20 July 2016 · Absolute IT Reports

Absolute IT has released its latest Remuneration Report. The Report captures over 39,000 real-time contract and permanent employees’ remuneration as entered into www.itsalaries.co.nz.

“Once again there is a slight dip in IT salary packages in New Zealand after an upward bounce was recorded in January this year. Over the last two years the national median IT salary fluctuated between $82,500 and $80,000 every six months” says Grant Burley, Director Absolute IT.

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Fluctuating Salary Trend

Burley says that over the last two years the median base salary has been fluctuating and that they wanted to explore the underlying drivers for this trend.

“We decided to take a different approach and have a look at other factors that could be at play. Evidence from our Auckland office pointed to new migrants entering the IT job sector at a much lower rate than the going market rate.”

He says that when they reviewed the overseas job applications that Absolute IT processed over the past two years an interesting trend started to emerge.

“An inverse trend became apparent. IT median salaries would rise when overseas applications are falling and IT salaries would fall again when overseas applications are on the rise. This explains why Auckland has experienced the biggest drop in IT median salaries (down 2.5%) as it is also the area with the highest rate of migrant arrivals.”


migrant vs applications graph

The short supply of IT talent in New Zealand has led to an IT job force that has a very high ratio of overseas talent.

Last week, Ian McCrae, CE of Orion Health said in an interview that while there are a lot of IT jobs available in New Zealand, half of his workforce is from overseas and that he believes this is the case for a lot of other companies in New Zealand.

Regional Salary Trends

Wellington’s median base salary stayed flat, but overall it is still the region with the best IT packages in New Zealand. It offers IT professionals  a  median salary of $87,000 and a $90/hr median contracting rate.

regional pay levels and benefits

Tech professionals in Christchurch have the biggest smiles as Christchurch had the highest jump in salary packages – both permanent and contractor packages were up 6.6%.

“Canterbury’s tech sector is expanding. In the Digital Nation report that NZ Tech released last month, Christchurch emerged as the second largest high-tech manufacturing centre in New Zealand. Canterbury’s tech sector contributes $2.4 worth of GDP and 14,837 jobs to the local economy. It has a strong, connected tech community and we expect these figures to keep on growing.”

Hamilton had a 2.5% rise in median salary package, but contractors were hit the hardest here. The median contracting rate has dropped by 17% to$60/hr (a $12/hr drop). This rate drop is reflected in a decrease in contract vacancies in Hamilton.