Annual labour costs up 1.3 pc

Salary and wage rates rose 1.6pc in the year to the June quarter, says Stats NZ. Photo / Hawkes Bay Today

Labour costs rose 1.3 per cent in the year to the June quarter, Statistics New Zealand (SNZ) says.

The salary and wage rates (including overtime) component of the labour cost index (LCI) rose 1.6 per cent. Non-wage labour costs fell 0.5 per cent, reflecting lower ACC levy rates, lower fringe benefit tax rates, and one fewer paid statutory holiday.

The one fewer holiday meant annual leave and statutory holiday costs fell 1.1 per cent, SNZ said.

Workplace accident insurance costs fell 5 per cent in the year, reflecting the lower ACC levy rates partly offset by increases in pay rates.

Other non-wage labour costs -- medical insurance, motor vehicles available for private use, and employer-related low interest loans -- fell overall by 1.5 per cent.

The cost of providing motor vehicles for private use was down, while the costs of providing medical insurance rose, due to higher premiums, with the cost of employer-related low interest loans also higher.

Superannuation costs rose 7.3 per cent in the year, as growth in employer-subsidised KiwiSaver membership continued.

The rise in superannuation costs for the latest year was smaller than the increase last year, when the minimum employer contribution for KiwiSaver rose from 1 per cent (less tax credits) to 2 per cent.

- NZPA