XN000022-1991-11-21 — Page 3

THURSDAY, NOVEMBER 21, 1991

SALARY INDEXES FOR MANAGERIAL AND PROFESSIONAL EMPLOYEES FOR JUNE 1991

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THE

AVERAGE SALARY LEVEL FOR MANAGERIAL AND PROFESSIONAL EMPLOYEES, AS INDICATED BY THE OVERALL NOMINAL SALARY INDEX (A), WAS 10.6% HIGHER IN JUNE 1991 THAN IN JUNE 1990.

THE

THE OVERALL NOMINAL SALARY INDEX (B), WHICH MEASURES CHANGES IN AVERAGE SALARY LEVEL ONLY FOR THOSE MANAGERIAL AND PROFESSIONAL EMPLOYEES WHO REMAINED IN THE SAME OCCUPATION AND IN THE SAME COMPANY IN BOTH 1990 AND 1991, ROSE BY 15.1% OVER THE SAME PERIOD.

THE ABOVE RESULTS ARE SOME OF THE FINDINGS OF THE 1991 SURVEY OF SALARIES AND EMPLOYEE BENEFITS

MANAGERIAL AND PROFESSIONAL EMPLOYEES (EXCLUDING TOP MANAGEMENT) RELEASED TODAY (THURSDAY) BY THE CENSUS AND STATISTICS DEPARTMENT.

BOTH SALARY INDEXES (A) AND (B) ARE DESIGNED FOR THE PURPOSE OF MEASURING CHANGES IN SALARY LEVELS.

HOWEVER, BY CONFINING TO THOSE EMPLOYEES WHO REMAINED IN THR SAME OCCUPATION AND IN THE SAME COMPANY IN 1990 AND 1991, THE SALARY INDEX (B) ONLY ACCOUNTS FOR SALARY CHANGES DUE TO GENERAL INCREMENT, MERITORIOUS INCREASE AND GAIN IN SENIORITY.

ON THE OTHER HAND, THE SALARY INDEX (A) TAKES INTO ACCOUNT EFFECTS OF LABOUR MOBILITY AS WELL.

THE RATE OF INCREASE OF THE SALARY INDEX (B) IS USUALLY HIGHER THAN THAT OF THE SALARY INDEX (A) BECAUSE THE SALARY INDEX (A) INCLUDES THE SALARIES OF NEWLY RECRUITED AND NEWLY PROMOTED EMPLOYEES, WHO TEND TO BE PAID COMPARATIVELY LOWER SALARIES THAN THOSE ALREADY IN THE SAME RANK.

BETWEEN JUNE 1990 AND JUNE 1991, THE NOMINAL SALARY INDEX (A) FOR LARGE COMPANIES INCREASED BY 10.2% AND THAT FOR MEDIUM-SIZED COMPANIES BY 10.7%.

AS REGARDS THE NOMINAL SALARY INDEX (B), THE CORRESPONDING INCREASES WERE 15.9% AND 14.9% RESPECTIVELY.

THE NOMINAL SALARY INDEX (A) AND NOMINAL SALARY INDEX (B) FOR JUNE 1991 ANALYSED BY MAJOR ECONOMIC SECTOR ARE SHOWN IN THE TABLE ATTACHED.

BY

DEFLATING THE NOMINAL SALARY INDEXES BY THE HANG SENG CONSUMER PRICE INDEX, THE REAL SALARY INDEXES ARE OBTAINED TO MEASURE CHANGES IN THE PURCHASING POWER OF THE AMOUNT OF MONEY BARNED.

ON A YEAR-ON-YEAR COMPARISON, THE REAL SALARY INDEX (A) REGISTERED A DECREASE OF 0.3% IN JUNE 1991, WHILE THE REAL SALARY INDEX (B) SHOWED AN INCREASE OF 3.8%.

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