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6306.0 - Employee Earnings and Hours, Australia, May 2002  
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 26/03/2003   
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Adult employees

Employees who are 21 years of age or over, and employees under 21 who are paid at the full adult rate for their occupation.

Average (mean) earnings

The amount obtained by dividing the total earnings of a group (e.g. full-time employees) by the number of employees in that group.

Average (mean) total hours

The amount obtained by dividing the total hours paid for of a group (e.g. full-time employees) by the number of employees in that group.

Awards

Legally enforceable determinations made by federal or state industrial tribunals that set the terms of employment (pay and/or conditions) usually in a particular industry or occupation.

Base pay

Base pay refers to the award pay or agreed rate of pay for ordinary time hours paid for. It includes base pay from workplace agreements and enterprise bargaining awards or agreements. For employees covered by an award or workplace/enterprise agreement it includes all allowances (dirt, height, tool etc.) and penalty payments (e.g. shift loadings) specified in the award or agreement.

Collective agreements

Agreements between an employer (or group of employers) and a group of employees (or one or more unions or employee associations representing the employees). They set the terms of employment (pay and/or conditions) for a group of employees, and may be either registered or unregistered. Federal or state industrial tribunals or authorities register agreements.

Employees

Persons who worked for a private or public employer, and received pay for the reference period in the form of wages or salaries, a commission while also receiving a retainer, tips, piece rates or payment in kind. Persons who operated their own incorporated enterprise with or without hiring employees were also included as employees.

Employees whose pay is set by awards only

Employees who had the main part of their wages and salaries set by awards and who were not paid more than the award rate of pay.

Employees whose pay is set by collective agreements

Employees who had the main part of their wages or salaries set by registered or unregistered collective agreements or enterprise awards.

Employees whose pay is set by individual agreements

Employees who had the main part of their wages or salaries set by individual agreements. This group mainly consists of employees whose pay is set by an individual common law contract, employees receiving overaward payments by individual agreement, and working proprietors of incorporated enterprises who set their own rate of pay.

Employer size

A measure of the size of the business in terms of the number of employees within that business. The employer size reflects the size of the business in each state or territory and not necessarily the size of the business Australia-wide.

Federal registered agreements

Individual and collective agreements which have been certified, approved or registered with the relevant federal industrial tribunal or authority. See Jurisdiction.

Full-time employees

Employees who normally work the agreed or award hours for a full-time employee in their occupation. If agreed or award hours do not apply, employees are regarded as full-time if they usually work 35 hours or more per week. Employees who work variable hours are classified as full-time if they usually work 35 hours or more per week.

Individual agreements/contracts

Set the terms of employment (pay and/or conditions) for an individual employee and are agreed to by the individual rather than on behalf of the individual. Individual agreements/contracts may be either registered or unregistered. Federal or state industrial tribunals or authorities register agreements.

Industry

Classified according to the Australian and New Zealand Standard Industrial Classification (ANZSIC), 1993 (cat. no. 1292.0).

Junior employees

Employees who are under 21 years of age and are not paid at the adult rate for their occupation.

Jurisdiction

The federal or state industrial tribunal or authority with whom written individual or collective agreements have been certified, approved or registered. Employees based in the Northern Territory, Australian Capital Territory and Victoria are covered by the federal jurisdiction. Employees based in other states may be covered by either the federal or state jurisdiction depending on circumstances that prevail in the workplace.

Managerial employees

Employees who are in charge of a significant number of employees and/or have strategic responsibilities in the conduct or operations of the organisation and usually do not receive payment for overtime. Includes professionally qualified staff who primarily perform managerial tasks in conjunction with utilising their professional skills. Working proprietors and working directors of their own incorporated businesses are regarded as managerial employees.

Median earnings

The amount of earnings which divides employees into two groups containing equal numbers of employees, one half with earnings below the median and the other half with earnings above the median.

Method of setting pay

How the main part of an employee's pay was set. The mechanisms for setting an employee's pay are awards, collective agreements or individual agreements.

Non-managerial employees

Employees who are not managerial employees as defined above, including non-managerial professionals and some employees with supervisory responsibilities.

Occupation

Classified according to the Australian Standard Classification of Occupations (ASCO), Second Edition (cat. no. 1220.0).

Ordinary time earnings

Comprises base pay plus payment by measured result. Excluded are non-cash components of salary packages, salary sacrificed, overtime payments, retrospective pay, pay in advance, leave loadings, severance pay, and termination and redundancy payments.

Ordinary time hours paid for

Award, standard or agreed hours of work, paid for at the ordinary time rate. Included are stand-by or reporting time which are part of standard hours of work, and that part of annual leave, paid sick leave and long service leave taken during the reference period. Ordinary time hours paid for was not collected for managerial employees.

Overtime earnings

Payment for hours in excess of award, standard or agreed hours of work.

Overtime hours paid for

Hours paid for in excess of award, standard or agreed hours of work. Overtime hours paid for was not collected for managerial employees.

Part-time employees

Employees who normally work less than the agreed or award hours for a full-time employee in their occupation. If agreed or award hours do not apply, employees are regarded as part-time if they usually work less than 35 hours per week.

Payment by measured result

Refers to earnings which vary according to measured performance (e.g. piecework, production and task bonuses, and commissions).

Percentiles

Any of a hundred divisions of an earnings or hours distribution. For example:

  • 25% of employees earn less than or equal to the 25th percentile
  • 75% of employees earn less than or equal to the 75th percentile.


Reference period

The survey refers to the last pay period ending on or before 17 May 2002. All estimates of earnings and hours in this publication are weekly, therefore for employees paid other than weekly, hours and earnings have been converted to a weekly basis.

Sector

Public sector comprises local government authorities and all government departments and agencies created by, or reporting to, the Commonwealth, or state/territory Parliaments. The private sector comprises all organisations not classified as public sector.

Total hours paid for

Equal to ordinary time hours paid for plus overtime hours paid for. Total hours paid for was not collected for managerial employees.

Weekly Total Earnings

Weekly total earnings of employees is equal to weekly ordinary time earnings plus weekly overtime earnings.

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