The Associate Finance Minister says the minimum wage isn't designed to be a way of raising income, and the Government has to consider its effect on employers.
The minimum wage increases to$23.15 an hour from today, with the Family Tax Credit, Best Start tax credit and Job Seeker Support benefit also increasing.
Labour says the increase won't be enough for some struggling households.
But Minister David Seymour says there are very few minimum wage workers leading a household.
"Often they'll be students, often they'll be a partner who works part-time but has a full-time breadwinner elsewhere in the household."
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