The minimum wage will increase by $1.20 to $18.90 on April 1, 2020, the Government confirmed on Wednesday.
Training wages will also get a boost, rising to $15.12 per hour.
To give some insight on the impact might minimum wage increases have on smaller businesses Reg Hennessey, bar owner in Rotorua talks to Magic Talk Drive.
Asked for his reaction to the wage increase Reg confirms that it will result in rising prices across the services industry.
A lot in the industry have kept absorbing a lot of these increases.
Reg agrees with host Ryan Bridge that ultimately the costs will be passed on to customers or to staff in figuring out creative ways to meet ends with the increased costs.
“The first thing we will have to look at is all our pricing right across the board, and secondly most definitely we will look at staffing hours.”
Reg tells Ryan that tourists have already begun questioning the high costs of the service industry and increased costs will only add to that perception.
You can watch the interview above.