The living wage is determined by Living Wage Aotearoa NZ, an independent coalition, while the government sets the minimum wage. The government has proposed removing the requirement for government contracts to use the living wage, a move that has sparked concern.
This announcement by Living Wage Aotearoa NZ means employees of accredited Living Wage Employers will earn at least $5.45 more than the minimum wage.
Living Wage Aotearoa NZ is a coalition of unions and other groups. It operates independently from the government. There are 342 accredited Living Wage Employers.
Many government contracts currently utilize the living wage but the current government has proposed removing this requirement from its contracts. This proposal has raised concerns about the potential impact on workers.
“The Living Wage has made a real difference to workers for over a decade now. For many workers and their families, it’s the difference between being able to make ends meet or falling behind. It’s being able to afford school uniforms and medical expenses. It means not having to decide between doing a grocery shop or paying the power bill,” said Living Wage Aotearoa NZ executive director Gina Lockyer. “If the changes go ahead, these workers will miss out on the new Living Wage rate, and any future increases. The government has two choices – a Living Wage that improves community outcomes and service delivery, or hardship for the people who keep their agencies safe, healthy, and secure.”Lockyer highlighted the potential consequences of the government’s proposal. She emphasized the choice facing the government between supporting a living wage and potentially causing hardship for workers. The living wage is currently $27.80 an hour. Government agencies currently must follow 71 rules when tendering contracts.
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