the impact of the cost-of-living crisis,’ Lisa says. 

Including Julia and Lisa, a total of 368 Living Wage Employers will begin paying the new rate today.  

Accredited Living Wage Employers ensure that both directly employed and contracted staff are paid at least the Living Wage, which has a wide-reaching impact on thousands of workers and their families.  

Find the list of accredited Living Wage Employers here.  

The Living Wage Movement has launched the Living Wage Schools campaign.

The campaign’s focus is delivering the living wage for school cleaners, caretakers, canteen staff, and groundskeepers (CCCGs), through new targeted funding from central government.

It’s a change that would increase the wage of an individual worker by an average of $180 per fortnight. For a family consisting of two adults and two children on one and a half incomes, their total income would increase by $270 per fortnight.

Developed by Living Wage Movement members, the campaign was officially launched in Wellington on 29 August 2023.

Read more about the Living Wage Schools campaign here.

Living Wage Movement supporters filled Te Aro Community Hall, where they heard from Andre Uncles, a school cleaner, and Robert Stewart, a caretaker of twenty years.

Before the launch, Andre reflected on what a living wage would mean to cleaners.

Andre said: ‘A living wage for cleaners in schools would mean they can put more food on the table, cover their bills, and pay their rent. It would give us self-worth and the feeling that we are being valued for the contribution we make to the school.’

Read Andre’s story in full here.

Robert shared his own personal story of coaching students to become champion table tennis players. This was a poignant example of how CCCGs’ contributions to school life often go beyond their job description.

Robert said: ‘It’s more than just a 9 – 5, five day a week job, it is being part of a school community, where in my way I can help the next generation.’

Read Robert’s story in full here.

Andre and Robert were supported by their colleagues in education sector, who endorsed the campaign on behalf of their unions.

PPTA member, and secondary school teacher, Nat Jump, spoke of the value CCCGs brought to the school community. An NZEI Te Riu Roa member and teacher aide talked about her colleagues’ journey to decent pay, and that she wanted to see CCCGs get the same opportunity.

Read Nat’s statement in support of a living wage for CCCGs here.

The Living Wage Movement recognises that schools face financial pressures, as Boards of Trustees work hard to allocate limited funding to provide great teaching and learning environments.

Read more about school funding and the impact on CCCG employment and wages here.

To alleviate this pressure, the Movement is calling on central government to provide new targeted living wage funding for state and integrated schools.

Living Wage Movement supporters around Aotearoa will be asking their local schools to pledge their support a living wage for CCCG staff, and join the call to central government to provide additional funding for this much needed pay boost.

Find out how to participate in the Living Wage Schools campaign here.

The Greater Wellington Regional Council (GWRC) has voted to pursue Living Wage Employer accreditation.

The near-unanimous position places GWRC as the second regional council and seventh local authority in Aotearoa to pursue accreditation.

GWRC is currently paying the Living Wage to directly employed staff and transportation operators. To gain Living Wage Employer accreditation, the Regional Council will need to ensure regular contractors also receive the Living Wage.

Regional councillors commented on the seven-year effort by community, union, and faith groups to guide GWRC to this milestone.

Yesterday, Rev. Stephen King, Chair of the Living Wage Movement, made a submission before Councillors voted whether to pursue accreditation. He was accompanied by a delegation of members from across the Living Wage Movement.

Rev. King said: “It is clear from the paper presented to council that Regional Council’s current soft Living Wage procurement policy is not effective.

“It has allowed contracted workers over the years to fall through the cracks, leaving many still on the minimum wage.

“As a movement, we see the consequences this has on our community. The stark reality is that this decision holds profound implications for real people and their children who depend on them.”

He continued by saying that voting to pursue Living Wage Employer accreditation would show GWRC's commitment to combat poverty, and show leadership in the Wellington region.

Gina Lockyer, Executive Director of the Living Wage Movement, says: “We commend the GWRC councillors for working together, and coming to a decision that will have a transformational impact on workers.

“GWRC were making positive steps by paying the Living Wage to their directly employed workers, but now they’ll work to ensure that contracted workers, like cleaners, are included.

“These workers are often the lowest paid, so a pay bump will make a huge difference to them and their families,” Lockyer says.

We look forward to collaborating with GWRC in their ongoing effort to transition their regular contracted workers to the Living Wage.”

Thousands of New Zealanders work in the wider state sector, publicly funded schools, hospitals and health care providers.

Inside these workplaces are people who deliver cleaning, groundskeeping, catering and other care and maintenance services. Many are on low hourly wages, even though they're essential workers.

An incoming Government can change this. They can ensure these workers receive a living wage, and can live with dignity.

We’re asking political parties to keep paying living wages to workers in public service.

The Living Wage Movement spent years urging our government to pay all their workers at least the Living Wage. And eventually, they listened.

In 2018, the Government committed to paying workers in the core public service at least the Living Wage. In 2021, this was extended to include contracted staff, who are often the lowest paid.

