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Overall Wage and Payroll Statistics
According to the figures released today (March 28) by the Census and Statistics Department, the average wage rate for all the major sectors surveyed taken together, as measured by the wage index, fell by 0.8% in nominal terms in December 2002 over a year earlier. This was smaller than the decrease of 1.5% in September 2002.
About 49% of the companies surveyed reported some decrease in average wage rates in December 2002 over a year earlier, partly attributable to reduction in guaranteed bonuses and allowances. On the other hand, 38% of the companies surveyed recorded some increase in average wage rates over the same period. This was partly due to retrenchment of lower-paid clerical staff and operatives and hence a rise in the proportion of relatively higher-paid workers over a year earlier. The remaining 13% reported almost no change in average wage rates.
After discounting the increase in consumer prices as measured by the Consumer Price Index (A), the overall average wage rate for all the major sectors surveyed taken together fell by 1.8% in real terms in December 2002 over a year earlier. The increase in the Consumer Price Index (A) in December 2002 was attributable to a lower base of comparison caused by the waiver of public housing rentals in December 2001.
As for payroll, the index of payroll per person engaged for all the major sectors surveyed taken together likewise decreased, by 1.2% in nominal terms in the fourth quarter of 2002 over a year earlier. This was also smaller than the decrease of 1.5% in the third quarter of 2002.
Yet after netting out the effect of the decrease in consumer prices as measured by the Composite Consumer Price Index, average payroll per person engaged rose by 1.8% in real terms in the fourth quarter of 2002 over a year earlier.
The wage rate includes basic wages and other regular and guaranteed allowances and bonuses. Payroll includes elements covered by wage rate as well as other irregular payments such as discretionary bonuses and overtime allowances. The payroll statistics therefore tend to show relatively larger quarter-to-quarter changes, affected by the number of hours actually worked and the timing of payment of bonuses and back-pay.
It should also be noted that the wage indices cover employees up to the supervisory level (i.e. not including managerial and professional employees). Payroll indices, on the other hand, cover employees at all levels and proprietors actively engaged in the work of the establishments.
Sectoral Changes
For the manufacturing; wholesale, retail, import/export trades, restaurants and hotels; and personal services sectors, the nominal wage indices in December 2002 recorded year-on-year decreases, ranging from 0.1% to 1.4%. As to the transport services and the financing, insurance, real estate and business services sectors, the nominal wage indices increased by 0.5% and 0.3% respectively over the year.
For the real wage indices, year-on-year decreases of varying magnitudes were recorded across all the major industry sectors.
The year-on-year changes in the nominal and real wage indices for selected major sectors from December 2001 to December 2002 are shown in Table 1 (text version).
As for payroll per person engaged, year-on-year decreases in nominal terms, ranging from 2.2% to 2.9%, were recorded across almost all the major industry sectors in the fourth quarter of 2002. Yet payroll per person engaged in the transport, storage and communications sector rose by 2.0%, partly attributable to the receipt once again of double-pay by some employees in the sector in December 2002.
As for the real payroll indices, increases were seen across almost all the major industry sectors, except for the financing, insurance, real estate and business services sector where a nil change was recorded.
The year-on-year changes in the nominal and real indices of payroll per person engaged for selected major sectors from the fourth quarter of 2001 to the fourth quarter of 2002 are shown in Table 2 (text version). The quarterly changes in the seasonally adjusted nominal and real indices of payroll per person engaged between the fourth quarter of 2001 and the fourth quarter of 2002 are shown in Table 3 (text version).
Other information
Both wage indices and payroll indices are compiled quarterly based on the results of the Labour Earnings Survey conducted by the Census and Statistics Department.
It should be noted that wage statistics are conceptually different from the payroll statistics. Firstly, wage rate for an employee refers to the sum earned for his normal hours of work. It covers basic wages and other regular and guaranteed allowances and bonuses, but excludes earnings from overtime work and discretionary bonuses, which are however included in payroll per person engaged. Secondly, the payroll index of an industry is an indicator of the simple average payroll received per person engaged in the industry. Its movement is therefore affected by changes in wage rates, the number of hours of work and occupational composition in the industry. In contrast, the wage index of an industry is devised to reflect the pure changes in wage rate, with the number of hours of work and occupational composition between two successive statistical periods kept unchanged. In other words, the wage index reflects the change in the price of labour. Thirdly, wage index only covers employees up to the supervisory level, whereas payroll covers employees at all levels and proprietors actively engaged in the work of the establishment. Because of these conceptual and enumeration differences between payroll and wage statistics, the movements in payroll indices and in wage indices do not necessarily match closely with each other.
It should also be noted that different consumer prices are used for compiling the real indices of wage and payroll, taking into account their relevance to the respective occupation coverage. Specifically, the Composite Consumer Price Index, being an indicator of overall consumer prices, is taken as the price deflator for payroll of employees at all levels of the occupational hierarchy. The Consumer Price Index (A), being an indicator of consumer prices for the middle to lower income groups, is taken as the price deflator for wages in respect of workers on occupations up to the supervisory level.
Detailed breakdowns of the payroll and wage statistics are published in the "Quarterly Report of Wage and Payroll Statistics, December 2002". The publication will be available shortly after the press release. It costs HK$32 per copy. This publication and other publications of the Census and Statistics Department can be purchased in person from:
(i) Government Publications Centre, Ground Floor, Low Block, Queensway Government Offices, 66 Queensway, Hong Kong (Tel.: 2537 1910); or
(ii) Publications Unit of the Census and Statistics Department, 19th Floor, Wanchai Tower, 12 Harbour Road, Wan Chai, Hong Kong (Tel: 2582 3025).
Internet users may purchase the publications online at the "Statistical Bookstore, Hong Kong" (Address: http://www.statisticalbookstore.gov.hk) with payment made instantly. Softcopies of the publications purchased are available for immediate downloading while hardcopies purchased will be delivered by mail. Subscription to regular publications and advance ordering of upcoming releases are also available. The Statistical Bookstore is hosted on the ESD portal (Address: http://www.esd.gov.hk) together with other public services.
A mail order form for ordering or arranging subscription to hardcopies of publications is available in most publications of the Census and Statistics Department. It may be completed and sent back together with a cheque or bank draft covering all necessary cost and postage. The order form is also available for downloading from the website of the Department (Address: http://www.info.gov.hk/censtatd/eng/service_desk/forms_index.html).
For enquiries on payroll and wage statistics, please contact the Census and Statistics Department at 2582 5083.
End/Friday, March 28, 2003
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