NZ First pledges minimum wage rises in line with inflation for three years
NZ First would lift the minimum wage by at least the rate of inflation each year for three years if it returns to government.
Winston Peters announced the pledge at a public meeting in Invercargill, according to RNZ. The commitment would run for three years. It follows the most recent rise, which sat below inflation.
The plan sets a floor under yearly increases. Instead of naming a dollar figure, it would link the rise to inflation. That is indexation, where pay moves up with the cost of living.
It is a change from the party's 2023 position. Then it promised to look at whether the adult minimum could reach at least $25 an hour, with a tax concession for businesses to help pay for it, according to its published policies. The Invercargill pledge has no tax concession. It is a direct guarantee to match or go above inflation.
The starting point is $23.95 an hour for adults from 1 April 2026, according to MBIE. The Government described that 2 per cent lift as balancing business and worker needs, and as part of the NZ First-National coalition commitment, according to Beehive.
Peters also promised a larger, permanent boost to the Working for Families in-work tax credit. The party would keep the temporary $50-a-week increase brought in earlier this year to help families affected by the fuel crisis. That payment is due to end in April, or if 91 octane petrol falls below $3 a litre for four weeks in a row.
NZ First would go further and add another $70 a week, taking the total to $120 a week. The party put the cost of the $120-a-week policy at $500 million to $600 million a year.
The party has also said it would campaign on cutting the company tax rate to 20 per cent for small and medium firms with turnover under $30 million, according to its announcements.
The minimum wage plan differs from ACT. ACT is campaigning to freeze the minimum wage for three years and to cut the youth training rate.
The broader context here is coalition arithmetic. Minimum wage settings and Working for Families are both Cabinet decisions and would need coalition agreement. A guaranteed inflation rise removes year-to-year choice. A permanent $500 million to $600 million lift in the in-work payment locks in yearly spending. Both would leave a future finance minister with less room in Budget talks, and both would sit across the table from ACT's freeze.
Looking at what this means for officials and advisers, the detail to watch is how the three parts work together. Indexation, a higher in-work payment and a lower SME rate pull different levers. One lifts costs for employers. The others use the tax and transfer system to ease pressure on households and businesses. How the three are ordered in any coalition talks will matter more than any single number.
