This will mean a pay rise for around 100,000 Kiwis, and there’s also a pay boost for young newcomers, who will see their pay increase from $11 to $11.40 an hour.
Speaking to TVNZ, CEO of Employers and Manufacturers Association Kim Campbell says that the increase is good news, and it won’t have a problematic impact on New Zealand’s businesses.
“It is coming in small increments, so industry will probably be able to cope with it,” he said.
Prime Minister John Key has faced criticism as he believes that increasing the minimum wage above $14.50 would result in job losses.
“We’re trying to balance the capacity for businesses to pay a bit more and for people to earn enough to live,” he said.
Image credit: Thinkstock