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New Zealand recently announced a rise in their minimum wage to NZ$20 (S$18.88).
The previous minimum wage was set at NZ$18.90 (S$17.80).
According to the Minister for Workplace Relations and Safety Michael Wood, the rise in minimum wage is expected to boost wages across the economy by NZ$216 million (S$204.2 million).
He further stated that this will lift the incomes of around 175,500 New Zealanders.
“There are many Kiwis who earn the minimum wage who have gone above and beyond in our fight against COVID.
I think everyone agrees those who served us so well during lockdown – including supermarket workers, cleaners, and security guards – deserve a pay rise.”
They will also be raising taxes on the top two per cent of earners in New Zealand, those who make over NZ$180,000 (S$170,000).
The tax rate on income earned over that amount rises to 39 per cent. Previously, everyone who earned over NZ$70,000 (S$66,200) paid a tax rate of 33 per cent.
This new tax increase is predicted to bring in NZ$550 million (S$520 million) to the economy in 2021.
Other changes include:
- The starting-out and training minimum wages will rise to NZ$16.00 (S$15.13) per hour, to remain at 80 per cent of the adult minimum wage.
- Student Allowance payments will increase by 1.15 percent.
- Annual General Adjustment to increase Foster Care Allowance and the Orphan's Benefit and Unsupported Child's Benefit by 1.15 per cent.
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