Pay changes benefit young

Young workers are in line for a pay rise with the Government's decision to raise the minimum wage and end training exemptions from March.

The Government also plans to raise the adult minimum wage, by 2 per cent from $7.55 to $7.70 an hour. The age of eligibility will drop from 20 to 18.

The youth rate for 16- and 17-year-olds will increase to 80 per cent of the adult rate over the next two years. This means a rise to $5.40 an hour in March and to $6.15 in 2002.

The current minimum rate for 16- to 19-year-olds is $4.55 an hour.

The Government has also replaced training exemptions with a training minimum wage rate equivalent to the youth rate.

At present, employers are exempt from paying minimum wage rates if a job agreement includes some training towards a qualification registered on the National Qualifications Framework.

Labour Minister Margaret Wilson and Youth Affairs Minister Laila Harre said the increase in the adult minimum wages was based on average wage growth in the past year. They said the lowering of the eligibility age for the adult wage was in line with other youth policies and NZ obligations to United Nation conventions.

- NZPA