Non-wage costs 24 p.c. of bill

Press, 9 January 1986, Page 12

Non-wage costs 24 p.c. of bill

PA Wellington Non-wage labour costs, such as holiday pay and fringe benefits, account for 24 per cent of New Zealand’s labour bill, an employment study shows. The percentage is almost the same as in Britain and higher than in Japan (17.7 per cent), but lower than in West Germany (41 per cent) and Italy (52 per cent). Non-wage labour costs include: • Remuneration for time not worked, such as holiday pay and sick leave. • Bonuses or payments in kind, including a car or other fringe benefits. • Social security costs, such as accident compensation levies or contributions to superannuation funds. • Costs of vocational training and welfare ser-

vices, such as a subsidised cafeteria. • Costs of recruitment and redundancy. The study, published in the “Labour and Employment Gazette,” showed that pay for time not worked accounted for 13 per cent of total labour costs. Payments in kind provided for 3 per cent and Social Security payments 5 per cent. The gazette said nonwage labour costs were of concern both in New Zealand and overseas. It was felt the size of non-wage costs might inhibit the growth of employment. However, most of the costs in New Zealand were recurrent and might not create barriers to employment adjustment, such as the more widespread use of part-time work.