Workplace Relations and Safety Minister Michael Woodhouse
confirmed the new minimum wage will sit at $15.75 and will come into force on April 1.
Woodhouse also said the government had been careful to strike the right balance between protecting low-paid workers and ensuring businesses aren’t forced to cut jobs.
"At a time when annual inflation is 0.4 per cent, a 3.3 per cent increase to the minimum wage will give our lowest paid workers more money in their pockets, without hindering job growth or imposing undue pressure on businesses,” he said.
The increase is expected to benefit approximately 119,500 workers and will increase wages throughout the economy by $65 million per year.
The starting-out and training hourly minimum wage rates will also increase, from $12.20 to $12.60 per hour, remaining at 80 per cent of the adult minimum wage.
New Zealand’s minimum wage is set to rise by 50 cents later this year as the government pushes ahead with its plan to boost incomes and grow the economy.