Body:
The National Distribution Union, which represents many low-paid workers, says the minimum wage should be set at two thirds of the country's average wage.
From April, adults will be paid a minimum of $11.25 per hour, an increase of almost 10%.
The increase follows a yearly review of minimum wage rates by the government.
The union says while an extra $1 per hour is significant and will have a positive effect on employment, there's scope for more to be done.
It says New Zealand could afford to pay about $13.66 per hour as a minimum wage.
The minimum youth rate is to also go up, from $8.20 per hour to $9 per hour, keeping it at 80% of the adult rate.
