4000 staff members from the Ministry of Business, Innovation and Employment (MBIE) and Inland Revenue (IR) staff will take strike action on two separate days next month.
On July 9 and July 23, staff members at both agencies will stop work for two hours.
The Public Service Association (PSA), which is the union representing workers in the sector, says there was an "overwhelming vote" to strike.
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PSA national secretary Glenn Barclay told Ryan Bridge on RadioLIVE: “We’ve failed to make progress on the key matter of pay. Our members are not wanting anything huge, they’re just wanting something that will deliver a reasonable cost of living adjustment across the board. And that is something we are still struggling to get.”
“Most likely it will lead to delays. People who are engaging with both agencies will experience some delays during that period,” Mr Barclay told RadioLIVE Drive.
He said MBIE was spending millions on contractors while denying PSA members a living wage.
"We hope MBIE and IR will take the level of support for this action very seriously, and come back to the negotiating table ready to listen," Mr Barclay said.
The PSA will notify both agencies of the strike action.
Listen to the full interview with Glenn Barclay above.