Pay Movement

Figures 1 and 2 below show the different long-term and short-term patterns in pay movement in different sectors. Figure 1 shows the Public Service falling behind the private sector and other parts of the State sector through the mid to late 1990s. Figure 2 shows that this trend has changed since 2002. Public Service pay increases since 2002 exceeded those in the private sector and were similar to those in the public health sector. Pay increases in the education sector continued to be higher than in other parts of the State sector.

Figure 1: Pay movement 1994 - 2004

""

Source: Statistics NZ - Labour Cost Index - All Salary and Wage rates

Figure 2: Pay movement 2002 - 2004

""

Source: Statistics NZ - Labour Cost Index - All Salary and Wage rates

In the past year, permanent public servants who remained in the same job received an average pay increase of 6.1% (4.8% in 2003) - compared with estimates of between 3.8% and 5.1% for the labour market as a whole.

The effect of these movements has been to reduce the gap in salary levels between the Public Service and the labour market as a whole. At the median Public Service job size, salaries across the labour market were paid around 4% (7% in 2003) more than Public Service salaries. The gap continues to be wider for larger jobs than for smaller jobs.

Last modified: