Labour will restore pay equity legislation in its first 100 days and give an immediate pay rise to care and support workers.
- Pay equity legislation restored in Labour's first 100 days
- $4 an hour immediate pay rise for care and support workers, from 1 January 2027
- Covers an estimated 65,000 care and support workers
- Worth around $8,320 a year, or $160 a week before tax, for an average full-time worker
- Fully funded within Labour's Fiscal Plan
Care and support workers do some of the most important work in our communities, and overwhelmingly they are women. This immediate pay rise is real money for people who are paying the mortgage, the rent, the power bill and the grocery shop.
An estimated 11,000 New Zealand children are currently in poverty because of National's cancelled pay equity claims. Labour says work should not be undervalued simply because it is work traditionally done by women.
How it will work
Labour will reinstate pay equity legislation in its first 100 days in office. The reinstated legislation will accommodate the previous work already underway, so women aren't starting their claims from scratch.
From 1 January 2027, care and support workers will receive an immediate pay rise of $4 an hour, worth around $8,320 a year, or $160 a week before tax, for an average full-time worker.
Future pay equity settlements are different. Pay equity is determined through negotiation, and announcing in advance how much has been set aside for individual claims would undermine that process. Future settlements will be funded responsibly through future Budgets as agreements are reached and their costs become clear.
Part of Labour's Fiscal Plan
The cost of the immediate pay rise for care and support workers is fully funded within Labour's Fiscal Plan, alongside every other election commitment Labour has made.
When will pay equity legislation be restored?
Labour will restore pay equity legislation in its first 100 days in office. The reinstated legislation will accommodate the previous work already underway, so women aren't starting their claims from scratch.
How much will care and support workers' pay increase by?
From 1 January 2027, care and support workers will receive an immediate pay rise of $4 an hour. For the average full-time worker, this means being $8,320 a year better off, or $160 a week before tax.
Who is eligible for the immediate pay rise?
The immediate $4 an hour pay rise applies to care and support workers, the large majority of whom are women.
Will other pay equity claims also be settled immediately?
No. Pay equity is determined through negotiation, and Labour says announcing in advance how much has been set aside for individual claims would undermine that process. Future pay equity settlements will be funded responsibly through future Budgets as agreements are reached and their costs become clear.
How is this policy funded?
The cost of the immediate pay rise for care and support workers is fully funded within Labour's Fiscal Plan.
Why is Labour doing this?
Care and support workers do some of the most important work in communities, and are overwhelmingly women. Labour says National's cancelled pay equity claims have contributed to hardship for women and families, and that work should not be undervalued simply because it is traditionally done by women.
While National takes money out of women's pockets, Labour will put more of it back.
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