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According to the figures released today (October 27) by the Census and Statistics Department (C&SD), the average monthly salaries for middle-level managerial and professional employees for all the selected industry sections surveyed, as measured by the Nominal Salary Index (A), increased by 5.9% in June 2011 compared with a year earlier.
After discounting the increase in consumer prices as measured by the Consumer Price Index (C), the Real Salary Index (A) increased by 0.5% in June 2011 compared with a year earlier.
Analysed by industry section and on a year-on-year comparison in nominal terms, the average monthly salaries for middle-level managerial and professional employees increased in all the individual industry sections in June 2011, ranging from 3.1% to 7.4%.
After discounting the increase in consumer prices, the Real Salary Index (A) increased in building and construction and related trades; financing and insurance; and import/export, wholesale and retail trades, by 1.9%, 0.9% and 0.7% respectively. As for manufacturing, electricity and gas supply; and transportation, storage, communications and travel agencies, decreases of 2.2% and 1.9% were recorded.
The Salary Index (A) measures changes in salary rates for all middle-level managerial and professional employees of the companies covered by the survey. Another index, the Salary Index (B), which excludes newly recruited and promoted employees and covers only those middle-level managerial and professional employees remaining in the same occupation and in the same company in two consecutive years, is also compiled. Its main purpose is to measure salary changes due to general increment, meritorious performance and gain in seniority.
Comparing June 2011 with June 2010, the overall Salary Index (B) increased by 7.5% in nominal terms or 2.1% in real terms. The different movement between the Salary Index (A) and the Salary Index (B) was mainly attributable to the lower pay usually received by new recruits (included only in Salary Index (A) but not in Salary Index (B)) as compared with existing employees. Hence, in general, increases in Salary Index (B) are greater than the corresponding increases in Salary Index (A).
Statistics on the year-on-year percentage changes in the Nominal Salary Index (A), Real Salary Index (A), Nominal Salary Index (B) and Real Salary Index (B) for June 2011 in respect of the selected industry sections covered are shown in the tables attached.
The survey findings also showed that 75% of the employees were entitled to profit-sharing bonuses and 28% were entitled to housing benefits of some kind in 2011, higher than the corresponding figures of 74% and 21% in 2010. The proportion of employees entitled to guaranteed year-end extra pay was 45%, which was lower than the corresponding figure of 50% in 2010.
Commentary
A Government spokesman said that reflecting continued strong demand for higher-skilled workers in the first half of 2011, the nominal salaries of middle-level managerial and professional employees rose visibly further by 5.9% in June over a year earlier. The increase was even more notable at 7.5%, after excluding new recruits with generally lower pay. On an inflation-adjusted basis, the corresponding pay hikes were 0.5% and 2.1% in real terms.
The spokesman further pointed out that analysed by sector, nominal pay rises were observed across all major industrial sections, in terms of both Salary Index A (including all these managerial and professional employees) and Salary Index B (excluding new recruits).
Other information
The salary indices are compiled annually based on the results of the Survey of Salaries and Employee Benefits - Managerial and Professional Employee (Excluding Top Management). This statistical survey has been conducted by the C&SD since 1984 to measure changes in salary rates for middle-level managerial and professional employees. A sample of about 260 companies was selected for the survey in 2011.
For the purpose of the survey, salary rate is defined to include basic salaries, cost-of-living allowance, guaranteed year-end extra pay, commission and tips, as well as other regular and guaranteed bonuses and allowances.
Details of the salary movement, average salary rate for major occupations, and statistics on employees' entitlement to various fringe benefits, together with a description of the survey methodology, are published in the 2011 Report of Salaries and Employee Benefits Statistics - Managerial and Professional Employees (Excluding Top Management). The publication is available for downloading free of charge from the website of the C&SD (www.censtatd.gov.hk/products_and_services/products/publications/index.jsp).
Enquiries concerning the Salary Indices can be directed to the Wages and Labour Costs Statistics Section (2) of the C&SD at 2887 5230.
Ends/Thursday, October 27, 2011
Issued at HKT 16:31
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