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Published 4 April 2023 | 2 min read
New Zealand Living Wage will rise to $26 from September 1st 2023.
It's no secret that these past few years have been challenging for all of us. Covid-19, the Ukraine-Russia war, and inflation pressures have all had an impact on our lives, making things tougher for employees and employers alike.
What is the new NZ living wage coming in September 2023?
Amidst all this, there's some good news for employees in New Zealand. As reported by 1 News, the living wage in New Zealand is set to rise nearly 10 percent in September, from $23.75 to $26. This increase is designed to reflect recent increases in the cost of living and to ensure that families can live with dignity and participate in society.
The chairman of Living Wage Movement Aotearoa New Zealand, Reverend Stephen King, has stated that the increase also takes into account the cost of recreation and saving for emergencies. This is an important consideration, as it means that the living wage is not just about meeting basic needs, but also about ensuring that workers have the opportunity to enjoy life and plan for the future.
The increase in the living wage will see workers at accredited Living Wage Employers earning at least $3.30 more than the minimum wage. This is great news for those who have been struggling to make ends meet, as it will provide them with a little more financial security and stability.
Why is the living wage increasing in New Zealand?
Reverend King has stated that there has been "increased hardship in the community", particularly for low-wage workers who have been impacted by rising cost of living pressures. The increase in the living wage is therefore designed to address in-work poverty and to offer working people greater security and wellbeing.
More than 370 accredited Living Wage employers will increase their hourly rates to $26 by September 1, 2023. This includes multiple city councils, banks, energy companies, food companies, and religious organizations. This is a positive development, as it means that a significant number of workers will benefit from the increase in the living wage.
It's worth noting that the announced increase follows a full recalculation that happens every five years. Previous years have seen increases linked to changes in the country's average hourly wages. This means that the increase in the living wage is based on a careful consideration of the cost of living and the needs of workers, and is not simply a knee-jerk reaction to current economic conditions.
In conclusion, the increase in the living wage in New Zealand is good news for employees and their families. It provides them with a little more financial security and stability in these uncertain times, and it helps to address in-work poverty. At the same time, it's important for employers to recognize the value of paying their workers a living wage, as this can lead to increased productivity, improved employee morale, and a stronger economy overall.