Govt Justifies 50c Hourly Minimum Wage Hike

February 9, 2012 9:14 PM EST

New Zealand workers were not pleased with the 50c-an-hour increase in the minimum wage, but government says the amount strikes the right balance, Fairfax NZ reported.

Prime Minister John Key said the government was trying to "get the balance right" between "making sure that people can feed their children and look after their families and themselves, and also ensure that they keep their job."

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The increase brings the minimum wage to $13.50 an hour, which translates to a $20 increase weekly, to $540 a week (before tax) for fulltime workers.

But co-leaders of the the Maori Party, Tariana Turia and Pita Sharples, said the minimum wage needed to be $16 an hour.

The Maori Party said the approved hike lacked courage and failed to deliver for the poor.

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Labour leader David Shearer said the rise was "paltry."

"[It] will do little to help Kiwis who are working hard but simply can't earn enough to support their families," Mr. Shearer told Fairfax.

Labour campaigned on raising the minimum wage to $15 an hour.

However, Labour Minister Kate Wilkinson said Labour Department has conducted a study in which it was determined that a $15-an-hour increase would mean the termination of up to 6,000 workers to accommodate the cost.

This article is copyrighted by IBTimes.com.au, the business news leader