New Zealand’s living wage set to increase by nearly 10% in September
/ Our Today
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New Zealand’s recommend living wage is set to increase by almost 10 per cent or $2.35 which will take the living wage to $26 per hour. The living wage recalculation takes into account the increases in the cost of living in the country.
The 2023/24 New Zealand living wage will rise to $26 on September 1 of this year an increase from 2022/2023 amount of $23.65.
As a result, more than 370 accredited living wage employers will increase their hourly rates to $26, including multiple city councils, banks, energy companies, food companies and religious organisations.
The announced increase also follows “a full recalculation” that takes place every five years.
“Previous years have seen increases linked to changes in the country’s average hourly wages. The 9.9% increase or $2.35 on last year, is designed to reflect “recent increases in the cost of living”, said Reverend Stephen King, chairman of Living Wage Movement Aotearoa New Zealand.
According to King, 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.
In his statement, King, emphasized that there has been “increased hardship in the community”, most especially for low waged workers impacted by rising cost of living pressures.
He said the full recalculation ensures the living wage will continue to address in-work poverty and offer working people greater security and wellbeing.
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