Govt’s miserly 1.5% minimum wage will take workers backwards

The Government’s announcement today of a 1.5 per cent increase to minimum wage is another blow for workers, with inflation projected to exceed the increase, meaning it’s a real terms pay reduction for many.

“This adds insult to injury for our workers who have been under constant attack under this Government,” says Green Party spokesperson for Workplace Relations, Teanau Tuiono.

“The Green Party’s Income Guarantee provides a clear alternative, a commitment to every New Zealander that no matter what, you will have enough to put food on the table, a safe place to call home, and live a decent life–all paid for with a fair tax system.

“While the Government claims this move supports its objective of reducing the number of people claiming the Jobseeker benefit, it fails, miserably, to address the reality for many workers. The assertion that work is the pathway out of poverty rings hollow when minimum wage is no guarantee of the ability to pay rent, feed a family, or pay for essential things like healthcare.

“Shockingly, half of children living in poverty live in households whose primary income comes from work.

“Further, rents are increasing significantly faster than minimum wage increases, with a massive 4.1 per cent increase in rent costs from November last year. The system is failing those it claims to support.

“Choosing to raise the minimum wage by less than inflation means more people will face mounting debt and will struggle to cover the basics, let alone afford the unexpected costs of medical care, childcare, or urgent repairs.

“The Government's decision today does not reflect what New Zealanders deserve. It’s time for bold action that prioritises the well-being of workers and their families, not more pandering to the rich at the expense of the rest of us,” says Teanau Tuiono.

NOTES:

NZIER is picking inflation to be 2.3 per cent in March 2025 when this increase comes into effect, meaning in real terms, minimum wage workers pay will fall behind by 0.8 per cent.
The Green Party’s Income Guarantee can be found here: Ending Poverty Together - Green Party of Aotearoa New Zealand

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