17 December 2024

Two workforce-related announcements by the Government today are an early Christmas present for retailers, Retail NZ Chief Executive Carolyn Young says.

The decision to increase the minimum wage by 1.5% to $23.50 an hour from 1 April 2025 will be a relief to retail employers during challenging economic times, Ms Young says.

“Every cost increase has to be passed on to consumers so we are pleased the Government has limited the adult minimum wage rate increase to 1.5%. Making the announcement at this time also gives employers time to plan their staff needs for next year.”

Ms Young noted that Woolworths New Zealand has just agreed a new collective agreement which includes minimum wage increases of 6.8% over the next two years.

“We encourage retailers to look after their workers and pay them fairly. The 230,000 people working in retail provide an essential service to New Zealanders. Retailers know they must pay competitive rates to attract the best people. But wages have been increasing at a rate faster than growth in revenue across the retail sector,” Ms Young says.

Retail NZ is also welcoming changes to the Accredited Employer Work Visa, including the removal of the median wage requirement. 

“Retail employers in regions with limited labour pools sometimes need to hire migrants for lower skilled roles, because there are no New Zealanders available. The need to pay median wage has been a barrier to using migrants to fill these roles,” Ms Young says.

Employers will also look forward to the introduction of greater streamlining of the AEWV process for lower risk employers. This is a step that Retail NZ has called for, to recognise good employers and make it easier for them to fill vacancies.

For the latest Retail NZ Media Releases click here.