Employers will be able to pay 16-to-19-year-olds in new jobs $11 an hour after a controversial bill was passed into law by one vote.
Unions immediately decried the adoption of a youth wage, which is nearly $3 below the minimum wage, but the National-led Government argued it would increase opportunities for young people.
National, Act and United Future backed the move to allow a "starting-out wage" to be set at no less than 80 per cent of the minimum wage for young people - $11 at current rates. Employers will be able to apply it from May 1.