NZ First pledges minimum wage and Working for Families increases

New Zealand First has committed to increasing the minimum wage by at least the rate of inflation every year during its next term if elected. Leader Winston Peters announced the policy at a public meeting in Invercargill on Saturday. The party aims to ensure workers can afford basics like food and rent without falling behind inflation.

The party also pledged to make the current $50 weekly in-work tax credit boost permanent and add an additional $70. This would result in a total increase of $120 per week for Working for Families recipients. The current temporary boost is scheduled to expire on 31 March 2027, or sooner if 91 petrol prices stay below $3 per litre for four consecutive weeks.

The proposed Working for Families changes are estimated to cost between $500 million and $600 million annually. Peters stated, “Working families need a far greater concentration of help right here, right now,“. One report noted the temporary increase was originally introduced following the Iran war.

The announcement comes as the ACT party has campaigned on a three-year minimum wage freeze. NZ First noted that while the minimum wage rose from $22.70 to $23.95 since the 2023 coalition took office, this 5.5% increase was below the 8% rise in prices. The party claims it has been responsible for yearly minimum wage increases in 2005, 2017, and 2023.

How it developed

• Sat 10 Oct, 2:38pmThe report specifies that the temporary Working for Families increase was brought in following the Iran war.

Where reports differ

• One report states the total increase to the credit would be $120, while another specifies the total credit would reach $217 per week

Compiled from reports by Stuff, 1News, RNZ and The Post.