The Maori arm of the Council of Trade Unions says the minimum wage increase of 25 cents is pitiful.
The rise from 1 April will take the minimum to $13.75.
The training and new entrant's minimum wage will increase by 20 cents to $11 an hour.
Council of Trade Unions vice president Maori Syd Keepa says a recently well publicised study showed that $18.40 was the living wage.
But the Government says that in setting the new rate, it tried to balance the protection of low-paid workers against ensuring jobs are not lost.