First Union Central organiser Kaye Hearfield said the pay raise couldn't have come at a better time with the continuing inflation.
"It is the perfect time to have this done," Hearfield said.
"People are in so much hardship with the uncertainty and whether they will still have jobs. Inflation has skyrocketed, I absolutely support it."
She said while businesses had struggled over the last two years during Covid, some had certainly made profits.
"Some have struggled and some have absolutely made good profit margins as far as I am concerned, so it's affordable to them."
Employees wanted jobs that motivated them and made them feel worthy in the community, and companies had to pay for that, Hearfield said.
"You want to retain staff? Then look after staff. So it's a no-brainer, in my view.
"Working people will be extremely grateful to get the increase on the minimum wage. There is not one person I would stumble across that would say 'I'm quite willing to give my money back because I don't need it'.
"Everybody on the minimum wage welcomes it."
Whanganui Chamber of Commerce chief executive Helen Garner said the Government was fully aware that sectors of the business community had been doing it tough over the last two years, and the struggle continued as they attempted to navigate the challenges of the red traffic light setting.
"The short-notice announcement of an increase to the minimum wage from April 1 further compounds the hurt and abandonment that a lot of our businesses are feeling right now," Garner said.
"The Government's press release stated that the wage rise will have a stimulatory effect on the economy as workers spend extra money on goods and services, thus supporting business.
"The reality is that the cost of doing business will rise, and the price consumers pay for goods and services will too.
"You cannot magic money up from nowhere, something has to give."
Garner said people needed to be prepared that this may mean letting workers go and, for others, thinking twice about taking on new workers.
"While we understand that this is an election promise being fulfilled, its timing and the extra burden being placed on our businesses seems ill-considered. If there truly was a commitment to making living more affordable for Kiwis, there are more effective ways to achieve this.
"And through all of this, we ask, where is the support for business? It feels like some have forgotten that our business owners are people, workers and Kiwis. Let's show some care for them too."
Retail NZ chief executive Greg Harford said the hike "can't come at a worse time for retail businesses that are bruised and bleeding after two years of lockdowns and other Covid restrictions".
Harford said retailers were facing cost increases "from all directions" as well as falling consumer confidence.
"Retail NZ has repeatedly asked the Government to postpone any further increase in the minimum wage, and we are disappointed that the Government is not listening."
