Just done some quick calculations on what someone on the minimum wage would have in terms of real take home pay today, as opposed to six years ago.
The gross minimum wage has increased 19%.
However tax has been reduced, so despite earning 19% more income, they are now paying 14% less tax.
The ACC rate is slightly higher today than in 2008 (when ACC was near insolvent) so that has gone up. Hopefully next year will drop again.
The net income of a fulltime minimum wage earner is 27% higher than six years ago.
The key thing is how have costs risen during the period. And the good thing is that even with the GST increase the cost of living only increased 14% in six years, so a minimum wage earner has had an 11% increase in their real disposable income in that period.Tags: minimum wage