Minimum wage increase should be deferred

Date Added: 31st March 2020 from


The Government's decision to continue with the implementation to increase the minimum wage will further hurt economic recovery.

The minimum wage is set to rise to $18.90 tomorrow, up from $17.70, in what will be the second $1.20 increase in a row.

"Right now, the Government is spending $12 billion to keep people in work, to keep employees connected to businesses. It does not make sense why the Government would not also deffer the planned increase," says John Milford, Wellington Chamber of Commerce and Business Central Chief Executive.

"Businesses are facing an increase in wage costs at the same time as they are facing altered and reduced trading circumstances. Many are having to reduce wages by 80% just to keep the business going.

"Post lockdown we know that the economy won’t look the same, but this increase will further delay the trading and economic recovery from the Covid-19 emergency.

"We support the call, that plans for minimum wage increases should be delayed for 9 months or until Covid-19 recovery is confirmed.

ENDS