New Zealand has raised the minimum wage and raised taxes …

New Zealand raised the minimum wage and raised taxes for the richest, two measures that went into effect on Thursday and are part of Prime Minister Jacinda Ardern’s efforts to fight against inequalities and stimulate the economy after the impact of covid-19. After holding a meeting with his cabinet, Ardern pointed out that the measures “represent real and long-awaited improvements in the support we provide to our most vulnerable populations”.

With the changes presented by Ardern, new minimum wage drops from NZ $ 18.90 to NZ $ 20 per hour, a measure that is part of their main electoral promises and which will benefit 175 thousand people. Also from this Thursday raises top tax to 39% of income for people earning over NZ $ 180,000, when before the cap was 33 percent. The measure should affect 2% of taxpayers.

The increase in the minimum wage, which affects many key workers during the covid-19 pandemic, It has been praised by unions although criticized by companies who say they have not yet been able to recover from economic damage. left by the pandemic, which has led to various lockdowns, notably in the city of Auckland.

“These steps are taken precisely at a time when about a thousand businesses have recently closed., and especially when many people in the hotel industry tell us that they can no longer manage the increases because they have problems paying rents, ”the opposition leader said on Wednesday. Judith Collins, on the TVNZ network.

According to data from New Zealand’s Ministry of Social Development, companies in the country have hired more staff since the start of the year, although they are still there are more than 200 thousand people who receive unemployment benefits, nearly 60,000 more than in mid-March when the pandemic began.

New Zealand, which closed its borders to stem the pandemic and ordered one of the world’s toughest lockdowns in March when it had just 50 cases, accumulates 2,141 infections and 26 deaths due to covid-19 in a country of five million people.

Last Saturday The Prime Minister has ordered the country’s largest city, Auckland, to be re-contained due to the emergence of a new coronavirus case. The rest of the country is subject to restrictions, such as limiting people’s congregations to a maximum of 100 people, and the requirement to wear masks on public transport. Ardern believes the pandemic is progressing because citizens are not taking the necessary precautions, although its management against the coronavirus is internationally acclaimed.