Raising the minimum wage and raising the tax rate for people with higher incomes in New Zealand

The New Zealand government is offering a minimum wage of $ 20 an hour and will also raise the tax rate for most income earners to 39 percent. The changes will take effect Thursday, as they will also increase unemployment benefits and sick pay on a smaller scale.

Jacinda ArdernPhoto: DAVID LINTOTT / AFP

The government estimates that the $ 1.14 increase in the minimum wage will affect 175,000 people and increase annual wages by $ 216 million nationwide. The tax changes will affect income earners over $ 180,000, and it is estimated that 2 percent of New Zealanders fall into this category. The government estimates that this will be $ 550 million annually for the budget.

a Guardian cites OECD dataUnder which New Zealand’s minimum wage is already among the highest in the world. During the coronavirus pandemic, the work of those earning the minimum wage has often proven indispensable to running the country, which is why trade unions have urged an increase in the minimum wage already in 2020.

Prime Minister Jacinda Ardern said the changes will fulfill their campaign promise, but they still have a lot to do: build more homes for the country, improve the healthcare system, invest more in education, and improve training opportunities. New Zealand housing costs remain high worldwide.

a Recently Reelected went smoothly Ardern has already raised the minimum wage several times during its previous round, totaling $ 4.25 since 2017. The Prime Minister reached the world press last year advising companies to consider switching to a four-day workweek.

The largest opposition party, the right-wing National Party, has opposed raising the minimum wage, saying that the current period carries a lot of uncertainty for small entrepreneurs, and the minimum wage is considered economic sabotage.

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