A reader posted this question to me. NZ Superannuation is set at 66% of the average wage (for a couple).
Now if you jerk up the effective minimum wage from $13.75 to $18.40 per hour, that will increase the average wage significantly.
That will then mean the rate of NZ Superannuation will increase significantly, making it more unaffordable.
Any economists out there want to take a stab at what the extra cost of NZ Super would be if the minimum wage was $18.40?