



New Zealand already has a "very generous" minimum wage compared to other countries, says Prime Minister John Key as the rate is set to rise by 50 cents an hour to $15.25 on April 1.

That's a 3.4 per cent increase for the country's lowest paid workers, and Mr Key says it's a matter of striking a balance.

"As always when setting the minimum wage, it's important to strike the right balance between protecting our lowest paid workers and ensuring jobs are not lost," he told his weekly post-Cabinet news conference.

Mr Key says the Government has put the minimum wage up every year since taking office, "but in a gradual but sustainable way".

"New Zealand already has a very generous minimum wage compared to other countries. The latest increase will keep the minimum wage at around 50 per cent of the average hourly rate, which is one of the highest proportions in the OECD," he said.

Today’s announcement is too little, too late - Labour leader Andrew Little

Announcing the increase earlier this afternoon, Workplace Relations Minister Michael Woodhouse said it will directly benefit approximately 152,700 workers and will increase wages throughout the economy by $75 million a year.

However Labour leader Andrew Little says today's increase is "too little, too late and will not alleviate the difficulties so many Kiwi workers are facing".

"A miniscule rise in the minimum wage of just $18 a week in take-home pay will barely cover rent rises and shows how little the Government cares about growing inequality in New Zealand," he said.

"Mr Little says in the last 12 months, the average rent in New Zealand rose by $14 a week and $24 a week in Auckland, "showing what a drop in the bucket today's increase is".

He says Labour first called for a $15 minimum hourly rate seven years ago and "today we are just 25 cents above that".

"New Zealand was once an egalitarian society but we are creating a generation of working poor, Kiwis who hold down full-time work yet can't put food on the table for their families or afford a warm, dry house."