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Friday, October 21

Non-wage labour costs rise 4.9 percent

While total labour costs rose 2.4 percent in the year to the June 2011 quarter, non-wage labour costs rose 4.9 percent, Statistics New Zealand said today. 

The increase in the non-wage labour costs component of the labour cost index (LCI) reflected higher workplace accident insurance and superannuation costs. 

The salary and wage rates (including overtime) component, released in August, increased 1.9 percent.

Workplace accident insurance costs were up 27.5 percent in the year to the June 2011 quarter. This rise resulted from increases in ACC levy rates and a 1.9 percent increase in pay rates.

Employers' superannuation costs rose 11.3 percent in the year to the June 2011 quarter. The increase reflects continued growth in employer-subsidised KiwiSaver membership (partly as a result of fuller reporting of KiwiSaver by LCI respondents). Increases in employer contribution rates for some definedbenefit
superannuation schemes also contributed.

Annual leave and statutory holiday costs increased 2.1 percent in the year to the June 2011 quarter. The latest increase is broadly in line with the 1.9 percent rise in salary and wage rates (including overtime).

Other non-wage labour costs (medical insurance, motor vehicles for private use, and low-interest loans) increased 0.9 percent in the year to the June 2011 quarter. 

The cost of medical insurance was up (reflecting higher premiums), while the costs for both motor vehicles for private use and low-interest loans were down. A fall in fringe benefit tax rates on 1 October 2010 had a downward influence.