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Minimum wage increase, the good and the bad Alex Carter (she/her)
As of April 1st, minimum wage is increasing to $21.20 from $20.00 an hour. This announcement was made to help those Kiwi’s who have gone above and beyond during the pandemic. What effect does this increase have on students? The minimum wage increase is being implemented by the government to support the minimum wage workers. Minimum wage increase supports productivity within the workplace, as it drives a further incentive for staff who are now paid more while dealing with different hardships on the job. The increase now supports low wage income and closes the gap slightly between class systems that are defined by pay roles. Many students have part time jobs to help financially support them during their time at university, taking up jobs at the supermarket for example is often a good place to start. In a recent survey, students have shared their concerns and issues regarding the rise. With contradicting consequences of the rise, students were initially excited to see a small raise in their income but concluded that inflation will occur in stock markets. “I am confused as to why the government is actively trying to increase inflation with this policy when it is a topical issue that inflation is already at a concerning level” disclosed an anonymous UC student.
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With prices rising, affordability, especially for minimum wage individuals, is becoming increasingly difficult during the pandemic. With covid cases on the rise, accessibility to work will be an increasing issue. Covid will inevitably stop retail, hospitality, and supermarket workers from attending their roles while they recover from the virus. Employers may find this rise difficult, as supporting staff during the pandemic has already proven tough for smaller businesses. With an increase, employers may not be able to maintain an above minimum wage for staff. “I was previously above minimum wage, but with the upcoming increase my boss can’t afford to pay me more than he already was, so I will be back on minimum wage,” shared an anonymous UC student. However, for people who earn more than living wage, who are on salary, their income will not change until their employer’s annual review. This makes the difference in wage gap between minimum and salary (job dependent) $1.20 smaller than previous years. The good news is that, with a small increase in hourly wages, students will be earning more income to support their lifestyles, and with prices of petrol growing and inflation of other products, every cent counts. Disclaimer - All quotes provided from students are taken from a survey conducted on the UCSA Noticeboard.
