Non-profit institutions spend more on paying employees – Stats NZ Media and Information Release: Non-profit institutions satellite account: 2018

Source: MIL-OSI Submissions

Non-profit institutions spend more on paying employees  Media release

27 March 2020

Salaries and wages (known as compensation of employees) paid by non-profit institutions (NPIs) are increasing faster than the value of the volunteer labour they receive, Stats NZ said today.

“NPIs paid 38 percent more to their employees in 2018 than they did in 2013. Meanwhile, the value of volunteering increased by only 14 percent over those five years,” national accounts senior manager Ruvani Ratnayake said.

Volunteer labour is important to the NPI sector. The Non-profit institutions satellite account: 2018 released today estimated it was worth $3,957 million in 2018. New Zealand’s GDP does not include volunteer labour. However, if it did, the NPI contribution to GDP would have been 4.2 percent ($12,060 million), down from 4.5 percent ($9,691 million) in 2013.

The NPIs’ overall contribution to New Zealand’s gross domestic product (GDP) decreased from 2.9 percent in 2013 to 2.8 percent in 2018.

Volunteer hours were an estimated 159 million, only about two million more hours than in 2013. In 2018 there were just over one million volunteers, meaning each volunteer worked on average three hours per week for an NPI.

The total number of employees has increased 10 percent over the last five years to 150,630. Their salaries and wages made up 81.3 percent of NPIs’ contribution to GDP in 2018, compared with 76.9 percent in 2013. The proportion of NPIs’ total expenditure also increased, from 39.8 percent in 2013 to 40.7 percent in 2018.

The percentage increase in salaries and wages by the non-profit sector was consistent with the increase across the rest of the New Zealand economy. The year-on-year average increase for total salaries and wages in the NPI sector was 7.5 percent. This compares to the total New Zealand economy, which increased an average 5.8 percent per year over the same five-year period.

See our infographic for an overview of The contribution of non-profit institutions in New Zealand.