The minimum wage for New Zealand has officially increased by 5%, now at $20. Many sectors of work have been affected by the Covid-19 pandemic, mostly those in hospitality, tourism, retail and construction. The people most likely to be affected by the Covid19 pandemic are the same people who are likely to benefit from the minimum wage increase.
The opposition National party disagreed with the minimum wage increase: “Sharply increasing the minimum wage during a period of extreme uncertainty for small businesses is economic vandalism.” For essential workers, this increase is not just about the money but the dignity of being rewarded by the community for the sacrifices they’re making.
New Zealand’s minimum wage was already among the top five in the world.
The tax rate for the country’s highest earners has also been raised to 39%, affecting the top 2 percent of earners. This new tax rate puts tax structuring back in the limelight.
Inland Revenue warns against high-earners to not try to avoid the new tax rate and say they will be keeping “a close watch for any activity by such people that looks like its primary aim is to avoid the 39 per cent.”