Lifestyle

The change on April 1 will increase the income of 1.4 million New Zealanders |

Changes in minimum wages, key benefit levels and old-age pension rates in force today will increase the income of approximately 1.4 million New Zealanders.

“This government is committed to increasing the incomes of all New Zealanders as part of laying the foundation for a better future,” says Carmel Sepuloni, Minister of Social Development and Employment.

“In the last fiscal year, the average wage of working New Zealanders increased by 3.1%, which means that retirement pension and benefits levels will increase by the same amount.

“This is the second rise in major benefits under the new indicator of wage rates. In the previous index of the CPI, beneficiaries would have received only a 1.15 percent rise.

“This change is based on the introduction of last year’s $ 5.5 billion family package, winter energy payments, and a major $ 25 weekly increase in benefits.

“Today, we also see the largest increase in reduction levels in 20 years, which means that those receiving major profits and part-time jobs can keep more of what they earn. I will.

“I know there’s still a lot to do, but it’s going well,” said Carmel Seproni.

Those who earn the minimum wage will also receive more money from today.

“Today’s rise to $ 20 an hour is estimated to boost wages for the economy as a whole by $ 216 million and give New Zealanders more money to spend on local businesses,” said Michael Wood, Minister of Workplace Safety. Stated.

“This will increase the income of about 175,500 New Zealanders, which means an increase of $ 44 a week before tax on Kiwi, who works full-time at the minimum wage.

“There are many kiwis that have exceeded the minimum wage in the fight against COVID. Supermarket workers, cleaners, security guards, and anyone who served us very well during the blockade deserves a salary increase. I agree, “said Michael Wood.

Other changes today are:

-The minimum wage for start-up and training will rise to $ 16.00 per hour, maintaining 80% of the adult minimum wage.

• A new maximum tax rate of 39% will be applied to income above $ 180,000.

・ Student allowance payments will increase by 1.15%.

  • Annual general adjustments to increase foster care and orphan benefits and unsupported child benefits by 1.15%.

Attention to editors

contact information:

Prime Minister’s Office – Marks Lehman 021 859 524

Wood Minister’s Office – Tom James 027 308 6010

Change of benefits

As a result of the major benefits and annual general adjustments for retirement pensions on April 1, 2021, more than 1.2 million individuals are expected to receive more financial assistance.

Raising the minimum wage will affect 175,000 people. Some people with the minimum wage will also receive the main benefit (or part of it). Therefore, it is estimated that 1.4 million individuals will be affected by today’s changes.

about:

• 369,000 people who make a major profit will see a 3.1% increase in payments as net average wages fluctuate.

• 830,000 people receiving New Zealand’s old-age pension and veterans’ pension will have a 3.1% increase in their pension and will maintain 66% of their net average wage.

• 60,000 students receiving student allowances see a 1.15% increase indexed in the CPI (excluding tobacco and tobacco subgroups).

• 70,000 people receiving only supplementary support will see an indexed increase of 1.15% in the CPI (excluding tobacco and tobacco subgroups).

– Due to the minimum wage adjustment, 175,000 people will see wage increases.

Adjustment of benefit rate

The following table shows the impact of net average wage adjustments on the key benefit rates selected.

Increased benefits may reduce other payments people receive, such as temporary additional support and childcare support, but in general, these changes will make people better.

Main benefits (net price) Before April 1, 2021 From April 1, 2021 Increased amount
Job Seeker Support – Singles 25+ $ 250.74 $ 258.50 $ 7.76
Job Seeker Support-Couple (No Children) Total $ 401.20 $ 413.62 $ 12.42
Job Seekers – Total Couples with Benefits (Children) Partners $ 428.06 $ 441.30 $ 13.24
Supported Life Payments – Singles 18+ $ 307.14 $ 316.65 $ 9.51
Supported Life Payments-Couple (No Children) Total $ 495.22 $ 510.54 $ 15.32
Only parental support $ 375.17 $ 386.78 $ 11.61
Payment for young parents – total for couples (with children) with partners $ 227.46 $ 234.50 $ 7.04

Increases over the last four years (including a $ 25 increase in benefits announced in 2020):

Main benefits (net price) April 1, 2017 From April 1, 2021 4 year increase
Job Seeker Support – Singles 25+ $ 212.45 $ 258.50 $ 46.05 21.68%
Job Seeker Support-Couple (No Children) Total $ 354.06 $ 413.62 $ 59.56 16.82%
Job Seekers – Total Couples with Benefits (Children) Partners $ 379.34 $ 441.30 $ 61.96 16.33%
Supported Life Payments – Singles 18+ $ 265.54 $ 316.65 $ 51.11 19.25%
Supported Life Payments-Couple (No Children) Total $ 442.54 $ 510.54 $ 68.00 15.37%
Only parental support $ 329.57 $ 386.78 $ 57.21 17.36%
Payment for young parents – total for couples (with children) with partners $ 202.31 $ 234.50 $ 32.19 15.91%

