Expenditure on base salaries is the single largest people expense. Other components of personnel costs include superannuation, performance payments, redundancy costs and ACC levies. Total salary cost presented in Figure 3.2 is calculated by multiplying the total number of FTE employees in the Public Service by the average annual FTE salary. These are indicative salary costs and do not represent exact annual salary expenditure. The total salary cost in the Public Service rose by 2.8% to $3.27 billion in 2015, up from $3.18 billion in 2014. The growth trend since 2000 reflects the increase in staff numbers and average salary.
Figure 3.2 Total salary cost of Public Service (FTE employees x average salary), June year 2000-2015