New Zealand · data to Sep qtr 2026
Is pay keeping up?
Bad.
Prices are rising faster than pay (-1.6% a year), so most workers are going backwards.
For context: -1.6% is lower than 86% of all 132 figures since 1993.
Pay growth minus inflation
Above zero means pay is rising faster than prices
The strip under the chart shows the verdict each period would get by today's rules:Good OK Bad
See the latest numbers
| Period | Value | Verdict |
|---|---|---|
| Sep qtr 2026 | -1.6% | Bad |
| Jun qtr 2026 | -2.1% | Bad |
| Mar qtr 2026 | -1.1% | Bad |
| Dec qtr 2025 | -1.1% | Bad |
| Sep qtr 2025 | -0.9% | Bad |
| Jun qtr 2025 | -0.3% | Bad |
| Mar qtr 2025 | 0.4% | OK |
| Dec qtr 2024 | 1.0% | Good |
| Sep qtr 2024 | 1.5% | Good |
| Jun qtr 2024 | 0.9% | OK |
| Mar qtr 2024 | 0.1% | OK |
| Dec qtr 2023 | -0.3% | Bad |
Source: Stats NZ, Labour Cost Index (all salary and wage rates) annual % change minus CPI annual % change (licensed CC BY 4.0) · Series LCIQ.SD53Z9 minus CPIQ.SE9A · Latest Sep qtr 2026
How we judged this
What we test: The latest figure (pay growth minus inflation). Right now that's -1.6%.
- Good if 1.0% or more
- OK if from 0.0% to under 1.0%
- Bad if anything the rules above don’t coverapplies now
Rules are checked from the top. The first one that fits decides the verdict.
About this data
- Measure
- Pay growth minus inflation
- Latest
- -1.6% (Sep qtr 2026)
- Published
- Quarterly, by Stats NZ
- Verdict counts for
- Equal weight with the others in the overall verdict
The Labour Cost Index tracks pay rates for the same jobs over time, like Australia's Wage Price Index, so changes in who's employed don't distort it.
Because it follows the same job, it leaves out promotions and moving to better-paid work, so it rises more slowly than people's actual pay packets.