The minimum wage has been raised by the Government for the ninth year in row but, Palmerston North MP Iain Lees-Galloway says it will provide little relief.
On Tuesday last week, National announced the minimum hourly rate would increase by 50c, taking it to $15.75 in April. But Mr Lees-Galloway, who is Labour's spokesperson for Workplace Relations, labelled the hike a cold comfort to many.
"Fifty cents an hour is simply not enough to keep up with enormous increases in housing costs that many New Zealanders currently face. A 3.3 per cent increase in wages is nothing when rents were up by 8.5 per cent last year and house prices rose by 12.5 per cent."
National's Workplace Relations and Safety minister Michael Woodhouse said there would also be an increase to the starting-out and training minimum wage rates from $12.20 to $12.60 per hour.
"The Government is committed to striking the right balance between protecting our lowest paid workers and ensuring jobs are not lost," he said. "An increase to $15.75 will benefit approximately 119,500 workers and will increase wages throughout the economy by $65 million per year."
