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ate of $18.40. Sitting at 73.7percent of median household income, it is closer to the poverty threshold of 60
percent of median than the median itself. A living wage would be expected to provide a household
income considerably above the poverty threshold and at the same time well below the New
Zealand household median income. It also sits at 62.4 percent of mean household income.
As noted in the previous Report, the use of national average data to set the living wage will
underestimate costs in expensive housing regions like Auckland. Regional differences like this are difficult to resolve through a wage mechanism.
They highlight the issue though, that the calculation of a living wage is strongly affected by existing
tax rates and income support entitlements such as Working for Families tax credits, Childcare
support and in this example, the Accommodation Supplement. If any of these changes, the
necessary hourly rate would change as well – either up or down.
Action Station's TPPA fact website.