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Labour Minister Simon Bridges today announced the minimum wage is to rise to $13.75 an hour.
This is a 25 cent increase on the current wage of $13.50, and follows calls for the wage to rise to $15 an hour.
The training and new entrants' minimum wages will increase from $10.80 to $11, which is 80 per cent of the adult minimum wage.
"Setting these wage rates represents a careful balance between protecting low paid workers and ensuring jobs are not lost as the economic recovery gains pace."
He said the Government was firmly focussed on growing the economy and boosting incomes.
"Through our Business Growth Agenda we are creating opportunities to help grow more jobs in New Zealand, for New Zealanders," said Mr Bridges.
The new minimum wage rates will come into effect on 1 April.
Labour labour spokeswoman Darien Fenton has called on the wage to be lifted to $15 an hour.