Pay packet has more clout

Press, 5 July 1986, Page 8

Pay packet has more clout

Wellington reporter

The after-tax buying power of the average fulltime worker’s pay packet rose 3.7 per cent in the first quarter of this year. The Government Statistician, Mr Stephen Kuzmicich, said the increase resulted from a 7.6 per cent rise in gross incomes off-set by a 2.3 per cent rise in prices and a 3.9 per cent increase in taxa-

ion over the period. He said the gain was not spread evenly over the five income groups covered by the survey. The break-down shows: • That the highest 20 per cent of wage and salary earners — those on $27,800 a year and over — had an increase in their real, tax-paid income of 3.1 per cent. • That the second-

highest — those earning between $21,500 and $27,800 — got 4.6 per cent • That the middle 20 per cent — between $17,300 and $21,500 — got 4.2 per cent

• That the second-low-est 20 per cent — $13,300 to $17,500 — got 3.2 per cent.

• That the bottom 20 per cent — on Incomes of

less than $13,300 a year — got 3.3 per cent. Mr Kuzmicfch said the 3.7 per cent average increase reflected only half the 1985-1986 wage round. Based on this, the research economist for the Employers’ Federation, Mr Bill Poole, estimates that, by the June quarter, wages will be 4.5 per cent ahead of inflation.