It’s usually quite easy to determine the salary you should command in New Zealand; jobs requiring skills and qualifications which are in demand often mean you can negotiate for a higher salary.
There’s a marked difference between salaries in the major cities of Auckland and Wellington and in the rest of the country, in 2013 Wellington had the highest average national income (over $81,000). Nevertheless, the higher salaries in these major cities mean higher living costs also, in addition to the tendency for jobs there to carry more responsibility (i.e. stress).
The term ‘negotiable’ is frequently used in job advertisements, which means that you will need to work hard to convince the employer that you deserve a high salary. However, if you have qualifications or skills that are in short supply, you may be able to negotiate an even higher salary. For example, the wool industry was thrown into turmoil when shearers began flocking to Australia in their hundreds in search of higher pay, and the Shearing Contractors’ Organisation was forced to raise pay rates by 20 per cent.
A national minimum wage in New Zealand is currently $14.25 per hour, and for Starting-Out workers and trainees the minimum wage is $11.40 (in 2014). A recent survey carried out by Statistics New Zealand revealed that from 2013 to 2014, 50% of employees earned $25 more per week, this has been the largest annual rise in salary since 2007.
The average hourly wage in 2014 in the private sector was $26.29 and $35.28 in the public sector. The lowest wages tend to be earned by hotel and restaurant staff as well as bar staff and waiters/waitresses. Not surprisingly, the highest wages are found in the financial and insurance sectors as well as IT posts. For example, the average annual salary for a Computing Sales Manager is $50,000 – $150,000+. As few wages in New Zealand are negotiated on a collective basis, there’s often a huge variation in pay in different industries and areas.
Executive and professional salaries are typically lower than in other developed countries such as Australia, France, Germany, Japan, the UK and the USA, although a lower cost of living, particularly housing, compensates.
Executive salaries are often subject to much greater annual rises (e.g. 10 to 12 per cent) than average wages, which are usually around just 2 per cent annually. New Zealand's employers don’t traditionally shower executives with fringe benefits on top of their basic salary package, but may offer certain benefits to lure an outstanding applicant. Nevertheless, company cars are widespread at executive level, as are health insurance benefits (around 55 per cent) and superannuation or pension schemes (around 60 per cent).
Productivity bonuses and profit sharing may also be offered. Relocation costs and contributions towards housing expenses are usually offered only to employees with particularly rare skills (but it’s worth asking).
There aren’t any standard working hours in New Zealand. Traditionally, the working week has been 40 hours, commencing at 8.30am and finishing at 5pm, Mondays to Fridays, with a half-hour break for lunch. However, since the Employment Contracts Act took effect, employers and employees have been free to set the length of their working week and their start and finish times.
The majority of employees still work around 38 or 40 hours over five days a week, although some companies (mainly larger organisations and manufacturing companies) have introduced different working patterns in agreement with their employees. Some large factories, for example, work four ten-hour shifts spread over seven days. Generally, workers in New Zealand expect to have Saturdays and Sundays off, although this is changing as more organisations (particularly service industries) operate at weekends.
Overtime is traditionally paid at a rate of ‘time and a half’, although in many industries it has effectively been abolished, as employers have agreed with employees (or have insisted) that they take time off in lieu of overtime.