Salary Indices for Managerial and Professional Employees for June 2020
**********************************************************************
After discounting the increase in consumer prices as measured by the Consumer Price Index (C), the Real Salary Index (A) increased by 0.3% in June 2020 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 selected industry sections in June 2020, ranging from 0.7% to 1.6%.
After discounting the increase in consumer prices, year-on-year increases in the Real Salary Index (A) ranging from 0.4% to 0.8% were observed in the manufacturing, electricity and gas supply section; building, construction and related trades section; and financing and insurance section in June 2020. Yet, the transportation, storage, communications and travel agencies section remained virtually unchanged over a year earlier while the import/export, wholesale and retail trades section recorded a mild year-on-year decrease of 0.1% in real terms.
The Salary Index (A) measures changes in the average salary rate 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 occupations and in the same companies in two consecutive years, is also compiled. Its main purpose is to measure salary changes due to general salary adjustment, meritorious performance and gain in seniority.
Comparing June 2020 with June 2019, the overall Salary Index (B) increased by 2.8% in nominal terms or 2.0% 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 the Salary Index (A) but not in the Salary Index (B)) as compared with existing employees. Hence, in general, increases in the Salary Index (B) are greater than the corresponding increases in the 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 2020 in respect of the selected industry sections covered are shown in the tables attached.
The survey findings also showed that in June 2020, about 40% of the middle-level managerial and professional employees were entitled to guaranteed year-end bonus/payment and about 70% to irregular profit-sharing bonuses. Moreover, the majority of them were entitled to fringe benefits of some kind, including paid annual leave and insurance protection (in addition to the statutory requirements), housing benefits, medical benefits, course fee subsidies for employees' further studies, etc.
Commentary
A Government spokesman said that the average salaries of middle-level managerial and professional employees, as measured by the Nominal Salary Indices (A) and (B), continued to increase in June 2020 over a year earlier, but the rates of increase decelerated to the slowest in 11 years amid subdued economic conditions. The increases in the average salaries in all selected industry sections slowed by varying degrees.
Looking ahead, the salaries of middle-level managerial and professional employees will continue to face downward pressure in the near term as the overall economic situation remains weak amid the still evolving global pandemic. The Government will monitor the developments closely.
Other information
The salary indices are compiled annually based on the results of the Survey of Salaries and Employee Benefits - Managerial and Professional Employees (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 in selected industries. A sample of about 270 companies was selected for the survey in 2020.
For the purpose of the survey, salary rate is defined to include monthly basic salary, cost-of-living allowance, guaranteed year-end extra bonus/payment, commission, 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 and coverage, are published in the "2020 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 3105 2369.
Ends/Tuesday, October 27, 2020
Issued at HKT 16:30
Issued at HKT 16:30
NNNN