Breaking tradition the National/Act coalition Government has announced the April 2025 minimum wage rate today.
This morning Workplace Relations and Safety Minister Brooke van Velden has announced the coming year's minimum adult wage rate which is a moderate increase to $23.50 on 1st April 2025.
The Government is required to review the minimum wage rate annually and any changes always come into effect in the new financial year of April 1 each year. Delivering this decision prior to Xmas is unusual, but aimed at giving business more time to prepare and plan for this in good time.
The Government's decision is being seen as reflecting the current economic climate and labour market conditions. Ms van Velden is quoted saying the new rate is "the right balance between supporting workers and limiting further costs on business". She goes on to say for the first time in 3 years inflation is within the Reserve Bank's target band and this increase to the minimum wage supports that.