TUESDAY, DECEMBER 29, 1981

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THE CENSUS AND STATISTICS DEPARTMENT WOULD LIKE TO CAUTION UBERS OF PAYROLL STATISTICS NOT TO CONFUSE +PAYROLL PER PERSON ENGAGED WITH OTHER QUANTITIES LIKE AVERAGE INCOME OF PAID EMPLOYEES. IN ARRIVING AT THE FORMER QUANTITY, THE TOTAL NUMBER OF PERSONS ENGAGED+ ON A PARTICULAR REFERENCE DATE IS USED, APART FROM PAID EMPLOYEES, +PERSONS ENGAGED+ ALSO INCLUDES WORKING PROPRIETORS, BUSINESS PARTNERS, FAMILY MEMBERS ETC. WHO NORMALLY ARE NOT ON THE PAYROLL. MOREOVER, THE NUMBER OF PERSONS ENGAGED ON THE REFERENCE DATE CAN ONLY BE CONSIDERED AS AN ESTIMATE OF THE AVERAGE LEVEL OF EMPLOYMENT DURING THE MONTH IN WHICH IT FALLS. CONSEQUENTLY, THE TIME PERIOD COVERED BY EMPLOYMENT FIGURES IS NOT THE SAME AS THAT COVERED BY MONTHLY PAYROLL FIGURES, WHICH ARE OBTAINED BY AGGREGATING CASH PAYMENTS MADE OVER THE WHOLE MONTH. FURTHERMORE, AS FAR AS INCOME IS CONCERNED, EMPLOYEES' INCOME USUALLY IS NOT JUST LIMITED TO CASH PAYMENTS FOR WORK AS REFLECTED IN PAYROLL OUTLAYS. FINALLY, BECAUSE OF THE FACT THAT +PERSONS ENGAGED+ INCLUDES SOME WHO ARE NOT ON THE PAYROLL AND THE RELATIVE MAGNITUDE OF SUCH PERSONS VARIES BETWEEN SECTORS. PAYROLL PER PERSON ENGAGED CANNOT BE USED TO COMPARE AVERAGE EARNINGS OF PAID EMPLOYEES BETWEEN SECTORS.

THE DEPARTMENT ALSO WOULD LIKE TO DRAW THE PUBLIC'S ATTENTION TO THE DIFFERENCE BETWEEN PAYROLL STATISTICS AND WAGE STATISTICS WHICH ARE PUBLISHED AT HALF-YEARLY INTERVALS. ESSENTIALLY, WAGE STATISTICS ARE CONCERNED WITH WAGE RATES OR RATES OF PAY. THEY INDICATE THE AMOUNT OF REMUNERATION (INCLUDING FRINGE BENEFITS) WORKERS RECEIVE PER UNIT OF TIME WORKED. ON THE OTHER HAND, PAYROLL STATISTICS ARE CONCERNED WITH THE TOTAL AMOUNT OF CASH EARNINGS WORKERS RECEIVE DURING A PARTICULAR PERIOD. FURTHERMORE, SINCE THE DATA ARE DERIVED FROM TWO DIFFERENT SURVEYS DESIGNED TO SERVE DIFFERENT PURPOSES ITEMS OF EMPLOYEE EARNINGS COVERED IN THE TWO SURVEYS ARE ALSO DIFFERENT TO SOME EXTENT. FOR EXAMPLE, CERTAIN BENEFITS IN KIND (AS OPPOSED TO PAYMENTS IN CASH) SUCH AS FREE MEALS AND TRANSPORTATION ARE REFLECTED IN WAGE RATES INCLUDING FRINCE BENEFITS BUT ARE LEFT OUT IN PAYROLL FIGURES. ON THE OTHER HAND, CERTAIN IRREGULAR ITEMS SUCH AS OVERTIME ALLOWANCE, SEVERANCE PAY AND PAY IN LIEU OF LEAVE ARE CONSIDERED TO BE PART OF CASH EARNINGS BUT ARE EXCLUDED FROM THE CALCULATION OF WAGE RATES.

ALTHOUGH THE WAGE RATE DETERMINES TO SOME EXTENT THE TOTAL AMOUNT OF CASH EARNINGS A WORKER RECEIVES DURING A SPECIFIED PERIOD, IT IS NOT THE SOLE DETERMINANT. TOTAL CASH EARNINGS DEPEND UPON THE TOTAL AMOUNT OF WORK PERFORMED (SAY, IN NUMBER OF DAYS OR HOURS FOR TIME-RATED WORKERS), THE CORRESPONDING RATES OF PAY (WAGE RATES) AND ANY OTHER SPECIAL PAYMENTS APPLICABLE. THEREFORE, A WAGE RATE INCREASE DOES NOT NECESSARILY LEAD TO A CORRESPONDING INCREASE IN TOTAL EARNINGS AS REFLECTED IN PAYROLL OUTLAYS. A DECREASE IN HOURS WORKED MAY CAUSE TOTAL EARNINGS TO DROP DESPITE A WAGE RATE INCREASE. SIMILARLY, AN INCREASE IN TOTAL PAYROLL OUTLAY OR PAYROLL PER PERSON ENGAGED DOES NOT NECESSARILY IMPLY A CORRESPONDING INCREASE IN WAGE RATES.

IN FACT,

PAYROLL STATISTICS ARE CONTAINED IN THE REPORT OF EMPLOYMENT, VACANCIES AND PAYROLL STATISTICS PUBLISHED QUARTERLY BY THE CENSUS AND STATISTICS DEPARTMENT AND WILL SOON BE AVAILABLE ON SALE AT THE GOVERNMENT PUBLICATIONS CENTRE. ENQUIRIES CAN BE DIRECTED TO THE EMPLOYMENT AND EARNINGS STATISTICS SECTION OF THE CENSUS AND STATISTICS DEPARTMENT.

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