Figure with family package

Increase in estimated average income by payment type as of April 1, 2021 compared to policy settings in late 2017

Family type Family tax credit Best start Main benefits Accommodation supplement Temporary additional support Total except winter WEP Winter total
With children
Couple with kids $ 41.20 $ 24.36 $ 46.36 $ 29.38 -$ 5.78 $ 135.53 $ 31.48 $ 167.01
Only parent $ 32.23 $ 17.29 $ 40.62 $ 31.41 -$ 6.10 $ 115.46 $ 31.79 $ 147.24
Without children
Couple without children $ 0.00 $ 0.09 $ 44.39 $ 20.11 -$ 4.41 $ 60.19 $ 29.99 $ 90.18
No single kids $ 0.00 $ 0.03 $ 35.32 $ 7.64 -$ 1.81 $ 41.18 $ 19.76 $ 60.94
All beneficiaries
total $ 9.64 $ 5.29 $ 37.49 $ 14.98 -$ 3.15 $ 64.26 $ 23.68 $ 87.94
With children $ 33.48 $ 18.28 $ 41.43 $ 31.13 -$ 6.05 $ 118.26 $ 31.74 $ 150.00
Without children $ 0.00 $ 0.04 $ 35.90 $ 8.45 -$ 1.97 $ 42.41 $ 20.42 $ 62.83

Aging

Benefits (tax code M) Before April 1, 2021 From April 1, 2021
Living alone $ 423.83 $ 436.94
Both are NZ Super qualified couples (total) $ 652.04 $ 672.22

Note: There are several scenarios for NZ Super and Main Benefits.A complete list of rates can be found in The Gazette

Change mitigation threshold

Thresholds and rates of mitigation from April 1, 2021: Only parents, supported living-paying people, and people under the age of 65 with a veterans’ pension: Payments are reduced by 30 cents for $ 1 when the weekly income reduction threshold of $ 160 is reached, and 70 cents for $ 1 when the second threshold of $ 250 is reached.

Those who enjoy job seeker support and other key benefits, or who include an unqualified partner in the New Zealand Pension Fund or Veteran Pension: When you reach the $ 160 weekly income reduction threshold, your payments will be reduced by 70 cents for $ 1.

For couples where one partner gets NZ Super and the other partner gets job seeker support or supported living payments: The mitigation applies only to job seeker support or supported living payments. Profit will be reduced by half of the above. NZ supermarkets are not counted as combined income.

merit Current April 1, 2021
Job seeker support (excluding only one parent) Income above this threshold will be reduced to 70 cents for $ 1.
$ 90 $ 160
· Job Seeker Support – Only Parent · Only Parent Support · Supported Living Expenses · Veteran Pension (Under 65) Income above this threshold will be reduced by 30 cents for $ 1.
$ 115 $ 160
Income above this threshold will be reduced to 70 cents for $ 1.
$ 215 $ 250
-NZ Super / Veteran Pension that includes unqualified partners. Income above this threshold will be reduced to 70 cents for $ 1.
$ 115 $ 160

• Raising the reduction threshold to $ 160 and $ 250 per week is expected to yield an average of $ 18 per week for approximately 82,900 individuals and families. these:

– Approximately 29,500 individuals and families currently receiving working-age benefits are expected to benefit from this change with an average weekly profit of $ 29.

– Approximately 3,100 individuals and families receiving NZ Supermarkets are expected to make an average of $ 21 per week.

– More than half (50,300) are non-beneficiaries receiving accommodation supplements, earning an average of $ 12 a week.

– Approximately 50,200 people are families with children. It is estimated that these changes will reduce child poverty by approximately 6,000 (+/- 3,000) on AHC50 fixed-line measurements and 2,000 (+/- 3000) on BHC50 measurements in 2021/22.

Who will be paid the minimum wage?

  • New Zealand employs an estimated 57,700 minimum wage workers, including the following sectors:
    • Hospitality: 12,500 or 13.2% of workers
    • Retail: 15,600 or 8.2% of employees
    • Management services: 2,900 or 4.0% of employees
    • Manufacturing: 4,700 or 2.4% of employees
    • Health: 3,800 or 1.6% of workers
  • Large numbers of Maori, Pacific people, youth and women at the minimum wage:

o 15% of minimum wage workers aged 16-64 are Maori

o 9% of minimum wage workers aged 16-64 are Pacifica

o 49% of minimum wage workers between the ages of 16 and 64 are between the ages of 16 and 24

o 56% of minimum wage workers aged 16-64 are women.

  • Approximately 175,500 workers (currently earning between $ 18.90 and $ 20.00 per hour) will receive a new minimum wage increase.



The change on April 1 will increase the income of 1.4 million New Zealanders |

Source link The change on April 1 will increase the income of 1.4 million New Zealanders |

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