A high-profile poverty advocate has called for the minimum wage to go up to $25, saying there's no evidence it'll result in job losses.

But ACT's David Seymour says "basic economics" suggests that's not the case.

The minimum wage is set to rise to $18.90 in April, up from $17.70. It's the second $1.20 increase in a row.

But Ministry of Business, Innovation and Employment advice provided to the Government suggests the increased costs on business will result in approximately 6500 fewer jobs being created in 2020.

While Seymour says it would be "churlish and cruel" not to be happy for those getting a pay increase come April 1, it's "not so great for the most vulnerable people who need a start, who need a leg-up".

Those people, employers will say 'look - we would give you a chance... we can't do it'," he told Magic Talk on Monday. "That's the real human tragedy - this policy hurts the exact people that most need the help."