There are concerns the hike to minimum wage could be devastating for businesses.

The Government has announced the minimum wage will rise by $1.50 to $22.70 from April.

Business New Zealand CEO Kirk Hope told Mike Hosking the ability for businesses to pass this cost on is very low.

He says if a business has no capital left effectively to pay this, and can't increase prices because then they'll face a decrease in demand, they're in a difficult position.

LISTEN ABOVE

There are concerns the hike to minimum wage could be devastating for businesses.
The Government has announced the minimum wage will rise by $1.50 to $22.70 from April.
Business New Zealand CEO Kirk Hope told Mike Hosking the ability for businesses to pass this cost on is very low.
He says if a business has no capital left effectively to pay this, and can't increase prices because then they'll face a decrease in demand, they're in a difficult position.
LISTEN ABOVE

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. 

Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers. Whether you’re a small business owner or interested in what’s going on in the Big End of Town, this podcast encompasses the sharpest voices and minds in the world of business.

Best of Business is the home of all things business at Newstalk ZB, from morning market updates right through to incisive interviews with New Zealand’s top business leaders and decision makers.