The Living Wage rate will increase again this year, from $23.65 to $26 per hour, from 1 September.
This has an impact on government policy to adopt a living wage rate for cleaners, caterers and security guards under public service department contracts. All agencies are encouraged to implement the policy.
All existing contracts will not be affected by the change. For new contracts, we have revised and updated our minimum living wage rate projection for the next five years on our website.
This projection is designed to provide agencies with as much certainty as possible to plan and budget for the duration of the contract.
The increase is due to a full recalculation of the Living Wage rate by the independent Family Centre for Social Policy Research Unit. The review considers price movements and living expenses across key areas of household expenditure. The new rate also reflects rising household inflationary pressure over the last couple of years.
You can read more about the revised living wage rates, relevant policy and guidance here:
Living wage for public service contractors – Beehive.govt.nz