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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 4.4% in June 2014 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 0.9% in June 2014 over 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 2014, ranging from 3.7% to 6.1%.
After discounting the increase in consumer prices, year-on-year increases in the Real Salary Index (A) were also observed in all the individual industry sections, ranging from 0.3% to 2.6%.
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 2014 with June 2013, the overall Salary Index (B) increased by 5.3% in nominal terms or 1.8% 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 (who were 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 2014 in respect of the selected industry sections covered are shown in the tables attached.
The survey findings also showed that in June 2014, 75% of the middle-level managerial and professional employees were entitled to profit-sharing bonuses (74% in 2013), 40% to guaranteed year-end extra pay (42% in 2013), and 30% to housing benefits of some kind (29% in 2013).
Commentary
A Government spokesman noted that the average salaries of all middle-level managerial and professional employees, as measured by the Salary Index (A), registered a solid increase of 4.4% in nominal terms in June 2014 over a year earlier on the back of a stable labour market. Excluding newly recruited and promoted employees who normally have lower pay, the average nominal salary grew at a faster rate of 5.3% year-on-year, translating into real growth of 1.8% after discounting inflation.
The spokesman also pointed out that increases in both Nominal Salary Indices (A) and (B) were seen across all the selected industries and occupational groups, with particularly notable gains observed in the building and construction and related trades, and transportation, storage, communications and travel agencies sections, as well as among engineering and other technical support personnel, and financial management personnel.
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 2014.
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 "2014 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/hkstat/sub/sp210.jsp?productCode=B1050010).
Enquiries concerning the Salary Indices can be directed to the Wages and Labour Costs Statistics Section (2) of the Census and Statistics Department at 2887 5230.
Ends/Monday, October 27, 2014
Issued at HKT 16:30
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