Performance pay is defined as a one-off payment to staff in recognition of outstanding work. In the year to 30 June 2020, 1.5% or 876 Public Service employees received a performance pay with the average value of $3,500 (see the first tab on the chart below). Senior staff are more likely to receive performance pay and a larger amount.
Sixteen departments (out of 36) gave performance pay in 2020 (up from 13 out of 34 departments in 2019). Over half (59%%) of performance pay receivers were given by four departments (Ministry of Foreign Affairs and Trade, Department of Internal Affairs, the Treasury and Department of Corrections).
One of the Government Expectations on State Sector Employment Relations is that employers work towards removing at-risk pay and performance bonuses from pay policies and employment agreements. This will be reflected in future reporting.
The chart on the second tab above shows recent trends of Public Service participation in superannuation schemes. As at 30 June 2020, 91.4% of Public Service employees were members of at least one employer-subsidised superannuation scheme (the same as last year). The majority of staff (79.6%) belonged to KiwiSaver, with 13.8% in the State Sector Retirement Savings Scheme (SSRSS). Membership of KiwiSaver has increased steadily as new employees join the Public Service. SSRSS and the Government Superannuation Fund (GSF) schemes were closed to new members in 2008 and 1992 respectively and the number of employees in those schemes are decreasing gradually as members leave the Public Service.
In the year to 30 June 2020, 269 employees in the Public Service were made redundant (up from 185 in 2019). The average redundancy payment was $71,700 (up from $65,900 in 2019). This increase was mainly due to more redundancies in Inland Revenue (up from 24 in 2019 to 108 in 2020) as it continues its large transformation programme.
The total cost of redundancy increased to $19.3 million (from $12.2 million in 2019). Twenty two departments reported redundancies, with 40% occurring in Inland Revenue.