Mixed feelings over pay rise | Rotorua News | Local News in Rotorua

An extra $1000 in the bank will make student life a bit easier for Dylen Marks this year.

The Rotorua 23-year-old Red Rat worker is pleasantly surprised to discover the minimum wage has been increased by 50 cents an hour to $13.50 - a boost of $1000 yearly for him.

"It's definitely better than nothing," he said.

"I'm going to put it towards university. I might be able to live a bit better this year."

Work colleague Stevie Baller, 22, is also pleased to find he will earn an extra $1000 this year as well. "It would have been better if it was a dollar but 50 cents is better than nothing at all," he said.

Mr Baller said he planned to add the extra money to his savings towards moving across the Ditch at the end of the year in search of a better lifestyle.

"It's a better lifestyle and there is more money to be earned over there," he said.

Part-time fast-food worker Carol Bach, 17, said the small increase was insulting for people trying to make a living.

"How are people supposed to live on $13.50? Think about it," she said. "This is why there are so many people collecting the dole. No one wants to work for stuff-all."

Labour Minister Kate Wilkinson announced the increase for the minimum wage and a rise of 40c an hour for training and new entrants' minimum wages yesterday.

Ms Wilkinson said the increase struck the right balance between protecting low-paid workers and ensuring jobs were not lost. An increase to $15 could result in the loss of between 5000 and 6000 jobs.

"If you look at the hospitality industry, retail, they're the ones that are most affected by it and they will just employ less people and not take people on," she said.

But unions say the top-up falls well short of what's needed by people struggling to get by.

Service and Food Workers Union national secretary John Ryall said it was a "tragic disappointment" for hard-working families surviving on the lowest wages.

"While an increase is better than nothing, this leaves thousands of hard working families in poverty and will increase inequality in New Zealand."

Many families were struggling to survive, Mr Ryall said.

"Many of our members will remain below the minimum wage, even though they are performing vitally important roles, providing care for some of the most vulnerable New Zealanders.

"The fact is $13.50 or $14 an hour are not a living wage.

"Until the very lowest pay rates are increased the equity gap will grow and with it, poverty in New Zealand."