The minimum wage is going up by 25 cents.

Minister of Labour Kate Wilkinson this afternoon announced the increase, from $12.75 an hour to $13, would take effect from April 1.

Ms Wilkinson said the training and new entrants' minimum wages would rise from $10.20 an hour to $10.40.

"This Government's focus when reviewing the minimum wage over this term has centred on the need to protect jobs while ensuring a fair wage," Ms Wilkinson said.

"The 25c increase in conjunction with last year's tax cuts ensures that workers on the minimum wage have maintained the buying power of their wages."

- NZPA