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New Zealand to increase minimum wage to 11.6 USD per hour

Source: Xinhua| 2017-12-22 21:55:42|Editor: Jiaxin
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WELLINGTON, Dec. 22 (Xinhua) -- The New Zealand government will increase the minimum wage by 75 cents to 16.5 NZ dollars (11.6 U.S. dollars) per hour starting April 1, 2018, Workplace Relations and Safety Minister Iain Lees-Galloway announced on Friday.

The increase will benefit approximately 164,000 workers and their families, and will increase wages throughout the economy by 129 million NZ dollars (90.5 million U.S. dollars) per year, Lees-Galloway said, adding that the government is committed to a high-performing economy that delivers good jobs, decent work conditions and fair wages.

The government is committed to increasing the minimum wage to 20 NZ dollars (14 U.S. dollars) by 2021, and it is important the goal is achieved "in a fiscally responsible way," which is why the government is signaling to employers in advance to incrementally raise the minimum wage and spread the increases as evenly as possible each year, the minister said.

These changes are a part of the government's wider workplace relations policy platform, which is about backing fair pay and conditions, and "ensuring those on lower incomes get to share in our economic prosperity," the minister said.

The minimum wage will be reviewed each year, and economic conditions will be taken into account when setting the new rate of the minimum wage, he said, adding that this consistency gives employers and employees certainty, and "minimizes potential negative effects of increasing the minimum wage too sharply".

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