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According to the figures released today (November 8) by the Census and Statistics Department, the average monthly salaries for middle-level managerial and professional employees in all the major sectors surveyed taken together, as measured by the Nominal Salary Index (A), rose by 0.4% in June 2005 over a year earlier.
After discounting the increase in consumer prices as measured by the Consumer Price Index (C), the Real Salary Index (A) fell by 0.7% in June 2005 over a year earlier.
Analysed by economic sector and on a year-on-year comparison in nominal terms, the average monthly salaries for middle-level managerial and professional employees increased in the manufacturing, electricity and gas sector, the wholesale, retail and import/export trades sector, and the transport, storage and communications sector, ranging from 0.6% to 1.1%. As for the building and construction and related trades sector, and the financial institutions and insurance sector, both registered a decrease of 0.3% in June 2005. The decrease in the financial institutions and insurance sector was largely due to the significant increase in the number of new recruits who were paid with lower salaries than the existing staff and the internal staff movement.
After netting out the increase in consumer prices, the real indices decreased in almost all the major sectors, ranging from 0.3% to 1.3%, though that of the transport, storage and communications sector rose by 0.1% in real terms.
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 increase and gain in seniority.
Comparing June 2005 with June 2004, the overall Salary Index (B) increased by 2.1% in nominal terms or 1.1% in real terms. The different movement between the Salary Index (A) and the Salary Index (B) was partly attributable to the new recruits (included only in Salary Index (A) but not in Salary Index (B)) who generally received lower pay than the existing employees.
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 2005 in respect of the major economic sectors covered are shown in the tables attached.
In June 2005, 59% of the middle-level managerial and professional employees covered in the survey were entitled to guaranteed year-end extra pay (57% in June 2004), 69% to profit-sharing bonuses (67% in June 2004), and 22% to housing benefits of some kind (20% in June 2004).
The salary indices are compiled yearly 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 Census and Statistics Department since 1984 to measure changes in salary rates for middle-level managerial and professional employees. A sample of about 250 companies was selected for the survey in 2005.
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, and other guaranteed and regular bonuses and allowances.
Details of the salary movement, average salary rate for major occupations, and statistics on employee entitlement to various fringe benefits, together with a description of the survey methodology, are published in the "2005 Report of Salary and Employee Benefits - Managerial and Professional Employees (Excluding Top Management)". The publication is now on sale at HK$26 per copy. Both print version and download version of the publication can be purchased online at the "Statistical Bookstore, Hong Kong" (http://www.statisticalbookstore.gov.hk). Download version of the publication can be purchased at 75% of its original price exclusively at the online Statistical Bookstore. Print version if purchased online is also offered a discount, at 85% of its original price at the Statistical Bookstore as well as the Government Bookstore (http://www.isd.gov.hk/eng/bookorder.htm). For purchase of print version, this can be done through mail order by returning a completed order form which can be downloaded from the C&SD's website (http://www.censtatd.gov.hk/eng/prod_serv/forms_index.html). Purchase can also be made in person at the Publications Unit of the C&SD (Address: 19/F, Wanchai Tower, 12 Harbour Road, Wan Chai; Tel.: 2582 3025).
Enquiries concerning the Salary Indices can be directed to the Wages and Labour Costs Statistics Section of the Census and Statistics Department at telephone number 2887 5584 or 2887 5564.
Ends/Tuesday, November 8, 2005
Issued at HKT 16:15
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