The first affected were MSD security guards like Robert Duston. Here’s what he had to say:

When I supported my daughter growing up, it was very hard on low security pay, so I'm pleased for others in similar circumstances. I wake up every morning knowing I’m being paid what I’m worth.

No matter who ends up in Government, this must continue. Too many lives have transformed to go back now. At the national Living Wage Movement election forum, we’ll be asking party leaders to maintain a Living Wage for directly-employed and contracted workers in the public service.

We’re also asking political parties to extend the payment of living wages to workers in publicly-funded education and health.

Many workers in publicly-funded sectors, like education and health, are still earning close to the minimum wage. Whether directly employed or contracted, these workers are essential to the function of our hospitals and schools. 

We think that where the Government can provide the funding and direction to ensure that workers can live with dignity, they should.

You can read our policy asks in full here.

On Friday 29 September, at our national Living Wage Election Forum, we found out where the top-polling parties stand.

It was awesome to see our communities turn out in force for the Living Wage Election Forum this year, held in Auckland, Wellington, and Christchurch.

We put our asks to the candidates and here are the results! Note that parties who did not send a representative do not get any ticks – you have to show up to get on the scorecard.

The Living Wage Movement Aotearoa New Zealand is a member of the Global Living Wage Affiliate Network.

The diversity of economic conditions around the world means that it is not practical to think in terms of setting one fixed benchmark of pay or one fixed approach at global level.

Multinational employers have highlighted the challenges of finding partners that can offer a credible approach to help them meet their Living Wage commitments across global operations with some holding back on accrediting their organisations until they have a consistent approach in the other countries in which they operate.

To tackle this issue, the Living Wage Foundation (UK) launched the Global Living Wage Affiliate Network, which offers multi-country accreditation. Aotearoa is the newest member, joining the United States and the United Kingdom.

By creating alignment in a range of areas while maintaining local specificity, the network encourages and makes it easier for leading multinational employers to take a truly global position on paying a real Living Wage to all their directly employed and contracted staff. 

'The Living Wage Foundation is absolutely delighted that the Living Wage Movement Aotearoa New Zealand has joined the Global Living Wage Affiliate Network. We have worked closely with the movement ever since they visited our UK offices in 2012 to share experiences, so it is a significant milestone to finally be formally affiliated with them,' says Katherine Chapman, Director of the Living Wage Foundation, UK.

'The strength of the Living Wage community movement across Aotearoa New Zealand has enabled them to achieve major successes with the New Zealand government implementing a Living Wage for their staff, as well as whole industries such as the banking sector.'

Multinational employers are stepping up to meet their responsibilities in supporting achievement of the SDGs, including provision of Living Wages. Chapman says an aligned approach across multiple countries is a big step in the right direction.

The Global Living Wage Affiliate Network offers multinational employers a robust approach to provision of Living Wages across global operations. Therefore, members of the network must demonstrate that they have shared values and principles on methodology, calculation, accreditation policy, and compliance. 

'Reaching the standard required for affiliation is no easy task and I am so pleased that the Living Wage Movement in New Zealand passed the test so impressively,' says Mark Sparkes, Sustainability Director of Linklaters, and Review Panelist for the GLW Affiliate Network.

'Building a global network is essential if we are to bring to life the idea of each and every employer paying a fair wage wherever they may be. New Zealand’s success is another important step in achieving that benchmark of responsible employment.' says Sparkes.

'The people in our Movement, our robust accreditation system, and independently calculated rate have led to the Living Wage becoming the benchmark for decent pay in Aotearoa-New Zealand,' says Gina Lockyer, Executive Director, Living Wage Movement Aotearoa New Zealand.

'Our accredited Living Wage Employers also play a vital role in this. They take the concept of a Living Wage and make it a reality. For us, it’s the right time to support more multinational employers to get on board. Joining the Global Living Wage Affiliate Network is the way to make this happen.

It's one less barrier to accreditation, and one more step towards more Kiwi workers being paid a Living Wage – and the positive impact on whānau and communities cannot be underestimated.'

You can read more about our membership to the Global Living Wage Affiliate Network here.

Faith groups, community groups and Unions can be members of Living Wage Movement. They are the Movement!

It's a diverse range of groups who share a common view – that the Living Wage is one way to lift working people from poverty and inequality.

Member organisations can be represented in all structures of the Living Wage Movement, including the national Governance Board. 

Sign up to become a member organisation here.

