The minimum wage is an important policy tool that provides a wage floor for vulnerable workers. The NZCTU’s view is that the overarching aim of the minimum wage should be to ensure that people in paid work can earn enough to live on.
This submission sets out the NZCTU’s recommendations for the Minimum Wage Order 2027 and details the positive impacts we believe that a higher minimum wage would have.
The main recommendations are:
- The minimum wage should be lifted to the living wage, which is set at a level that means people can live with dignity and participate in society. The living wage for 2026/27 is $29.90 per hour.
- At minimum, it is essential the minimum wage increases in real terms in 2027, and that the ground lost over the last five years is recovered.
- The training and starting out rates should be abolished so that all workers are protected by the minimum wage and that workers receive equal pay for work of equal value.
- An independent tripartite commission should be established to support the calculation of an official living wage and to conduct research on the role played by the minimum wage in New Zealand economy and society.
- MBIE should consider the potential extent of non-compliance with the minimum wage, particularly in industries with high numbers of migrant workers. MBIE should consider the resourcing necessary for the Labour Inspectorate to adequately investigate and respond to non-compliance.
- The details of MBIE’s modelling should be published as part of the review. The data and assumptions on which the modelling is based should be made publicly available to enable independent scrutiny and analysis of them.