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SALARY CUTS

Application to Public Service FLAT AND GRADUATED Interesting figures were given by the Minister of Lands, Hon. E. A. Ransom, in the House last evening to show the effect of a general reduction of ten per cent, in the salaries of Public servants and the savings that would be made by the application of a graduated scale. Mr. Ransom said that there were 43,696 permanent officers in the Public Service, that their salaries amounted to £11,499,818, and that with a ten per cent, reduction the saving would be £1,149,981. The temporary employees numbered 11,621, the salaries paid to them totalled £2,417,16S, and on a basis of ten per cent, reduction the saving would be £241,716. With a total of 55,317 employees the saving would be £1,391,697. The savings that would be effected by a graduated scale were then given by Mr. Ransom as under: — Over £lOOO, 15 per cent, reduction, 53 officers, total salaries £74,222, saving £11,133. £751 to £lOOO, 12$ per cent, reduction, 308 officers, total salaries £265,765, saving £33,220. £5Ol to £750. 10 per cent., 1291 officers, total salaries £751,462, saving £75,146. £351 to £5OO, 7$ per cent., 4726 officers, total salaries £1,917,294, saving £143,797. £2Ol to £350, 5 per cent., 26,584 officers, total salaries £7,101,967, saving £355,098. £2OO and under, no reduction, 10,734 officers, total salaries £1,389,108, saving nil. _ On this basis 43,696 permanent officers, with total salaries amounting to £11.499,818, would contribute £618,394. With a five per cent, reduction in the salaries of 11,621 temporary employees (taking £4 a ,week as average), whose salaries amounted to £2,417,168. the saving would be £120,858. The grand total from 55,317 employees, permanent and temporary, salaries amounting to £13,916.986, would be £739,252. Mr. Ransom pointed out that a reduction on the basis of the above graduated scale would realise £652,445 less than the amount that would be saved by a flat rate reduction of ten per cent.

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Permanent link to this item

https://paperspast.natlib.govt.nz/newspapers/DOM19310313.2.73

Bibliographic details

Dominion, Volume 24, Issue 143, 13 March 1931, Page 10

Word Count
319

SALARY CUTS Dominion, Volume 24, Issue 143, 13 March 1931, Page 10

SALARY CUTS Dominion, Volume 24, Issue 143, 13 March 1931, Page 10