New Zealand’s minimum wage is set to soar to $20 within four years under a new coalition deal.
The increase will occur in stages, starting in April 2018 when pay for workers on the lowest income will rise from $15.75 to $16.50 NZ dollars an hour.
Workers on minimum wage welcomed the announcement, with the Council of Trade Unions hailing it as a "great start".
But while low‑income workers were celebrating, some small businesses expressed concern.
Employer Lee‑Anne Kilgour worries about how her business will handle a looming increase to the minimum wage.
She runs a cleaning company with nine staff.
At the moment, she pays her staff more than the minimum wage. They are on $16.50 or $17.50 NZ dollars an hour, compared to a minimum of $15.75.
But with the first minimum rate set to rise next year, that premium will be gone.
Kirk Hope, chief executive of BusinessNZ, says the plan will put pressure on small businesses.
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