XN000022-1984-04-15 — Page 6

SUNDAY, APRIL 15, 1984

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THESE WAGE INDEXES ARE DERIVED FROM THE SURVEY OF WAGES, SALARIES AND EMPLOYEE BENEF ITS CONDUCTED EVERY QUARTER BY THE DEPARTMENT COVERING BOTH MANUAL AND NON-MANUAL WORKERS (EXCLUDING WORKERS AT THE ADMINISTRATIVE AND PROFESSIONAL LEVELS) IN SELECTED INDUSTRIES IN THE MANUFACTURING SECTOR, THE WHOLESALE-RETAIL, IMPORT-EXPORT TRADES AND RESTAURANTS AND HOTELS SECTOR, THE TRANSPORT SERVICES SECTOR, THE BUSINESS SERVICES SECTOR AND THE PERSONAL SERVICES SECTOR.

SUCH WAGE INDEXES MEASURE CHANGES IN WAGE RATES BY HOLDING THE STRUCTURAL PATTERN OF THE LABOUR FORCE WITH RESPECT TO INDUSTRY, OCCUPATION, SEX AND MODE OF PAYMENT THE SAME AS THAT OF MARCH 1982, WHICH IS THE BASE PERIOD OF THE WAGE INDEXES.

WHILE THE NOMINAL WAGE INDEX MEASURES CHANGES IN WAGE RATES IN MONEY TERMS, THE REAL WAGE INDEX, WHICH IS OBTAINED BY DEFLATING THE NOMINAL WAGE INDEX BY THE CONSUMER PRICE INDEX (A), MEASURES CHANGES IN THE PURCHASING POWER OF WAGES ALTHOUGH THE SAME DEFLATOR IS USED FOR EACH INDUSTRY TO DERIVE THE REAL WAGE INDEX FROM ITS NOMINAL COUNTERPART, THE DIFFERENCE BETWEEN THE MOVEMENTS OF THE NOMINAL WAGE

INDEX AND THE REAL WAGE INDEX BETWEEN ANY TWO TIME PERIODS

AY VARY SLIGHTLY FROM INDUSTRY TO INDUSTRY DUE TO ROUNDING).

MAY

A SPOKESMAN FOR THE CENSUS AND STATISTICS DEPARTMENT DREW ATTENTION TO THE DIFFERENCE BETWEEN THE WAGE INDEXES AND THE INDEXES OF PAYROLL PER PERSON ENGAGED WHICH ARE ALSO PUBLISHED AT QUARTERLY INTERVALS.

HE POINTED OUT THAT WHILE WAGE RATES PROVIDE A MEASURE OF THE PRICE OF LABOUR, PAYROLL PER PERSON ENGAGED IS A MEASURE OF PER CAPITA EARNINGS, WAGE RATES REPRESENT THE AMOUNT OF REMUNERATION FOR NORMAL HOURS OF WORK, AND ARE DEFINED TO INCLUDE BASIC WAGES AND SALARIES, COST OF LIVING ALLOWANCE, MEAL BENEFITS, COMMISSIONS AND TIPS, GOOD ATTENDANCE BONUS AND NIGHT SHIFT ALLOWANCE.

IN ADDITION, YEAR-END BONUS AND OTHER GUARANTEED AND REGULAR BONUSES AND ALLOWANCES THAT ARE PAID LESS FREQUENTLY THAN MONTHLY ARE CONVERTED TO AN EQUIVALENT MONTHLY RATE WHEN COMPILING THE WAGE RATE INDEXES.

TOTAL PAYROLL, ON THE OTHER HAND, IS THE AMOUNT OF DIRECT CASH PAYMENTS THAT EMPLOYEES RECEIVE FROM EMPLOYERS.

APART FROM THE ABOVE MENTIONED CASH RECEIPTS, IT ALSO INCLUDES OVERTIME PAY AND OTHER NON-GUARANTEED AND IRREGULAR BONUSES AND ALLOWANCES.

J

HENCE, STATISTICS ON PAYROLL PER PERSON ENGAGED TEND TO BE SENSITIVE TO CHANGES IN THE NUMBER OF HOURS ACTUALLY WORKED, THE TIMING OF THE PAYMENT OF BONUSES AND BACK-PAY, AND THE COMPOSITION OF THE LABOUR FORCE. AS A RESULT, MOVEMENTS IN WAGE RATES DO NOT NECESSARILY CONFORM WITH THOSE IN PAYROLL PER PERSON ENGAGED.

THE ABOVE SURVEY FINDINGS ARE PUBLISHED IN THE REPORT OF WAGES, SALARIES AND EMPLOYEE BENEFITS STATISTICS VOL. I. DECEMBER 1983 WHICH IS ON SALE AT THE GOVERNMENT PUBLICATION SALES CENTRE.

/THE VOL.