A real terms pay reduction for many workers is expected as the minimum wage increase falls short of projected inflation.
The Government has announced a 1.5 per cent hike in minimum wage, citing its objective of reducing Jobseeker benefit claims. However, Green Party spokesperson Teanau Tuiono claims this move fails to address the reality faced by many workers.
According to projections from NZIER, inflation is expected to exceed the increase, with a predicted 2.3 per cent rate in March 2025, resulting in a real terms pay reduction of 0.8 per cent for minimum wage workers. This decision has been met with criticism, as rents continue to rise faster than wages.
Teanau Tuiono says this decision is another blow for workers who are already struggling to make ends meet. He asserts that the system is failing those it claims to support and calls for bold action that prioritizes the well-being of workers and their families.
The Green Party's Income Guarantee, which promises a commitment to every New Zealander having enough to live a decent life, has been put forward as an alternative to the Government's policy.