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Minimum wage workers will get a pay increase from 1 April, but its less than the current rate of inflation.
Workplace Relations and Safety Minister Brooke van Velden said the rate would go up by 2 percent, from $23.50 to $23.95.
She said it would benefit about 122,500 working New Zealanders and struck a balance between keeping up with the cost of living and not adding further pressure to businesses.
"I know those pressures have made it a tough time to do business, which is why we have taken this balanced approach. With responsible economic management, recovery and relief is coming.
"I am pleased to deliver this moderate increase to the minimum wage that reflects this Government's commitment to growing the economy, boosting incomes and supporting K
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