
133 Molesworth Street
PO Box 5013
Wellington 6140
New Zealand
T+64 4 496 2000
14 April 2022
T Barnett
By email:
[FYI request #18991 email]
Ref:
H202204652
Tēnā koe T Barnett
Thank you for your email received on 28 March 2022 to the Ministry of Health (the Ministry)
about mental health workers’ pay with regard to the Support Workers (Pay Equity) Settlement
Act 2017 (the Act). I appreciate you taking the time to write.
I acknowledge your concerns about the delay in Mental Health and Addiction (MH&A) support
workers being paid in relation to clause 3 of Schedule 2 of the Act. I assure you that MH&A
support workers are being, and wil continue to be, paid according to the Act.
Statistics New Zealand published LCI data in the first week of August 2021. The Ministry then
prepared advice to government to approve the LCI funding increase. Funding was approved to
pay support workers LCI-adjusted wages on 20 December 2021. The Ministry and district health
boards (DHBs) have been working on implementing this funding for all support workers covered
under the Act.
The Ministry sent a letter to all MH&A providers on 11 March 2022. The letter acknowledged
that the published LCI figure for the period ending 30 June 2021 showed that the compound
average growth rate for the period 1 July 2017 to 30 June 2021 was 2.07 percent. Funding was
approved to enable support worker wage rate adjustments to take place from 1 July 2021. In the
letter, the Ministry included revised support worker wage rates, which were calculated using the
equations set out in clause 3 of Schedule 2 of the Act. The wage rates are listed below:
Pay band
1 July 2021 Year 5
Revised 1 July 2021
wage rates prior to
Year 5 wage rates
LCI adjustment
after LCI adjustment
L0
$21.50
$21.84
L2
$23.00
$23.36
L3
$25.00
$25.39
L4a
$26.00
$26.41
L4b
$27.00
$27.43
In the same letter to providers, the Ministry advised that payments should be made by DHBs to
providers by the end of March 2022, subject to COVID-19 related delays for DHBs. The Ministry
also advised that, once providers have received this funding, they are expected to pay their
support workers the LCI wage adjustment cost, backdated to 1 July 2021, as soon as possible.
Unfortunately, COVID-19 delays have impacted on some DHBs’ ability to meet the end of March
deadline. However, there has recently been more progress, and the Ministry is now expecting
payments to be made to all MH&A providers by the week beginning 4 April 2022.

The LCI wage adjustments, backdated to 1 July 2021, will be made to MH&A support workers
as soon as their employer is able to do so. Support workers will then be paid the new rates on
an ongoing basis.
Thank you again for taking the time to write. I hope this information is useful to you.
Nāku noa, nā
Clare Perry
Deputy Director-General
Health System Improvement and Innovation
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