LCI June 2016 quarter

Response rates Target: 94 percent Achieved: 95.5 percent The impact of the minimum wage change The adult minimum wage increased from $14.75 an hour to $15.25 an hour (3.4 percent increase) on 1 April 2016. For the June 2016 quarter, 14 percent of all surveyed salary and ordinary time wage rates increased – 2 percent of rates increased due to the minimum wage increase. If the wages that increase to the new minimum wage had not changed, the LCI including overtime would have still increased by 1.5 percent. However, the effects can be seen within some industry and skill-level breakdowns. In the year to the June 2016 quarter, retail trade and accommodation (industry group GH) increased 2.1 percent. If we had processed the increases due to the minimum wage increase in the LCI as no change, then in the June 2016 quarter, retail trade and accommodation (industry group GH) would have increased 1.7 percent. In the year to the June 2016 quarter, skill level 5 increased 2.1 percent. This level includes occupations that require a New Zealand Register level 1 qualification, no qualification, or a short period of on-the-job training (eg clerical and administrative workers, labourers, sales workers). If the increases due to the minimum wage increase were treated as unchanged, wage rates for skill level 5 occupations would have risen 1.7 percent for the year. en-NZ