Pay and Benefits

Sector pay movement

Figure 2 shows the pay movements for different sectors between June 2002 and June 2007 using the Labour Cost Index from Statistics New Zealand. Over the past five years, the change in salary and wage rates for the Public Service has been lower than that in the Health and Education sectors and similar to that in the private sector.

Figure 2. Labour Cost Index (LCI) - All Salary and Wage Rates, 2002 to 2007

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

Salary rates and performance payments

As at 30 June 2007, the median base salary for public servants was $48,343 ($45,900 in 2006). For males the median salary was $53,387, and for females $45,544, (refer to Table 6 below). The average base salary for public servants was $56,619 ($53,948 in 2006).

Table 6. Base salary of all staff, 2002-2007

 

2002

2003

2004

2005

2006

2007

Median salary

$40,192

$41,500

$42,310

$43,700

$45,900

$48,343

Average salary

$45,896

$47,652

$48,915

$50,884

$53,948

$56,619

Percentage change in average salary

4.6%

3.8%

2.7%

4.0%

6.0%

5.0%

Eighteen percent of public servants received lump sum performance payments during the year to 30 June 2007 (18% in 2006). Lump sum performance payments were made by 26 organisations and the average payment 6 was $2,255. Refer to Table 7 below, showing information on performance payments since the information was first collected in 2005.

Table 7. Performance payments, 2005-2007

Lump sum performance payments

2005

2006

2007

Number of staff

8,405

7,432

8,012

Percentage of staff

21%

18%

18%

Average value

$2,592

$2,521

$2,255

Pay gaps

The gender pay gap is defined as the difference between the average salary of women and the average salary of men, and is expressed as a percentage of the average salary of men. The gender pay gap for the Public Service was 16% as at 30 June 2007 (16% in 2006). Since 2002 the gender pay gap has been stable at between 16 and 17 %.

Gender pay gaps within occupation groups are lower than the overall gender pay gap (refer to Table 8 below). The grouping of women into lower paid occupations has been identified by the Pay and Employment Equity Taskforce as a significant contribution to the gender pay gap.

Table 8. Gender pay gaps by occupation

Occupation group

Number of Females

Number of Males

Pay Gap

Managers

1,797

2,115

12.8%

Professionals

10,629

7,366

11.4%

Technicians and Trades Workers

367

811

9.1%

Community and Personal Service Workers

2,549

3,279

13.1%

Clerical and Administrative Workers

10,692

4,269

11.2%

Ethnic pay gaps are defined as the difference between the average salary for an ethnic group and the average salary of those not in that ethnic group, and is expressed as a percentage of the average salary of those not in the ethnic group. Table 9 presents ethnic pay gaps in the Public Service and the wider labour force.

Table 9. Ethnic pay gaps, 2002-2007

 

2002

2003

2004

2005

2006

2007

NZ Labour Force comparison - 2007

12%

13%

14%

13%

12%

11%

10%

Pacific peoples

19%

21%

20%

21%

21%

20%

20%

Asian peoples

5%

7%

8%

10%

9%

10%

Not available

Superannuation

As at 30 June 2007, 51% of permanent public servants were members of an employer subsidised superannuation scheme, with 42% belonging to the State Sector Retirement Savings Scheme (SSRSS). Fifteen percent of fixed-term public servants were members of an employer subsidised superannuation scheme, with most belonging to the SSRSS.

The number of SSRSS members in the Public Service as at 30 June 2007 was 5% higher than the previous year. Eighty-eight percent of SSRSS members were contributing 3% or more of their salary to the scheme. The 2007 HRC survey does not include data on KiwiSaver as that scheme commenced after the survey date of 30 June 2007.

 

6 The average payment excludes lump sum performance payments made to chief executives.

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