Paying the Living Wage is a Matter of Justice

The Living Wage Movement recently announced an increase in the Living Wage rate for the 2023/24 financial year. The new hourly rate of $26.00 is $2.35 higher than the previous rate, reflecting the recent increase in the cost of living.

This increase reflects the real cost and usage of everyday basic items, with some room for financial resilience, rest, or recreation. Rent, heating, clothing, transport, GP visits, insurance and savings are among twelve items used to calculate the Living Wage. Also included are items families need to live with dignity and participate in society, such as recreation, communications, and saving for emergencies.

The Living Wage Movement wants to see all working people thriving, not just surviving. People who earn the Living Wage won’t struggle to buy the basics and will have all their needs met. They won’t have to choose between paying rent and warm clothing for their kids. They will feel valued by their employer and society. The Living Wage is increasingly important for our lowest paid workers, who do essential work in our communities, and bear the brunt of a cost-of-living crisis.

Rev. Stephen King, Co-Vicar at St Peter’s on Willis and Co-Vicar General for the Wellington Diocese is the Chair of the Board of the Living Wage Movement and has been involved in the movement since its inception in 2013.

He believes that paying the Living Wage is a moral imperative and a matter of justice and says, “When people are paid a Living Wage, they can live with dignity and participate in society. They can save for the future, afford insurance, and have a financial buffer for unexpected costs. They can pay for their children to join sports or after-school activities. They can drop hours at work or drop their second/third job for a better work/life balance. All these things are important for people’s wellbeing and happiness.”

The Wellington Diocese is a Living Wage accredited member.

Stephen says, “Paying the Living Wage is a no-brainer for us. As a church, we are committed to social justice and the Living Wage is a practical way to live out that commitment. We want our staff to feel valued and respected, and paying the Living Wage is one way to do that.”

The Living Wage is voluntary. However, accredited Living Wage Employers agree to implement the rates set by the Living Wage movement. The Living Wage rate is calculated every five years and is independently calculated by the Family Centre Social Policy Research Unit.

The Living Wage Movement believes that paying the Living Wage is good for business. Employers who pay the Living Wage report increased worker wellbeing, retention, and job satisfaction. Staff who stay save on recruitment and retraining costs. Accredited Living Wage Employers become attractive to job seekers and send a message to staff and the community about their values and priorities.

There are over 370 accredited Living Wage Employers in New Zealand, from a variety of industries including fashion, hospitality, food, banks, law, insurance, community, fitness, plumbing, and even a bouncy castle hiring company. Together they employ over 51,000 people and contract many others. The Living Wage Movement administers the accredited Living Wage Employer programme, and consumers can be sure that accredited Living Wage Employers are paying the current Living Wage rate to all their workers and regular contractors.