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Summary
- Living wage rate has risen to $22.75 per hour from September 1.
- On the same day, April 1, minimum wage was also increased to $20 per hour.
- Living wage is crucial for the financial well-being of Kiwis.
On April 1, Living Wage Aotearoa announced that staff on living wages would earn $22.75 per hour from September 1. This is an increase of 65 cents per hour as compared to 2020 living wage.
On the same day, the New Zealand government increased minimum wage to $20 an hour.
The New Zealand Family Centre Social Policy Analysis Team calculates the Minimum Wage on an annual basis. It pays for routine costs such as food, lodging, accommodation, and childcare, and it is revised as wages grow.
Source: © Lucidwaters | Megapixl.com
Superannuation levels and main benefit will also rise. Further, cleaners employed by Auckland Council will be paid the Living Wage by the end of 2021. As part of the emergency budget last year, the council voted to pay the hired cleaners the Minimum Wage of $22.10 per hour.
The wage is based on 68% of New Zealand's gross hourly wages, which were $33.33 in the year to June 2020, according to Stats NZ's Quarterly Employment Survey. The minimum wage is 84.3% of the median hourly earnings from wages and salaries of $27, according to the Household Labor Force Report.
Westpac, AMP, are some of the accredited living wage employers.
Living wage crucial to attain financial well-being
Gina Lockyer, Chair of Living Wage Aotearoa, stated that over 240 employers had paid the living wage. The living wage was introduced in 2013 to deal with increasing poverty and inequality and reflects the actual cost of living in NZ.
She appreciated the work done by researchers, employers, and Living Wage Movement, in making the increase in living wage possible.
According to Blair Vernon, Chief Executive of AMP Wealth Management, the first KiwiSaver provider to be certified as a Living Wage employer, stated that financial security was important for Kiwis, and the living wage let them attain it.
He stated that many Kiwis did't have enough money to live, or were living on some support from an agency in the form of food, clothing, or money. More businesses need to accept ownership for optimising outcomes for their workers and families by paying a living wage.
(NOTE: Currency is reported in NZ Dollar unless stated otherwise)
