Performance pay is defined as a one-off payment to staff in recognition of outstanding work. In the year to 30 June 2019, 1.9% or 979 Public Service employees received a performance pay with the average value of $3,500 (see the first tab on the chart below). Senior staff are more likely to receive a performance pay and a larger amount.
Thirteen departments (out of 34) gave performance pay in 2019 (down from 20 out of 32 departments in 2018). Over half (58%) of performance pay receivers were given by three departments (MBIE, MFAT and DIA).
One of the Government Expectations on State Sector Employment Relations is that employers work towards removing at-risk pay and performance bonuses from pay policies and employment agreements over the next two years. This will be reflected in future reporting.
As at 30 June 2019, 91.4% of Public Service employees were members of at least one employer-subsidised superannuation scheme (up from 90.3% in 2018). The majority of staff (77.2%) belonged to KiwiSaver, with 14.5% in the State Sector Retirement Savings Scheme (SSRSS). Membership of KiwiSaver has increased steadily as new employees join the Public Service. SSRSS and the Government Superannuation Fund (GSF) schemes were closed to new members in 2008 and 1992 respectively and the number of employees in those schemes are decreasing gradually as members leave the Public Service. The chart on the second tab above shows recent trends of Public Service participation in superannuation schemes.
In the year to 30 June 2019, 185 employees in the Public Service were made redundant (down from 380 in 2018). The average redundancy payment was $65,900 (down from $79,000 in 2018). This decrease was mainly due to fewer redundancies in Inland Revenue (down from 164 in 2018 to 24 in 2019) as it continues its large transformation programme.
The total cost of redundancy decreased by 59% to $12.2 million (from $30.0 million in 2018). Twenty three departments reported redundancies, with 43% occurring in three departments: Ministry of Business, Innovation and Employment, Inland Revenue and Oranga Tamariki.