‘Needed more than ever’: Living wage rises to $29.90 per hour

The living wage was set by Living Wage Aotearoa NZ. Photo / Rebekah Parsons-King, RNZ

By RNZ

The living wage will rise to $29.90 per hour from April 1, a 95c increase from the previous $28.95.

The living wage is independently calculated by the Family Centre Social Policy Unit and released by Living Wage Aotearoa NZ, a coalition of unions, faith and community groups.

The organisation argued higher fuel costs were putting extra pressure on low-paid workers, many of whom were shift workers with no choice but to drive to work.

Muriel Tunoho, the coalition chairperson, said: “Right now, in a cost-of-living crisis that seems to be getting worse every day, the Living Wage is needed more than ever.

“Low-paid workers are struggling to keep their heads above water and to cover the absolute basics like rent, power and kai.”

Muriel Tunoho. Photo / RNZ

More than 340 employers are accredited Living Wage Employers.

There is no legal requirement for employers to pay more than minimum wage, which is $6 below the living wage.

The living wage increase is double that of minimum wage, which also rises to $23.95 on Wednesday – an increase which did not keep up with inflation.

Living Wage lead organiser Finn Cordwell said the living wage would help struggling families live a life of dignity which was not possible currently on the minimum wage.

“We would like the Government to reflect on how out of step the minimum wage has become for low-paid workers and whether anyone around that Cabinet table could actually live on $23.95 an hour.”

Living wage employers have until September 1 to implement the new rate.

- RNZ