STATE EMPLOYEES

Evening Star, Issue 23682, 16 September 1940, Page 4

STATE EMPLOYEES

CDST-OF-LIVING ALLOWANCE 5/- WEEKLY TO ALL EARNING UP TO £335 [Per United Press Association.] WELLINGTON, September 15. The decision of the Government to grant a cost-of-living allowance to the lower-paid State employees was announced to-night by the Minister of Finance (Mr 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 under awards and industrial agreements. No deduction will be made for superannuation, but the allowance will be subject to taxation in the usual way. Mr Nash said that following the recent Arbitration Court pronouncement the Government had considered tho representations made by various staff organisations representative of the State employees for a coet-of-liviug allowance. “ The Government has reached the conclusion,” the Minister said, “ that in equity some allowance should be granted to the lower-paid State employees. The allowance is being given to offset the rise in the 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,” Mr Nash said, “ 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 5s a week, or £l3 a year, to all State employees, 18 years of age and oyer, in receipt of salaries not exceeding £335 a year or its equivalent in weekly wages or hourly rates. “ Juniors under IS years of age, if living away from home, will receive an allowof £6 10s a year, and if living at homo £3 5s a year. In the case of officers whose salaries or wages amount to slightly more than £335 the allowance will abate by £1 for every £3 or part of £3 of salary in excess of £335. “ The cost of this allowance in tho aggregate,” Mr Nash said, “ will be slightly in excess of the cost of granting a straight-out 5 per cent, on the salaries and wages concerned. This decision will apply to all employees of the general public service.” Tho Minister added that investigations were proceeding to enable tho Government to determine the procedure necessary to adjust anomalies which might arise in connection with the allowances.