The minimum wage has been increased by 25 cents an hour to $13 an hour.

"This Government's focus when reviewing the minimum wage over this term has centred on the need to protect jobs while ensuring a fair wage. Since being elected, we have raised the minimum wage by $1 - which equates to $40 a week," Labour Minister Kate Wilkinson says.

"The 25c increase in conjunction with last year's tax cuts ensures that workers on the minimum wage have maintained the buying power of their wages."

The training and new entrants' minimum wages will increase from $10.20 to $10.40.

Labour deputy leader Annette King says the increase is pathetic and insulting, and workers are losing ground.

Labour would increase it to $15 by 2014.

"People need a living wage. Last year John Key gave himself a tax-cut of more than $1000 dollars a week, but our poorest workers are being offered a derisory sum to cope with the sharply-rising cost of living," she says.

"Those on the minimum wage have little or no hope of coping."

The new minimum wage rate will come into effect on April 1, 2011.

(Vernon Small, Stuff, retrieved 07/02/2011 from www.stuff.co.nz)