New Zealand minimum wage real value declines

A report by the New Zealand Council of Trade Unions (NZCTU) indicates that real wages for minimum wage workers have fallen by as much as 6.7 percent during the current government's term. The report, titled ‘Real wages and the cost of living, 2023–26’, highlights that lower-income households have been disproportionately affected by rising costs for essentials.

According to the findings, the minimum wage has decreased by 4.3 percent when adjusted for consumer inflation. When utilizing household living-costs price indexes that include interest costs, the decline in real minimum wage is estimated to be between 5.5 and 6.7 percent. This period has seen significant price increases for basic goods, including milk (up 27.9 percent), household energy (up 29.2 percent), and property rates (up 28.8 percent).

NZCTU President Sandra Grey stated that the government has failed to address the cost-of-living crisis, noting that rising unemployment and a more punitive welfare system have added further pressure on struggling families. The union is calling for interventions in monopolistic sectors such as banking, energy, and supermarkets, alongside tax reform and employment relation changes to stimulate wage growth.