The government has confirmed it will raise the minimum wage by 75 cents to $16.50 an hour from April 1.

Workplace Relations and Safety Minister Iain Lees-Galloway announced the increase on Friday. "The increase to $16.50 will benefit about 164,000 workers and their families, and will increase wages throughout the economy by $129 million per year," he said.

The rise was one of the 100-day priorities for Jacinda Ardern's government and it was still committed to a $20 minimum wage by 2021, Mr Lees-Galloway said. "It is important that we achieve this goal in a fiscally responsible way, which is why we are signalling to employers in advance of our plans to incrementally raise the minimum wage and spread the increases as evenly as possible each year."