wage inflation

After calling for employers to exercise moderation in giving wage and salary increases, the Reserve Bank's wage bill has grown by 18% in the last year. The Herald points out that the rise

takes into account a rise in staff numbers to 223 full-time equivalents from 218 in 2004/5, it still represents a 15.4 per cent average rise in remuneration per employee to $96,860 from $83,944.

Which, compared to the NZ Income Survey is well above the 4% pay rise given to the average worker this year. In real terms, the average wage is only just keeping in line with inflation, the CPI for the year to June 06 was 4%.

That the RBNZ isn't keeping inflating between 1-3% - missing it's targets - clearly doesn't have any relation to how the reward their staff. It demonstrates that workers at the top end of the wage spectrum are treated spectacularly differently from those at the bottom. As the RBNZ forks out 15% extra for their staff without blinking, those wanting just over half that are punished for daring to suggest it.

Interesting to note also, from the Income Survey that while females still lag behind their men on average incomes ($473 for women vs $754 for men av p/w), they are closing the gap faster than they have for many years (up 7.1% for women vs 2.1% for men). Let's hope it's even closer next year.