Increases in main benefit rates, superannuation, student allowances, Working for Families tax credits, and Orphans and Unsupported child benefits all kick in today.
So far it seems that the joke is on the Government, which is copping flak about the changes from groups on both the left and right.
Employer groups such as Business New Zealand and the EMA say the wage increase is ill-timed with businesses battling inflation and Covid disruption.
Poverty advocates say benefit increases won't be enough for many families struggling to pay bills as the cost of living rises.
Increases that looked generous last May have been eroded by inflation before they even arrive.
It seems difficult to imagine how anyone could oppose a rise in the minimum wage when considering the struggle workers go through every day. But it is not always a simple economic equation, especially right now with inflation threatening to spiral out of control.
"The wage increase will also have a stimulatory effect on the economy as many workers will spend the extra money on goods and services, which in turn, will help support businesses," Workplace Relations and Safety Minister Michael Wood said in February when the Government confirmed the latest minimum wage rise.
Unfortunately, the economic landscape has shifted, even since February.
Inflation is at its highest level in 30 years, with an annual rate of 5.9 per cent for 2021 and an increase of 1.4 per cent in the three months ended December.
Now the war in Ukraine has spiked oil prices and looks set to push the cost of living even higher.
That means stimulation is the last thing the economy needs.
The Reserve Bank is already hiking interest rates with a view to taking excess cash out of the economy.
The Government, by its own admission, will need to be careful with spending to avoid adding to inflation.
If employers simply pass on rising costs - including higher minimum wages - then prices will rise further.
Our lowest-paid workers may find they are going backwards even further.
Economists agree that the better way to lift wages is to lift the nation's productivity. In other words, we need to create more real wealth with the hours we work.
That however remains a long-term economic goal.
While inflation can potentially make workers poorer, many of the drivers are outside of our control.
The extent to which benefit and minimum wage rises may boost inflation isn't enough to justify ignoring the immediate need of our poorest people.
For those receiving increases from today, the extra money will clearly make a difference.
But we shouldn't fool ourselves that these increases do anything to solve our big economic challenges, beating inflation and boosting productivity.
