Meagre rises in income not keeping up with rising costs

New figures showing the smallest rise in hourly earnings in over a decade highlight the urgent need to raise the minimum wage and make sure that vulnerable families can make ends meet, the Green Party said today.

Statistics New Zealand released the New Zealand Income Survey today showing that the change in median weekly income from wages and salaries is the smallest increase since 1999. When adjusted for inflation, median household weekly income is down 6 percent since National came to power in 2008.

"Living costs continue to rise while incomes are falling behind," Green Party Co-leader Metiria Turei said.

"Median incomes of those in employment rose by just 0.7 percent in the year to June 2012, the lowest since 1999.

"When you look at households, their incomes are not keeping up with the rising cost of living.

"Since 2008, median household weekly income has risen 3.7 percent while the cost of living has risen 10.1 percent.

"Looking at the data for households is a better reflection of how changes in income are affecting New Zealand families," Mrs Turei said

Raising the minimum wage to $15 an hour is part of the Green Party's plan to bring 100,000 children out of poverty by 2014.

"We urgently need to raise the minimum wage to $15 an hour, and lock in future increases to ensure that working families can make ends meet," Ms Turei said.

"Raising the minimum wage to $15 an hour would be worth approximately $60 a week for someone working full time on the minimum wage.

"270,000 children are growing up in poverty, and 40 percent of them have parents who are in paid work.

Mrs Turei said she was also concerned about the wage gap between men and women in the income survey.

"Average hourly incomes as measured by this survey show a persistent 10 percent gap between what men and women earn.

"Jan Logie's Equal Pay Amendment Bill is one solution, making it easier for employees to find out whether there is a gender pay problem in their workplace," Mrs Turei said.

Table of household median income adjusted for inflation:

Source: Statistics NZ, New Zealand Income Survey, June 2012, CPI 2012