The average wage rate for all the major sectors fell by 1.5% in nominal terms in December over a year earlier, smaller than the 2.1% fall in September 2003, according to the Census & Statistics Department.

About 49% of the companies it surveyed reported some decrease in average wage rates in December over a year earlier, mainly due to cuts in basic salaries and guaranteed allowances. 

On the other hand, 40% of the companies surveyed recorded some increase in average wage rates over the same period. This was partly due to retrenchment of lower-paid clerical staff and operatives, leading to a rise in the proportion of relatively higher-paid workers over a year earlier. The remaining 11% reported almost no change in average wage rates.

Average payroll up 1.4% in Q4

After discounting the decrease in consumer prices as measured by the Consumer Price Index, the overall average wage rate for all the major sectors surveyed taken together fell by 0.3% in real terms in December over a year earlier.

The index of payroll per person engaged for all the major sectors surveyed taken together also decreased, by 1% in nominal terms in Q4 2003 over a year earlier. This was also smaller than the decrease of 1.8% in Q3.

After netting out the effect of the decrease in consumer prices, average payroll per person engaged increased by 1.4% in real terms in Q4 over a year earlier.

Finance, insurance sector sees pay rise

For the nominal wage indices, year-on-year decreases were seen in almost all the major sectors in December, ranging from 2.1% to 2.6%. The financing, insurance, real estate and business services sector was the only sector with a rise in nominal wages, of 0.7%.

For the real wage indices, year-on-year decreases were likewise observed in almost all the major sectors in December, ranging from 0.8% to 1.4%. The financing, insurance, real estate and business services sector was the only sector with a rise in real wages, of 2%.