The minimum wage will go up by 25 cents an hour to $12.75, the Government announced today.
Labour Minister Kate Wilkinson said the increase was in line with the Consumer Price Index.
The training and new entrants' minimum wages will increase from $10 to $10.20 "The Government is focused on the need to find a balance between protecting jobs and ensuring a fair wage.
"We do not want to see workers priced out of the market, but we are confident that a 25c increase, in line with inflation, will not overly harm or discourage businesses from taking on new staff.
"The Government is working hard to provide the right environment for economic growth and ensuring workers can maintain the buying power of their wages is part of that," Ms Wilkinson said.
The new minimum wage rate will come into effect on April 1.
There had been pressure to increase the rate to $15 but Prime Minister John Key earlier ruled that out.
