15 Sep 2011

Pay bill for public service heads down by 2%

7:36 pm on 15 September 2011

The overall pay bill for public service chief executives has shrunk by 2% in the past year.

State Services Commissioner Iain Rennie says the lower expenditure reflects the environment of fiscal restraint and fewer chief executives, because of recent mergers in the public sector.

Mr Rennie says restructuring has also contributed to the number of employees receiving more than $100,000 a year, as the figures include redundancy payments.

That figure has increased 10% this financial year, compared with 4%t the year before.

Mr Rennie says in public entities where he does not set remuneration, such as councils and boards, he expects restraint to be exercised.

He says increases should be given only where chief executives have performed strongly or in exceptional circumstances.