Payment compares well with overseas

The New Zealand youth rate of $10.80 an hour, being proposed by the Government, stacks up well in overseas comparisons on a dollar-for-dollar basis.

Labour leader David Shearer was critical of the starting-out wage under which young New Zealanders aged between 16 and 19 would be paid no less than 80% of the current adult minimum wage of $13.50.

"National's plan to pay young Kiwis low wages will just see them saving up their $10 an hour for a plane ticket to Australia," he said.

However, while the adult minimum wage in Australia is $A15.96 an hour, or $NZ19.85 on yesterday's conversion, the rates for union workers fall significantly.

Figures taken from the Fairwork website, showed that Australian 16-year-olds earn $A7.55 an hour, those aged 17 earn $A9.22 an hour, those aged 18 earn $A10.90 and hour and those aged 19 earn $A13.17 an hour.

The United States is more complicated than other jurisdictions with individual states allowed to either adopt the Federal minimum wage of $US7.25 ($NZ8.81) an hour, or set their own.

Some states pay as much as $US8.25 an hour, but others pay less - like Minnesota on $US5.25 an hour for small and medium-sized enterprises (SMEs) and Montana with $US4 ($NZ4.86) an hour for small businesses with an annual turnover of less than $US100,000.

The Department of Labor website states that a minimum wage of not less than $US4.25 must be paid to employees under the age of 20 for their first 90 consecutive calendar days of employment with any employer as long as their work does not displace other workers. After 90 consecutive days of employment, or when the worker reaches age 20 (whichever comes first), the worker must receive at least the federal minimum wage.

The situation is clearer in the United Kingdom with the adult minimum wage set at 6.19 an hour, or $12.06 New Zealand on yesterday's exchange rate.

Workers aged between 18 and 20 earn 4.98 an hour and those aged 16 and 17 earn 3.68 an hour.

Labour Minister Kate Wilkinson said the starting-out wage would be simple for employers to implement and would apply for a blanket six months after starting work with a new employer.

"The youth minimum wage was abolished in 2008 by Labour in a move that resulted in the loss of up to 9000 jobs. The starting-out wage is part of a wider package to help get more young New Zealanders into work or training," she said.

 

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