Brooke van Velden says the modest rise strikes a balance between supporting workers and limiting further costs on business. Photo: RNZ / Angus Dreaver
The minimum wage for adults will increase by 1.5 percent to $23.50 an hour from April, the government has confirmed.
Workplace Relations and Safety Minister Brooke van Velden said the increase mets the coalition government's commitment to moderate increases to the minimum wage each year, and reflected the current economic climate and labour market conditions.
Tuesday's announcement follows a 2 percent increase in April this year that saw the minimum wage rise from $22.70 to $23.15 an hour.
Training wages and starting wages will increase to $18.80, remaining at 80 percent of the minimum wage for adults.
Van Velden said the economy was still in recovery mode following a sustained period of high interest rates and recessionary conditions.
"Delivering a modest increase in the minimum wage strikes the right balance between supporting workers and limiting further costs on business," she said.
"This increase also reflects the significant progress the government has now made on inflation, which has now returned to the Reserve Bank's target band for the first time in more than three years.
As the group most likely to be earning the minimum wage, it was important to ensuring young people weren't locked out of the job market, Van Velden said.
"The past three minimum wage announcements have been made in February of the year the increase came into force, leaving businesses only two months to prepare for the change.
