National Party finance spokesperson Michael Woodhouse says the government should not be raising the minimum wage to $20 an hour, especially not now.
Woodhouse told Morning Report the wage increase comes at a time when other costs are being imposed on businesses as well.
"It's not just minimum wage, its total cost of doing business including doubling sick leave, an extra public holiday, and the possibility of fair pay agreements going ahead will all act as a handbrake on businesses ability and willingness to employ more staff."
He said the economy may be looking better than expected, but that does not mean it is in a good shape.
"You described the HYEFU [Half Year Economic Fiscal Update] as more rosy I would say it's less dire."
