The Case for a Living Wage

A Living Wage for all workers can not be understated. It allows everyone to participate in a fair and equitable economy where the opportunity to participate and thrive regardless of your  background is afforded to everyone. A Living Wage goes further than a basic subsistence minimum wage, as it can provide for sustainable livelihoods and social protection from poverty and socio-economic inequalities. 

So what is a Living Wage? 

A Living Wage, as calculated annually by  the independent Family Centre Social Policy Research Unit, is the amount a full-time worker would need to earn to cover their basic costs of living for a modest yet decent lifestyle. It would enable them to pay for essentials like housing, food, transportation, healthcare, childcare and create a small buffer to allow them to have some savings or money for unexpected circumstances, without the reliance on government subsidies or borrowing debt.  

As of September the 1st 2025, the Living Wage in New Zealand is $28.95 which is a 4.5% increase on last year's $27.80 and a full $5.45 more than the current minimum wage of $23.50. The Living Wage is independently updated and is both worker and family focused to keep pace with the rising costs of inflation and real world expenses. There are currently over 300 accredited employers nationwide who voluntarily pay their employees a Living Wage, Coromandel Workers Council is one of them. 

Is there really a need for all workers to receive a Living Wage? 

The short answer is yes. If you work 40 hours full time that's an additional $11,336 a year before tax. The long answer? One in five children in New Zealand lives in poverty, many with parents working hard only to scrap by on their minimum wages that can force tough choices:  like heat or eat? Adopting the Living Wage as a standard by incentivising employers could help to ease these factors and make everyone’s life a little easier. Research has shown that there is a clear spike in worker well-being both at home and in the workplace precisely at the Living Wage threshold. Workers below this line often report higher stress and anxiety as well as depression and even health issues as their diets often consist of low cost unhealthy food. Child Poverty Action Group modelling predicts a 30-40% drop in child poverty and related issues. 

Overseas data shows that no significant job losses or inflation come from increasing wages as some skeptical of the idea have suggested. In fact employment often rises as better paid workers spend more locally. There are also suggestions that the New Zealand tax payer would be better off by removing $400-$600 million annually from government subsidies top-ups like Working for Families and accommodation benefits.  

For employers data suggests that workers are less likely to leave with a 30-50% decrease in staff turnover, fewer sick days taken and higher productivity. Every $1 in Living Wages generates $1.60 in local economic activity through increased spending. In Northland, small and medium businesses like Oromahoe Kindergarten report attracting “qualified, quality workers” and boosting disposable income that circles back into the community. 

Other examples of businesses that pay staff a Living Wage include Queenstown based Browns Ski Shop whose owner Kris Vermier accredited it with retaining top talent amidst seasonal flux, calling the shift “a reminder to do the right thing”

Auckland based Tonzu Foods who produce organic dairy free products like cheese and tofu joined the accreditation in 2023  as part of its sustainability ethos. With a small team of 20 employees the company viewed the Living Wage as aligning with their values “if we’re going to make ethical products we should pay ethical wages”.

Chia Sister, a Wellingtonian women lead superfoods snacks company that utilises New Zealand grown chia seeds also gained accreditation in 2023 for paying the Living Wage to support its mostly female workforce. Founders Sarah and Katie Heeringa aimed to walk the talk on empowerment. 

These are just a couple of examples of the 342 accredited employers who pay their employers a Living Wage, and the momentum is growing. The Living Wage shouldn’t be viewed as a burden to employers, but rather an opportunity to create a New Zealand where child poverty can be eradicated and all New Zealanders can live  fuller lives. Do you receive a Living Wage? How would your life benefit from receiving a Living Wage if you currently receive the minimum wage?