Costs of labour higher in June quarter

Labour costs rose 2.7 per cent in the June quarter compared to the same period last year, according to provisional data out from Statistics New Zealand today.

The salary and wage rates, including overtime, component of the Labour Costs Index rose 2.7 per cent, while non-wage labour costs increased by 2.8 per cent.

Non-wage labour costs were pushed up by a 2.9 per cent increase in annual leave and statutory holiday costs. Annual leave and statutory holiday costs increased 2.8 per cent for private sector employers and 3.2 per cent for the public sector.

These rises were partly offset by a 3.3 per cent fall in other non-wage labour costs such as medical insurance and vehicles made available for private use.

Workplace accident insurance costs rose 7.2 per cent compared to the previous June quarter.

Employer superannuation costs rose 5.2 per cent. In the public sector, superannuation costs rose 10.6 per cent partly due to the introduction of the State Sector Retirement Savings Scheme.

- NZPA