Government Wants Living Wage Scrapped for Tenders

The Government's Minister for Economic Growth, Nicola Willis, has proposed to axe approximately one third of the red-tape rules for companies when bidding for Governmental contracts. The main contentious one being paying the Living Wage in contracts for cleaning, catering and security guard services.

This proposal has of course faced opposition from groups like the Living Wage Movement and the E tu union, who argue that removing the living wage requirement would be highly detrimental to workers' lives.

The Government point of view is that removing many of the requirements for companies wishing to tender for Government contract gives many more New Zealand businesses access to government contracts worth $50 billion a year.

The Living Wage is an hourly rate set apart from the adult minimum wage which employers can voluntarily pay, and decided upon annually by the New Zealand Family Centre Social Policy Unit, the intention being the figure provides workers enough money to live with dignity. At September 1st 2025 the Living Wage Rate will be $28.95 per hour.