8 February 2023
Retail NZ is disappointed with the Government’s decision to increase the Minimum Wage.
“Retail NZ has advocated directly to the Prime Minister, Minister of Workplace Relations and Safety, the new Small Business Minister and to government officials on the impact any increase in the Minimum Wage will have on the retail sector and asked for a hold in the increase – it is disappointing the impacts and concerns have not been heard”.
“The increase of $1.50 per hour, meaning a rate of $22.70 an hour, will mean many retailers will over time review product prices, limit opening hours, and inevitably means consumers are paying more for products. The impact will be most felt in small retail businesses who just do not have any more wiggle room – many of whom make up the 30 per cent of retailers who are not confident they will survive the next 12 months.”
“The reality is that the vast majority of retailers pay well above the minimum at an average of $26.65 in 2022. However, any increase in the Minimum Wage has an impact on all wage rates, not just those at the bottom. Those who are on the Minimum Wage are typically at entry level roles who quickly progress through the retail sector – but the additional reality is any increase at the bottom rates evidently increases all rates that are then just passed onto the consumer.”
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