ALLOWANCE GIVEN.

Auckland Star, Volume LXXI, Issue 220, 16 September 1940, Page 9

ALLOWANCE GIVEN.

STATE EMPLOYEES. COST OF LIVING BONUS. WELLINGTON, Sunday. The decision of the Government to grant a cost of living allowance to the lower paid State empViyees was announced to-night by the Minister of Finance, the Hon. W. Nash. The allowance will be retrospective to August 12, the date of the operation of the general order of the Arbitration Court increasing the wages of workers xinder awards and industrial agreements. No deduction will 'be made for superannuation, but the allowance will be eubject to taxation in the usual way. Mr. Nash said that following the recent Arbitration Court pronouncement the Government had considered representations made by various staff organisations representative of State employees for a cost of living allowance. "The has reached the conclusion that in equity some allowance should be granted to the lower paid State employees/' said Mr. Nash. "The allowance is being given to offset the rise in costs of living, and these costs press most heavily upon those in receipt of the lowest rates of salary or wages. "It has, therefore, been decided, in lieu of granting a straight-out 5 per cent increase in pay, to distribute a similar amount of money in the form of a flat allowance of five shillings a week, or £13 a year, to all State employees 18 years of age and over in receipt of salaries not exceeding £335 yearly or its equivalent in weekly wages or hourly rates. Juniors under 18, if living away from home, will receive an allowance °L £ ,- C , 10/ y ear] y> an d if living at home £3 5/ yearly. "In the case of officers whose salaries or wages amount to slightly more than i-iSo, the allowance will abate by £1 for every £3 or part of £3 ealaVv in excess of £335. "The cost of this allowance in the aggregate will be slightly in excess of ttie cost of granting a straight out five per cent on the salaries and wasrcs concerned. This decision will applr to all employees of the General Public SerMr. Nash said investigations were proceeding to enable the Government to determine the procedure necessary to adjust anomalies which might arise in connection with the allowances.—(Press