The minimum wage will rise to $20 an hour, from $18.90 an hour as of today.
This could mean an extra $44 each week before tax for people working 40 hours a week on the minimum wage.
For those struggling to make ends meet, this is a welcome relief - however workers say being paid a living wage of $22.10 would be even better.
Rose is a cleaner in Auckland working two jobs, 65 hours a week, and Lavinia is a full time security guard - both are on miniumum wages and support families.
The pair spoke to Susie Ferguson.