Income equality advocates Closing the Gap have called for the introduction of a ‘living wage' to ensure workers across New Zealand can live on what they earn.

Closing the Gap spokesperson Peter Malcolm says the minimum wage model should be scrapped, and claims research figures behind a replacement living wage are based on 'fact not fiction”.

The minimum wage is currently $16.50, compared to the living wage of $20.20.

Peter says the difference represents what people need to achieve reasonable living standards, not what businesses think is the least they can get away with paying employees.

'We agree with the recent calls by Council of Trade Unions for New Zealand to share the country's productivity growth with those who are working hard yet earning less than what their expenses are,” he says.

'Income/wealth inequality is a serious problem in New Zealand, with many negative consequences for our society and country. So as well as lifting the pay of those at the bottom, we need to control the pay of those at the top.

'Research has shown there is little, if any, link between high CEO pay and CEO performance. In fact, there's more and more evidence the reverse is true, with better performing companies having the lowest paid CEOs.

'But let's stop comparing our country to others and simply up our game and start thinking sensibly, and with equity, affordability and living with dignity in mind.”