The legislation introducing a new youth minimum wage has passed its first reading in Parliament.
Currently, workers aged 16 and 17 can be paid 80% of the minimum wage - equating to $10.80 an hour - for three months.
The Government is extending that to the first six months of a new job, and is bringing 18- and 19-year-olds who have been on a benefit into the scheme.
It says that will be an incentive for employers to take on younger workers.
Labour says the legislation will disadvantage older workers in the tight job market, as employers will choose the younger workers, whom they can pay less.
The bill was supported by National, ACT and United Future.