Employment Relations for Global Legal Monitor- myassignmenthelp

Question: Why the minimum wage rates in New Zealand considered in need of change? Answer: The workers work for some payment in return for the work or services performed by them. The employers must abide by with the laws governing the minimum wage claims for all the workers comprising of adults, starting out workers, trainees and disabled workers. The minimum wage rates apply to all the workers with age of 16 years and above, comprising of full and part time, casual, working from home, fixed term employees and who are paid wages , salaries and commission and piece rates (Employment New Zealand ,2018). The wage rate in New Zealand is governed by Minimum Wage Act 1983. The minimum wage rates have been increased from $16.50 per hour and $ 660 for 40 hours per week. The reasons for the increase in the wage rates are that the purchasing power of the citizens of New Zealand has been decreased by 23.9 %. To enhance the living standards of the citizens of New Zealand, the government has increased the minimum wage rates. Additionally, to increase the Gross Domestic Product of the Economy, the government should increase the minimum wages. Since the monetary compensation given to labor and their spending habits shall increase the purchasing power so higher minimum wages would create more demand for goods and services which boosts the economy. Another reason for increasing the minimum wages is to increase the productivity of the industries. Since higher wages insist the business to employ more productive resources such as effective equipment and machinery which would make them competitive on a national and international level. It also helps to keep in pace with the inflation as the annual inflation rate in New Zealand is 0.1 % and increase in the minimum wages by 3.4 % shall help the workers with sufficient money for their survival (Library of Congress,2016). So, to conclude, the minimum wages should be increased to ensure the economic progress of the employees, employers and of the country as well. References Employment New Zealand (2018). Pay and wages. Retrieved April 30th, 2018 from https://www.employment.govt.nz/hours-and-wages/pay/ Library of Congress (2016). Global Legal Monitor. Retrieved April 30th, 2018 from https://www.loc.gov/law/foreign-news/article/new-zealand-minimum-wage-to-increase-to-15-25-per-hour/