A minimum wage increase of $1.20, bringing it to $21.20 per hour has been confirmed for 1 April by the government.

The starting-out and training minimum wage will also increase from $16 to $16.96 per hour.

Workplace Relations and Safety Minister Michael Wood confirmed the moves in a statement this morning, saying it would directly benefit about 300,000 workers, and help many households most impacted by Covid-19.

"For someone working a 40-hour week on the minimum wage, this increase will see them earning an extra $48 a week, and almost $2500 more each year," he said.

He said the government was delivering on an election pledge with the increase, and remained committed to supporting employees and employers throughout the Omicron outbreak.

"The wage increase will also have a stimulatory effect on the economy as many workers will spend the extra money on goods and services, which in turn, will help support businesses," Wood said.

In September, the Living Wage - the rate at which someone would need to afford the necessities of life and participate as an active citizen - increased to $22.75.

It comes after inflation hit its highest level in 30 years, with an annual rate of 5.9 percent for 2021 and an increase of 1.4 percent in the three months ended December.

Republished by Arrangement