Minimum wage up 3.8%

February 8th, 2012 at 1:40 pm by David Farrar

The Government has just announce that the annual adjustment to the will see it go from $13.00 an hour to $13.50 an hour. This is a 3.8% increase, and works out to $1,000 a year for a FT person on the .

Since 2009, it has gone up a cumulative 12.5% over three years.

Tags:

19 Responses to “Minimum wage up 3.8%”

  1. toad (3,654 comments) says:

    A nominal 3.8% increase, but no real increase at all – remember that the CPI increased by 4.6% in the year to September 2011.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  2. freedom101 (439 comments) says:

    A cynical trade between increasing the number of young people out of work and winning some political points from inside the beltway’s lefty journos, unions and the Labour Party and Greens.

    With unemployment up, it’s surely a good time to increase the cost of taking an inexperienced person on! Well done National.

    If the Maori Party cared about the unemployment rate among young Maori (25%+) then they’d oppose this increase.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  3. Pete George (21,830 comments) says:

    toad – remember (I’m sure you do) that the 4.6% CPI included the GST increase which was offset by lower tax rates. Why didn’t you use the calendar year CPI?

    And it isn’t meant to be a ‘real increase’, the aim is to keep up with inflation. Artificially high increases are as much at risk of adverse effects as they are of benefits.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  4. bhudson (4,720 comments) says:

    @toad,

    I would say “keep up with the times” but I am concerned that you were being deliberately disingenuous.

    CPI increased by 1.8% for the year to December. So the increase is twice the CPI inflation for the annual period.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  5. ross (1,454 comments) says:

    No doubt DPF will soon be posting on Pat Dougherty’s 18.2% pay rise and Tony Marryatt’s 14.4% pay rise. It seems a shame to focus on the small fry when the big fish receive no attention.

    http://www.stuff.co.nz/dominion-post/news/6307884/Another-council-boss-pockets-huge-pay-rise

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  6. adze (1,695 comments) says:

    Ross, DPF does not appear to be critical of the minimum wage increase. So I’m not sure why your examples are relevant.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  7. Pete George (21,830 comments) says:

    adze, ross is in opposition so must oppose. That’s how our negative nitpicking politics works. Well, it doesn’t actually work very well but that’s how some are obsessed with playing it.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  8. Brian Smaller (3,915 comments) says:

    Don’t like being oin the minimum wage – then get a better job. if all you are capable of is working for minumum wage then stop whining and blame yourself for being either completely unambitious, stupid or living in the wrong country.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  9. rouppe (852 comments) says:

    Gosh that’s a bigger percentage wage rise than I got.. And the year before I got zero…

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  10. swan (651 comments) says:

    What on earth is the justification for this? Does the government not care about unemployment?

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  11. Dick (80 comments) says:

    swan (224) Says:
    February 8th, 2012 at 3:41 pm

    What on earth is the justification for this? Does the government not care about unemployment?

    Surely after three years of Key you are aware that the justification is for him to be able to keep the votes of the idiot middle NZ mum and dad voters. No, the government does not care about unemployment, just the perception of being a nice enough bloke to vote for rather than that other guy. I think this quote from Spartacus is relevant:

    “You kiss my cheek, only to finger my ass.”

    If you want a government that cares you vote for the ACT party and get less than 1% of the vote ‘cos Kiwis don’t think.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  12. flipper (3,274 comments) says:

    Ohhhh…
    Most of that is irrelevant.
    The reality is that $13.50 will be the base.

    Add the following (not optional,COMPULSORY)……
    ACC (say) 3% – .41c
    Sick Leave 2% – .29c
    Annual Leave 8% – 1.08
    Kiwi Saver (soon) 4% – .54c

    ACTUAL HOURLY RATE —– $15.80

    Seems to me that phillie goffie got his wish. Business will continue to discontect with Labour.

    Oh dear. What a pity. Never mind.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  13. BlairM (2,266 comments) says:

    I am disgusted with National doing this. It proves that they are a centre-left party, as no self-respecting right leaning political party would raise the minimum wage.

    Raising the minimum wage not only hurts the young and the poor, but it is also racist against Maori and Pacific Islanders, whose demographics skew towards the unskilled in greater numbers.

    How any employer can afford $13.50 for unskilled labour is a mystery to me. No wonder New Zealand is going nowhere.

    Why is there no politicians standing up and saying this is wrong? Have they all gone gutless?

    New Zealand: Committing suicide 50c at a time.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  14. Manolo (12,643 comments) says:

    More crap from the Labour lite government.
    To foster a business-friendly environment, to allow companies to hire more employes, the Key government should cut taxes instead.

    There is little difference between the Key and Clark regimes, only the speed of the leftward lurch.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  15. side show bob (3,660 comments) says:

    Just more woo economics from a party that really should know better. If we are going to continue down this path why not pay everyone $50 a hour and be done with it. Shit we will all be rich then, fucking dickheads.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  16. Tautaioleua (266 comments) says:

    Trust the socialists to fail the free market operation 101!

    There’s a reason why unskilled and inexperienced kiwis are finding it tough in today’s climate. Employers aren’t all that keen for young and/or unskilled applicants.

    To train, supervise and put up with their unreliable tendencies results in the loss of thousands of dollars. And that’s for just the one employee, imagine the bigger employers that recruit more regularly and the costs involved with hiring a young person or a new graduate.

    National should make the tough calls now by re-applying the classic incentive for hiring the young and inexperienced. Sadly, I don’t think they will. They’re more concerned about the opinion polls and “expert political analysis” in the daily herald lol.

    People like David Lange got in there and made a name for themselves by getting shit done quickly, irrespective of the polls. They did what they firmly believed in and walked away again.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  17. geo_kiwi (43 comments) says:

    “Don’t like being oin the minimum wage – then get a better job. if all you are capable of is working for minumum wage then stop whining and blame yourself for being either completely unambitious, stupid or living in the wrong country.”

    What do you say to the people who have disabilities, who are honest and hard-working but cannot get into more skilled work because their handicaps prevent them? They didn’t ask to be handicapped, Brian.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  18. berend (1,602 comments) says:

    Great plan, let’s make getting your first job more expensive!

    So the only people who can get that first job are the people who can afford to work for free, or with connections or the right background.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote
  19. BlairM (2,266 comments) says:

    What do you say to the people who have disabilities, who are honest and hard-working but cannot get into more skilled work because their handicaps prevent them? They didn’t ask to be handicapped, Brian.

    Well I’d like to be a rock star and cure AIDS, but it ain’t gunna happen. Boo freaking hoo for me. Being disabled means that… you are disabled! It’s not fair because life’s not fair. I’m not disabled and wouldn’t wish it on anyone, but I know that most people who are disabled have come to terms with their disability and learned to live with the fact that they will never set a 100m world record. You set your ambitions in life on what you can achieve within your limitations, and find peace and happiness in the pursuit of that.

    I say to those people – go and work and make money if you can, so that you don’t have to scunge off the taxes of strangers, because that is not fair to them either.

    Vote: Thumb up 0 Thumb down 0 You need to be logged in to vote

Leave a Reply

You must be logged in to post a comment.