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EMPLOYMENT

Minister urges employers to follow new min wage

Trevor  Mallard

Tuesday 1 April 2008, 10:11PM

By Trevor Mallard

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Labour Minister Trevor Mallard today urged all employers to make sure they start paying their youth workers the new adult minimum rate of $12 an hour - from today (April 1) – if they meet the key criteria. 

"Under the April 1 changes, 16 and 17 year olds who are currently on the youth rate and who have worked for 200 hours or three months since turning 16 – will automatically be entitled to move to the new adult minimum wage of $12 an hour on April 1.

"This is a significant pay increase from the current youth rate of $9 an hour. It comes with the move to entirely scrap the youth minimum rate and replace it with a new entrants minimum hourly rate of $9.60 an hour (80 per cent of the minimum adult wage) for 16 and 17 year olds for the first 200 hours or three months they work. After this period, the 16 or 17 year old must be paid the adult minimum wage.

"From April 1, the adult minimum wage will also rise to $12 an hour, from the current $11.25 rate – meaning our government has delivered on our promise of raising the minimum wage to $12 an hour ahead of time.

"Hundreds of thousands of workers will benefit from these changes – which reflect our government's promise to raise the adult minimum wage and also our commitment to ongoing support for families and workers," Trevor Mallard said.

"From April 1, 16 or 17 year olds who are supervising or training other workers will immediately be entitled to the adult minimum wage regardless of the number of hours they have worked.

"These major improvements to protections for workers have been made possible through the support of NZ First and the Green Party. I would like to thank them for their help and commitment to protecting New Zealand's youngest and most vulnerable workers," Trevor Mallard said.

"I would urge employers to make sure they follow these groundbreaking new statutory requirements. The increases mean we are ensuring that lower paid workers can share in the benefits of economic growth. I am sure they will also help employers recruit and retain staff in this time of labour shortages.

"These improvements follow other initiatives by the Labour-led government to support productive workplaces and to make sure low income families are reaping the benefits of economic growth. These include the introduction of four weeks annual leave – which marks its one year anniversary on April 1, and our introduction of paid parental leave. I would note that these improvements to the working lives of New Zealanders have all been opposed and repeatedly attacked by the National party."