The average wage rate fell 1.3% in nominal terms in September over a year earlier, the Census & Statistics Department says. This was larger than the 0.3% decrease in June.

About 41% of companies surveyed reported some decrease in average wage rates, attributable mainly to cuts in basic salaries and guaranteed allowances.

About 44% of the companies surveyed recorded some increase in average wage rates over the same period. This was mainly 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 15% reported almost no change in average wage rates.

After discounting the increase in consumer prices, the overall average wage rate for all the major sectors dropped by 2.5% in real terms.

Payroll index fell 0.5%

The index of payroll per person engaged for all the major sectors surveyed taken together dropped 0.5% in nominal terms in the third quarter over a year earlier, reversing the increase of 0.4% in the second quarter.

The year-on-year fall in the third quarter was partly attributable to the reduction in payroll by some government-subvented organisations, to keep step with the civil service pay cut effective as from January.

After netting out the inflation effect, average payroll per person engaged fell 1.3% in real terms in the third quarter over a year earlier.

The wage rate includes basic wages and other regular and guaranteed allowances and bonuses. Payroll includes elements covered by wage rate as well as other irregular payments such as discretionary bonuses and overtime allowances.

The wage indices cover employees up to the supervisory level, not including managerial and professional employees.

Quarterly report available for $33 a copy

Detailed breakdowns of the payroll and wage statistics are published in the Quarterly Report of Wage & Payroll Statistics, September 2004. The publication will be available soon, for $33 a copy, from the Government Publications Centres.

It can also be purchased online at the Statistical Bookstore. Softcopies of the publications purchased are available for immediate downloading, while hardcopies will be delivered by mail.