Living Wage Movement member organisations

Anglican Care
Anglican Diocese of Wellington
Association of Salaried Medical Specialists, Toi Mata Hauora - ASMS
Auckland Action Against Poverty
Auckland Anglican Social Justice Group
Auckland Methodist Central Parish
Auckland North Community and Development
Auckland Unitarian Church
Auckland Women's Centre

Belong Aotearoa

Campaign Against Foreign Control
Canterbury Community Gardens Association
Canterbury Women's Club
Changemakers Resettlement Forum Inc
Child Poverty Action Group (CPAG)
Christchurch Resettlement Services

Durham Street Methodist Church (Aldersgate)

Earth Action Trust
Ecology Justice and Peace Commission of the Wellington Catholic Archdiocese
Equity New Zealand
E tū
Exchange Christchurch Ltd

First Union

Greenpeace NZ Inc

Hutt Union & Community Health Service

ISEA (Independent School Education Association)

Keep Our Assets - Canterbury

Maori Women's Welfare League
Migrant Action Trust
Migrante Aotearoa NZ

Newtown Union Health Service
North Shore Women's Centre
NZ Dairy Workers Union
NZ Meat Workers Union
NZ Council of Trade Unions
NZEI Te Riu Roa
NZEI Te Riu Roa - Counties Manukau Area Council

Pacific Women's Watch NZ

Papakura Anglican Parish
Phillipstown Community Centre Charitable Trust
Polynesian Panther Party Legacy Trust
Porirua Union and Community Health Service
Postal Workers Union

PPTA Te Wehengarua
Public Service Association Te Pūkenga Here Tikanga Mahi

Quaker Annual Meeting

Rail & Maritime Transport Union
Religious Society of Friends - Northern Monthly Meeting
Social Equity and Wellbeing Network (SEWN)
St Andrews on the Terrace
St Matthews in the City
St Peter's Anglican Church, Onehunga
St Peter's On Willis Anglican Church

Te Awakairangi Health Network
Tenants' Protection Association
Tertiary Education Union
Tertiary Education Union - AUT Branch
The Auckland Womens Centre Incorporated
Titirangi Residents and Ratepayers Incorporate

Victoria University of Wellington Students' Association

Waikato Environment Centre Trust t/a Go Eco
Waitakere Union Health Centre
Wellington Branch, Public Health Association
Whanganui Quaker Monthly Meeting (Whanganui & Taranaki Monthly meeting)
Women's Health Action Trust

List current as of 1 Dec 2023.

3 April 2023

The new Living Wage rate is $26.00 per hour

The Living Wage has undergone a full recalculation. From 1 September 2023, thousands of workers will receive a pay increase to ensure they can live with dignity and participate in society.

The 2023/24 New Zealand Living Wage rate is $26.00 an hour. This is an increase of $2.35 or 9.9% on the 2022/23 rate.

$26.00 is the result of a full recalculation of the Living Wage, which happens every five years. In other years, the Living Wage is linked to movement in New Zealand’s average hourly wages.

Recent increases in the cost of living are reflected in the new Living Wage rate. The rate also considers what families need to live with dignity and participate in society. This includes the cost of recreation and saving for emergencies.

The rate will see workers at accredited Living Wage Employers earning at least $3.30 more than the minimum wage.

“With rising costs and pressures on low waged workers, we are seeing increased hardship in the community,” says Rev Stephen King, chair of the Living Wage Movement.

“The full recalculation ensures the Living Wage will continue to address in-work poverty, and offer working people greater security and wellbeing,” says Stephen.

Rose Kavapalu, a cleaner who is paid the Living Wage, says the increase to $26.00 per hour will mean she can reconnect with family.

“Since petrol prices have gone up, we’ve cut down on visits to extended family. Now, I’ll be able to take the grandkids to visit their cousins. We would feel like a family again,” says Rose.

“The Living Wage might feel like five cents to some people, but to me and my family, it means finally living a life.”

Accredited Living Wage Employers will pay the new Living Wage rate by 1 September 2023.

Environment Canterbury (ECan) is the latest accredited Living Wage Employer. ECan Chair Peter Scott says it is an honour.

“Living Wage accreditation is something we’ve been working towards for some time,” says Peter.

“Being a Living Wage Employer means our people and contracted providers are paid fairly for the great mahi they do.”

ECan is the first Regional Council to gain Living Wage Employer accreditation. It joins over 370 Living Wage Employers, who voluntarily pay at least the Living Wage to staff and regular contractors.

“The Living Wage Movement congratulates ECan, and all Living Wage Employers,” says Felicia Scherrer, Living Wage Employer Programme Lead.

“These employers have chosen to prioritise paying a Living Wage, and together they have transformed thousands of lives.”

“We know that Living Wage Employers reap the benefits too. Research has shown that paying the Living Wage can reduce staff turnover, improve productivity, and boost employee morale,” says Felicia.

ENDS

Note for media:

The recalculation of the Living Wage rate is part of the Five Year Measurement Review of the Living Wage. This is an independent review conducted by the NZ Family Social Policy Centre Research Unit.

Read a summary of Living Wage recalculation, including item by item costs, here.

In other years, the Living Wage is linked to movement in New Zealand’s average ordinary time hourly rate.

For more information about the New Zealand Living Wage Movement, please visit www.livingwage.org.nz.