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Salaries and wages

Salaries and wages expenditure is recognised as an expense as employees provide services.

Superannuation schemes

Employer obligations for contributions to the Inland Revenue Superannuation Scheme, State Sector Retirement Savings Scheme, KiwiSaver and the Government Superannuation Fund are accounted for as defined contribution schemes. These obligations are expensed in the period they are paid.

Personnel costs by type for 2023–24 and 2024–25.
Personnel cost Actual 2024 ($000) Actual 2025 ($000) Unaudited Budget 2025 ($000)
Salaries and wages $409,131 $434,268 $412,501
Employer contributions to defined contribution schemes $12,102 $12,975 $12,452
Retiring, long-service, annual and sick leave $4,656 $4,993 $3,251
Training and development $2,868 $2,042 $1,600
ACC levies $803 $721 $676
Other personnel expenses $4,537 $6,763 $6,127
Total personnel $434,097 $461,762
$436,607

Explanation of major variances against budget

Personnel costs were $25.155 million higher than budget. The variance is primarily due to an increase in salaries and wages as a result of new initiatives for Vote Revenue in Budget 2024.

Last updated: 19 Nov 2025
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