Non-wage expenses drive up New Zealand labor costs

New Zealand labor costs rose by 1.8 percent in the year to the end of June, with non-wage costs rising faster than pay packets, the government statistics agency announced Tuesday.

The non-wage component was up by 2 percent, reflecting higher costs for annual leave and statutory holidays, superannuation, workplace accident insurance, medical insurance and low-interest loans, according to Statistics New Zealand.

Salary and wage rates, including overtime, rose by 1.7 percent, said a statement on the agency's labor cost index.

Superannuation costs increased 3.1 percent, reflecting continued growth in employer-subsidized pension schemes, while workplace accident insurance costs per employee rose 5.8 percent.