The Living Wage Movement Aotearoa New Zealand has announced a significant increase in the hourly Living Wage rate for the 2024/25 period, setting it at $27.80. This marks a $1.80 rise from the previous rate, reflecting a 6.9% increase in line with the movement in New Zealand's average ordinary time hourly rate, as reported by Stats NZ.
Since its introduction in 2013, the Living Wage has seen a growth of over 50%, with the largest jumps occurring in the last two years to offset higher-than-normal CPI inflation. This adjustment ensures that workers earn a wage that meets the basic cost of living, promoting a decent standard of living.
Accredited Living Wage Employers, who have undergone a rigorous accreditation process, are expected to implement the new rate by 1 September 2024. These employers are distinguished by their commitment to fair wages and are authorised to use the trademarked Living Wage Employer logo.
The government currently ensures that all its workers, including cleaners, security guards, and other contractors, are paid at least the Living Wage. However, there is uncertainty regarding the continuation of this commitment in the future.
Prime Minister Christopher Luxon emphasises that the best strategy for lifting wages is through economic growth. This approach suggests a focus on broader economic policies to improve wage standards across the board.