Living Wage

Although the minimum wage will rise next month by 50 cents, from $14.75 to $15.25 an hour, it is still very low. This is $610 a week for a 40-hour week. Tax is deducted from this amount. It is hard for people with a family to find enough money for rent, food, clothes, transport, electricity and phone.

The Anglican church wants companies to pay a Living Wage. Think about a family of 2 adults and 2 children, with one adult working 40 hours a week and the other adult working 20 hours a week. The Living Wage supporters worked out that this family would need a wage of nearly $20 an hour. At the moment, the Living Wage is set at $19.25, but next month that will increase to $19.80 an hour.

The Wellington City Council has been paying a Living Wage since 2013. Last year, 27 employers paid the Living Wage to all their employees. This year, the number has risen to 47 employers.

The group of people supporting a Living Wage point out that Chief Executive Officers (CEOs) of New Zealand’s biggest companies have had a pay increase of 10% recently. The CEO of the ANZ Bank was paid $4m in 2013 and the following year his salary increased by $250,000. Of course a CEO has a big responsibility but is such a big salary necessary?

In the past, perhaps 20 or 30 years ago, there was not such a big pay difference between different jobs. These days we worry about families living in poverty.

Vocabulary

• minimum (adj, n) – lowest legal rate (employers cannot pay less than this)
• deduct (v) – subtract (money)
• work out (v) – do a mathematics sum
• wage (n) – an hourly rate, usually paid every week
• salary (n) – a yearly rate, usually paid every month or two weeks
• poverty (n) – being poor

Note: ‘such a’ + noun e.g. such a difference; ‘so’ + adjective e.g. so big