Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search


Pay rates for skills rising fast over unskilled

Pay rates for skills rising over twice as fast as for unskilled: Wage survey

The employers' National Wage & Salary Survey out today confirms pay rates are pushing up faster than last year, and for skilled people, pay is rising over twice as fast than for semi-skilled or unskilled people.

Though the average wage increase in the survey was 4.5 per cent for the year ended August, (3.8 per cent in 2006) wage increases for unskilled employees averaged only 2.4 per cent, said David Lowe, Employment Relations Manager for the Employers & Manufacturers Association (Northern).

"But pay rates for skilled administrators and management went up 6.6 per cent over the year," he said.

The Survey has been run for 14 years and is New Zealand's most comprehensive measure of remuneration trends.

This year 745 employers contributed data for 48,477 employees across 214 job types in 19 industry sectors. (Pay rates for 30 job categories are attached).

The survey covers all remuneration related income including and measures trends in other benefits such as superannuation schemes and holidays.

"Overall the biggest increases tended to be in office jobs with lower rates of increase in areas such as production supervisors, fitters, and skilled warehouse work," Mr Lowe said.

"Since unskilled people averaged wage increases of 1.7 per cent less than everyone else in 2006, its obvious that over time lower skilled people do fall behind.

"The good news is the incentives to people to up skill themselves are evident in terms of higher wage packets.

"The biggest movers in the pay stakes this year were: skilled shop salespeople (up an average 9.9 per cent); Managing directors with 50 to 199 staff (up 9.5 per cent); registered electricians (up 9.2 per cent); registered nurses (up 9.1 per cent); and diesel motor mechanics (up 8.4 per cent).

"Some key points from the survey are:

  • Employers under-estimate how much they need to pay to attract the right staff. Employers end up spending about one per cent a year more in pay than they estimate they will.
  • Pay increases in Not-for-profit organisations are up. Their average increase was 4.35 per cent this year.
  • Senior managers often have about 20 per cent of their remuneration package related to the performance of their businesses and delivered in the form of performance bonuses.
  • Over a third of employers specifically say they do not offer redundancy compensation. For those that do the 4 + 2 formula (four weeks pay for the first year of employment and two weeks pay for every year thereafter) was the most common.
  • While KiwiSaver is still new, employers are ditching their own superannuation scheme, (68 per cent in 2005 down to 50 per cent in 2007) with a further 12 per cent saying they will discontinue their own schemes.
  • Only 8.5 per cent of workers are getting five weeks holiday; 2.4 per cent get more than five weeks. 89.1 per cent of employees get four weeks holiday, demonstrating the increase in the statutory minimum holidays earlier this year has not produced an extra week's holiday for those already on four weeks.
  • The average amount of annual leave being accumulated has doubled since last year. Many staff seem unable yet to take the extra leave they are now entitled to.
  • Using annual leave to recognise long service has fallen dramatically. Last year, nearly half the work force was getting extra leave based on service, which has fallen to 22 per cent this year.

"Increases taken from just the latest year in isolation can be misleading; we recommend looking at the actual dollar value of a position and noting its average percentage trend increase over three years.

"For instance, salary for HR managers went down by 0.4 per cent this year, but in 2006 the increase registered 9.7 per cent whereas the average annual increase over the past three years has been 3.9 per cent."


© Scoop Media

Business Headlines | Sci-Tech Headlines


RNZ: Housing Boom Could Get Worse, Economist Warns

Economists are calling on the Reserve Bank to reinstate lending restrictions, warning the housing market is spiralling out of control. More>>


Westpac: Sets Out Plan To Go Cheque-Free

Westpac NZ has announced details of its plan to phase out cheques, after signalling in May that it would be supporting a move to other forms of payment. Cheques will cease to be available as a means of payment after 25 June 2021. Westpac NZ General ... More>>


NZTA: Major New Zealand Upgrade Programme Projects Go To Tender

Two major New Zealand Upgrade Programme projects are beginning tenders for construction. The New Zealand Upgrade Programme is a $6.8 billion investment to get our cities moving, to save lives and boost productivity in growth areas. The first Auckland ... More>>

Reserve Bank: RBNZ Seeks To Preserve Benefits Of Cash

The Reserve Bank – Te Pūtea Matua is taking on a new role of steward of the cash system “to preserve the benefits of cash for all who need them”, Assistant Governor Christian Hawkesby told the Royal Numismatics Society of New Zealand annual conference ... More>>


Economy: Double-Dip Recession Next Year, But Housing Rolls On

New Zealand's economy is expected to slip back into recession early next year as delayed job losses, falling consumer spending, and the absence of international tourists bites into growth. More>>


Microsoft New Zealand: Microsoft Expands “Highway To A Hundred Unicorns” Initiative To Support Startups In Asia Pacific

New Zealand, 14 October 2020 – Today Microsoft for Startups launches the Highway to a Hundred Unicorns initiative in Asia Pacific to strengthen the region’s startup ecosystem. This follows the initiative’s success in India, where 56 startups were ... More>>

Economy: NZ Small Business Recovery Continues In September

Xero, the global small business platform, today released its Small Business Insights (XSBI) for September revealing an uptick in small business jobs and year-on-year revenue growth in New Zealand. Nationwide, the average number of jobs in the small ... More>>


Courts: Businessman Eric Watson Sentenced To A Four-Month Jail Term

New Zealand businessman Eric Watson has been sentenced to a four-month jail term in the UK for contempt of court, TVNZ reports. More>>

OECD: Area Employment Rate Falls By 4.0 Percentage Points, To 64.6% In Second Quarter Of 2020

The OECD area employment rate – the share of the working-age population with jobs – fell by 4.0 percentage points, to 64.6%, in the second quarter of 2020, its lowest level since the fourth quarter of 2010. Across the OECD area, 560 million persons ... More>>

Spark: Turns On 5G In Auckland And Offers A Glimpse Into The Future Of Smart Cities

Spark turned on 5G in downtown Auckland today and has partnered with Auckland Transport (AT) to showcase some of the latest in IoT (Internet of Things) technology and demonstrate what the future could look like for Auckland’s CBD with the power of 5G. 5G is ... More>>

Stats NZ: Monthly Migration Remains Low

Since the border closed in late-March 2020, net migration has averaged about 300 a month, Stats NZ said today. In the five months from April to August 2020, overall net migration was provisionally estimated at 1,700. This was made up of a net gain ... More>>

University of Canterbury: Proglacial Lakes Are Accelerating Glacier Ice Loss

Lake Tasman, New Zealand | 2016 | Photo: Dr Jenna Sutherland Meltwater lakes that form at glacier margins cause ice to recede much further and faster compared to glaciers that terminate on land, according to a new study. But the effects of these glacial ... More>>