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Steady Minimum Wage Rate A Reasonable Move

BusinessNZ is expressing caution on plans to raise the minimum wage next year.

The Government has confirmed it will increase the rate to $20 per hour from 1 April 2021.

BusinessNZ Chief Executive Kirk Hope says Covid-19 has reduced the earning ability of many firms and now is not the right time for new costs to be loaded onto business.

"While New Zealand’s economy is looking better than predicted with today’s figures from StatsNZ showing exceptionally strong growth in the last quarter, we should remember that this growth has occurred in the context of a massive fiscal stimulus.

"New Zealand is not out of the woods yet on Covid, and we cannot assume this kind of growth will continue, given the continued uncertain global outlook.

"Holding the minimum wage steady until financial indicators improve would be a reasonable move."

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