The announcement comes as the minimum wage gets a meagre $0.35 boost to $23.50 starting this Tuesday, 1 April.
The living wage is set by Living Wage Aotearoa NZ, a coalition of unions and other groups without any connection to the government.
Many government contracts use the living wage - though the current government has proposed removing that requirement.
The new living wage would ensure employees at one of the 342 accredited Living Wage Employers make at least $5.45 an hour more than the minimum wage, which is set by the government.
"The Living Wage has made a real difference to workers for over a decade now," said Living Wage Aotearoa NZ executive director Gina Lockyer in a statement.
"For many workers and their families, it's the difference between being able to make ends meet or falling behind. It's being able to afford school uniforms and medical expenses. It means not having to decide between doing a grocery shop or paying the power bill."
Lockyer expressed concern over the government's proposal to scrap its use of the living wage.
"If the changes go ahead, these workers will miss out on the new Living Wage rate, and any future increases," she said.
"The government has two choices - a Living Wage that improves community outcomes and service delivery, or hardship for the people who keep their agencies safe, healthy, and secure."
