Palmerston North City Council has voted to maintain its current minimum wage rate at $18.25 per hour for Council staff, in line with the cost of living for Palmerston North.

Council consulted with the public as part of its 10 Year Plan process, asking for their views on whether or not Council should consider paying permanent staff the national Living Wage which is currently set at $20.55 per hour. Council had no fixed view on the matter.

Whilst there was a large number of submissions in support of an increase in the minimum wage rate, Council has recently increased its minimum wage from $17.50 to $18.25 (the current minimum wage set by government is $16.50).

In its 10 Year Plan deliberations, Council took into consideration the recent increase in its minimum wage rate and voted to maintain it at that level. This includes an employee support package which offers professional development opportunities, an onsite gym and generous flexible sick leave provisions.

“The Living Wage is based on a national average (including Auckland). We know that Palmerston North is a much more affordable place to live and we believe Council, with its management team, are able to make the important decisions to ensure we continue to offer fair remuneration and good support for our employees,” says Mayor Grant Smith.

“Our current rates are based on an external report showing this rate to be in line with the cost of living for Palmerston North and by setting our minimum wage rate at $1.75 higher than the government’s minimum wage rate, we are already moving in the right direction.”

This decision will be confirmed once the 10 Year Plan is finalised by Council on 25 June.

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