The adult minimum wage is set to rise by 50 cents.
Labour Minister and Tauranga MP Simon Bridges announced the wage will increase from $13.75 an hour to $14.25 an hour.
The Starting-Out and training minimum wages will increase from $11 an hour to $11.40 an hour, which is 80 per cent of the adult minimum wage.
"Setting these wage rates represents a careful balance between protecting low paid workers and ensuring jobs are not lost," Mr Bridges said.
The increase would balance the needs of both businesses and workers with minimal impact on the wider labour market and inflationary pressures, he said.
"This increase will keep the minimum wage at around 50 per cent of the average hourly rate, which is the highest rate in the OECD."
The new minimum wage rates will come into effect on April 1, 2014.