Increase comes despite proposal to scrap Living Wage requirement in government procurement
The New Zealand Living Wage will go up to $28.95 per hour starting September 2025, according to the Living Wage Movement on Monday.
The increase marks a $1.15 hike from the previous year and is in line with the 4.2% rise in New Zealand's average hourly wage.
The new rate represents a significant boost for workers employed by a total of 342 accredited Living Wage Employers, who will earn at least $5.45 more per hour than the national minimum wage.
The Living Wage refers to the income needed to provide workers and their families with the basic necessities of life, allowing workers to "live with dignity and participate as active citizens in society."
"The Living Wage has made a real difference to workers for over a decade now," said Gina Lockyer, Executive Director of Living Wage Aotearoa NZ, in a statement.
The Living Wage is calculated and updated annually by The Family Centre Social Policy Research Unit.
"The announcement during the first week of April this year gives employers lead time to implement the Living Wage by 1 September this year," the unit said in a statement.
The increase comes amid a recent proposal to scrap the Living Wage requirement in government procurement.
Lockyer warned that if the proposal gets passed, workers will miss out on the new Living Wage rate and any future increases.
"The Government has two choices – a Living Wage that improves community outcomes and service delivery, or hardship for the people who keep their agencies safe, healthy, and secure," she said.
In New Zealand, accredited Living Wage Employers also need to add Living Wage requirements in procurement contracts, ensuring that anyone delivering them services is also paid the Living Wage.
"Living Wage requirements in procurement are the most effective way to ensure everyone in the workplace is paid fairly," Lockyer said.
"This distinction has lifted thousands of low-waged workers out of poverty and recognised the valuable and essential roles they fulfil."
