How are the minimum wage and the living wage different?
The minimum wage went up about 7% to $22.70 on April 1, while the living wage will rise by 9.9% to $26 from September 1 this year.
Both changes reflect New Zealand's high cost of living at the moment, but the two figures are set by different people and they have different impacts on different groups of Kiwis. Here's what it all means.
What is the minimum wage?
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The minimum wage is a legal obligation, set by the government and reviewed each year. It applies to most employees aged 16 years or over, and it's the lowest amount an employer can pay their employee (before tax).
The Ministry of Business, Innovation and Employment estimates about 222,900 people will see their pay rise with the latest hike.
As well as the adult minimum wage, there's a starting-out minimum wage — now $18.16 — for some 16 to 19-year-old employees who haven't been with their current employer for six continuous months yet, or are still undertaking industry training. It is 80% of the adult minimum wage.
But "if an employee is supervising or training other workers, then the starting-out minimum wage doesn't apply and they must be paid at least the adult minimum wage", the Employment NZ website clarifies.
There's also a training minimum wage — also $18.16 — for certain employees, including many apprentices, who are over 20 and undergoing an approved industry training programme.
It doesn't apply to employees who are being trained at work, and again, it doesn't apply to employees supervising or training others.
Are there any exceptions to the rule?
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Not everyone's pay rate is covered by the legislation that sets the minimum wage.
Migrant workers have the same minimum employment rights as Kiwi workers, but a small number of people with disabilities that affect their work are paid less than the minimum wage.
There is no minimum wage for employees under 16, while "inmates of any charitable institution (who aren't living there just because they're employees) who do any work as inmates" are also exempt, as are prisoners working while in custody.
How's the living wage different?
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The living wage is an opt-in rate, released by a group called the Living Wage Movement Aotearoa New Zealand.
In their words, the living wage "means thriving, not just surviving".
It's currently $23.65, and accredited living wage employers pledge to pay at least that amount to all staff and regular contractors.
Like the minimum wage, the cost of living is a key factor in how it's calculated. It is worked out independently, using the latest data and movement in New Zealand’s average hourly earnings.
Living wage employers must meet certain criteria.
How have the two been tracking?
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Both wages have been rising for years, with the current hikes coming as inflation is close to a 32-year high at 7.2%.
The minimum wage was set at just $8.50 two decades ago, from March 24, 2003.
It hit $13 on April 1, 2011, and rose steadily from there before reaching $20 for the first time on April 1, 2021.
The first living wage in New Zealand was set at $18.40 in 2013. At the time, the minimum wage was $13.75.
The living wage cleared $20 within a few years, set at $20.20 in 2017.
Since September 1 last year, it's been $23.65, and the new rate later this year will be the first time it's cleared $25.
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Poll: As a customer, what do you think about automation?
The Press investigates the growing reliance on your unpaid labour.
Automation (or the “unpaid shift”) is often described as efficient ... but it tends to benefit employers more than consumers.
We want to know: What do you think about automation?
Are you for, or against?
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9.5% For. Self-service is less frustrating and convenient.
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43.4% I want to be able to choose.
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47.1% Against. I want to deal with people.
Even Australians get it - so why not Kiwis???
“Ten years ago, if a heatwave as intense as last week’s record-breaker had hit the east coast, Australia’s power supply may well have buckled. But this time, the system largely operated as we needed, despite some outages.
On Australia’s main grid last quarter, renewables and energy storage contributed more than 50% of supplied electricity for the first time, while wholesale power prices were more than 40% lower than a year earlier.
[…] shifting demand from gas and coal for power and petrol for cars is likely to deliver significantly lower energy bills for households.
Last quarter, wind generation was up almost 30%, grid solar 15% and grid-scale batteries almost tripled their output. Gas generation fell 27% to its lowest level for a quarter century, while coal fell 4.6% to its lowest quarterly level ever.
Gas has long been the most expensive way to produce power. Gas peaking plants tend to fire up only when supply struggles to meet demand and power prices soar. Less demand for gas has flowed through to lower wholesale prices.”
Full article: www.theguardian.com...
If even Australians see the benefit of solar - then why is NZ actively boycotting solar uptake? The increased line rental for electricity was done to make solar less competitive and prevent cost per kWh to rise even more than it did - and electricity costs are expected to rise even more. Especially as National favours gas - which is the most expensive form of generating electricity. Which in turn will accelerate Climate Change, as if New Zealand didn’t have enough problems with droughts, floods, slips, etc. already.
Dry cleaners mt Roskill
Hello our fellow neighbors I was hoping someone would know where the old dry cleaners we had up at the lights on dominion road have moved to?? I was out of town and when I came back they were gone .... I had some items that I would really love to get back but if only I new where they moved to or how to get In Touch with the owners to see what they did with our clothes if they closed down or moved elsewhere? Any updates or news about it would be amazing neighbors. Have a great day
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