Labour costs rise 1.8 percent
Labour costs rise 1.8 percent
21 October 2014
Labour costs rose 1.8 percent in the year to the
June 2014 quarter, with the non-wage component rising 2.0
percent, Statistics New Zealand said today. The increase in
the non-wage component reflected higher costs for annual
leave and statutory holidays, superannuation, workplace
accident insurance, medical insurance, and low-interest
loans.
Annual leave and statutory holiday costs increased 1.6 percent. This increase is in line with the 1.7 percent increase in salary and wage rates (including overtime) for the year to the June 2014 quarter.
Superannuation costs increased 3.1 percent in the year to the June 2014 quarter, reflecting continued growth in employer-subsidised KiwiSaver membership. This increase was smaller than last year's, when the minimum employer contribution for KiwiSaver rose from 2 percent to 3 percent.
Workplace accident insurance costs per employee increased 5.8 percent in the year to the June 2014 quarter. This rise resulted from increases in Accident Compensation Corporation (ACC) levy rates, the Health and Safety in Employment levy, and pay rates (up 1.7 percent).
Other non-wage labour costs (medical insurance, motor vehicles available for private use, and employer-related low-interest loans) rose 0.7 percent overall in the year to the June 2014 quarter. The costs of providing medical insurance and employer-related low-interest loans increased, while the cost of providing motor vehicles for private use fell. The increase for medical insurance reflected higher premiums.
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Labour Cost Index (All Labour Costs): June
2014
quarter
ends