How SMEs will be dealing with minimum pay rise

Drive 28/03/2018
Photo: iStock

The minimum wage is set to rise on April 1st from $15.75 to $16.50. It means around 164,000 Kiwi workers will be better off.

That is great news for the worker but what does it mean for the small to medium sized businesses in NZ?

Ryan Bridge and Lisa Owen speak to Kim Campbell from the Employment and Manufacturers Association on RadioLIVE Drive.

Workplace Relations and Safety Minister Iain Lees-Galloway says it is part of Labour's plan to improve wages and conditions for working New Zealanders. 

"The rise in the minimum wage is estimated to inject $129 million into the economy through the wages of low income workers, circulating back into the economy because people on lower incomes are more likely to spend their wages on essential items like doctor's visits, keeping on top of bills, buying more healthy food - things that far too many Kiwis struggle to afford." 

Mr Lees-Galloway believed the best time to raise the minimum wage is while the labour market is strong and tightening. 

Listen to the full interview with Kim Campbell above.

Drive with Ryan Bridge and Lisa Owen, 3pm - 6pm Weekdays and streaming live on 'rova' channel 9 - available on Android and iPhone.