Living Wage Increased

19 April 2022

Announced without much fanfare on 1 April, the Living Wage effective from 1 September 2022 will be $23.65.  This is a 4% increase which is lower than anticipated.

The Living Wage is assessed as the amount an employee needs to pay for the necessities of life and participate as an active citizen in the community. It reflects the basic expenses of employees and their families such as food, transportation, housing and childcare, and is calculated independently each year by the New Zealand Family Centre Social Policy Unit.

The calculation is based on a model of a two adult, two child household where there are 60 hours of employment. This modelling is similar to four other jurisdictions where living wages are important standards for employee well-being.