Labour costs show annual rise of 2 percent
Labour costs show annual rise of 2 percent – Media release
18 October 2013
Labour costs rose 2.0 percent in the year to the June 2013 quarter, with the non-wage component rising 3.2 percent, Statistics New Zealand said today. The increase in the non-wage component reflected higher costs for: annual leave and statutory holidays, superannuation, low-interest loans, and medical insurance.
The salary and wage rates (including overtime) component, released in August 2013, increased 1.7 percent in the year to the June 2013 quarter.
Annual leave and statutory holiday costs increased 1.6 percent in the year to the June 2013 quarter. The number of statutory holidays was unchanged in the latest calendar year, with all 11 days falling on weekdays. The 1.7 percent increase in pay rates for the year also increased employers' holiday costs.
Employers' superannuation costs per employee rose 23.2 percent in the year to the June 2013 quarter. This increase reflects the KiwiSaver minimum employer contribution increasing from 2 percent to 3 percent on 1 April 2013. Other influences were continued growth in KiwiSaver membership and higher pay rates. However, these were partly offset by falls in membership in other employer-subsidised superannuation schemes.
Workplace accident insurance costs were down 13.3 percent in the year to the June 2013 quarter. "This fall resulted from a decrease in ACC levy rates, which were partly countered by a 1.7 percent increase in pay rates," prices manager Chris Pike said.
Other non-wage labour costs (medical insurance, motor vehicles for private use, and low-interest loans) decreased 0.8 percent in the year to the June 2013 quarter. The costs for both medical insurance and low-interest loans and were up, while costs for motor vehicles for private use were down.