Adults earning New Zealand’s minimum wage will receive a 9.8 percent rise in April 2007, Labour Minister Ruth Dyson has announced. The minimum wage will increase from $10.25 to $11.25 an hour from 1 April 2007.

The increase will directly affect the wages of around 110,000 adult workers.

The youth minimum rate, for workers aged 16 and 17 years, will increase from $8.20 an hour to $9.00 an hour, to stay at 80% of the adult minimum wage.

“The boost in the minimum wage will ensure that lower paid workers share the benefits of economic growth, encourage people to join the workforce and provide protection for some of New Zealand’s most vulnerable workers,” Ruth Dyson said.

“With four months till the changes come into effect, businesses will have time to prepare. The date of 1 April was chosen to reduce compliance costs for businesses as it will coincide with the implementation date of four weeks’ annual holidays.”

The government’s goal is for the adult minimum wage to reach $12 an hour by the end of 2008, if economic conditions permit.