XN000022-1996-11-22 — Page 16

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Both Salary Indices (A) and (B) are designed for the purpose of measuring changes in salary rates for middle-level managerial and professional employees of the companies covered by the survey.

As the Salary Index (B) covers only those employees who remained in the same occupation and in the same company in 1995 and 1996, it 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 the 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 latter 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.

Year-on-year changes in the Nominal Salary Index (A) and Nominal Salary Index (B) for June 1996 in respect of major economic sectors are shown in the table below.

By deflating the Nominal Salary Indices by the Hang Seng Consumer Price Index, the Real Salary Indices are obtained to measure changes in the purchasing power of the amount of money earned. Comparing June 1996 with the same month in 1995, the overall Real Salary Indices (A) and (B) registered increases of 1.2% and 3.3% respectively.

Among the middle-level managerial and professional employees covered in the survey, 73% of them were entitled to profit-sharing bonus, 42% to housing benefits of some kind and 89% to provident/retirement fund or pension. It was also found that 98% of them were entitled to guaranteed year-end extra pay.

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The Census and Statistics Department has been conducting the Annual Survey of Salaries and Employee Benefits Managerial and Professional Employee (Excluding Top Management) since 1984 to measure changes in salary rates for middle-level managerial and professional employees.

A sample of about 200 companies is selected for the survey in 1996. One hundred and eighty companies were successfully enumerated, involving 5,754 employees covered by the survey.

In the survey, the salary rate is defined to include, in addition to basic salaries, cost-of-living allowance, guaranteed year-end extra pay, commission and tips, and other guaranteed and regular bonuses and allowances. Apart from salary payment, fringe benefits also constitute an important element of pay package for employees at middle-level managerial and professional levels.