KEY POINTS:
The minimum wage will rise to $12 an hour from Tuesday, but unions say they will continue to campaign to lift it to $15 an hour.
The Government announced the rise in December, saying it was meeting its obligation to New Zealand First and the Green Party under their post-election deal.
The change will affect about 140,000 workers and means the minimum 40-hour-week wage would be $480.
The Government has already raised the minimum wage once this term, to $11.25 an hour, which came in on April 1 last year.
Council of Trade Unions (CTU) secretary Carol Beaumont said campaigning to lift low wages was paying off.
"Unions campaigned for a $12 an hour minimum wage, and through agreements between Labour with both the Greens and New Zealand First, this has now fully delivered on it."
The abolition of youth rates will also come into effect on Tuesday, meaning 16- and 17-year-olds will see their minimum wage rise from $9 to $12 after 200 hours or three months, whichever is sooner.
"National frequently talks about the wage gap with Australia but has so far failed to come up with any meaningful solutions," Ms Beaumont said.
"We know that they are on record wanting to cut workers' conditions, which will reduce wages, but they need to put their money where their mouth is and say how they will lift wages.
Ms Beaumont said the CTU argued for a three-pronged approach to address low pay, which comprised:
- lifting the minimum wage to $15 an hour;
- strengthening the rights for workers to be covered by industry wide employment agreements;
- and ongoing investment in skills, infrastructure and modernising work practices.
- NZPA
