Statistics New ZealandFriday 19 October 2012, 2:41PM
Media release from Statistics New Zealand
Labour costs rose 2.6 percent in the year to the June 2012
quarter, with the non-wage component rising 5.9 percent, Statistics
New Zealand said today. The increase in the non-wage labour costs
component of the labour cost index (LCI) reflected higher annual
leave and statutory holiday costs and higher superannuation
The salary and wage rates (including overtime) component, released
in August 2012, increased 2.0 percent in the year to the June 2012
Annual leave and statutory holiday costs increased 8.4 percent in
the year to the June 2012 quarter. In 2011 there were nine
statutory holidays; in 2012 there were 11. This change increased
employers' holiday costs, as did a 2.0 percent increase in pay
Employers' superannuation costs per employee rose 4.1 percent in
the year to the June 2012 quarter.
This increase reflects continued growth in employer-subsidised
KiwiSaver membership and higher pay rates, partly offset by falls
in membership in other employer-subsidised superannuation
Workplace accident insurance costs were down 6.7 percent in the
year to the June 2012 quarter. This fall resulted from decreases in
ACC levy rates. These decreases were partly offset by a 2.0 percent
increase in pay rates.
Other non-wage labour costs (medical insurance, motor vehicles for
private use, and low-interest loans) decreased 1.1 percent in the
year to the June 2012 quarter. The costs for both motor vehicles
for private use and low-interest loans were down, while the cost of
medical insurance was up (reflecting higher premiums).
A fall in fringe benefit tax (FBT) rates on 1 October 2010 (which
occurred at the same time as a fall in the personal income tax
rate) had a downward impact. This is because all four quarters in
the 2012 tax year were affected by the change in FBT rates,
compared with only two quarters in the 2011 tax year.