6306.0 - Employee Earnings and Hours, Australia, May 2014 Quality Declaration 
Previous ISSUE Released at 11:30 AM (CANBERRA TIME) 22/01/2015   
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SUPPLEMENTARY ANALYSIS

A number of changes were introduced in May 2014 to data items collected about employees. These included:
  • The item Adult/Junior employee was modified, and further categories included. The new item 'rate of pay' has the following categories: adult rate; junior rate; apprentice or trainee rate; and disability rate;
  • The actual age of the employees was collected for the first time in 2014. Prior to this, the information on age was collected only as 'under 18 years', '18 years and under 21 years' and '21 years and over'; and
  • Hours paid for data were requested for all employees, including Upper level managers and Owner managers of incorporated enterprises (collectively referred to as Managerial employees). Prior to this, hours paid for data was collected only for non-managerial employees. Despite this change, hours paid for could not be provided for Managerial employees where there was no relationship between earnings and hours. As a result, estimates of hours paid for and hourly cash earnings have only been produced for employees with a link between earnings and hours.

RATE OF PAY

Rate of pay was collected in four categories: Adult; Junior; Apprentice or trainee; and Disability. The disability rate of pay category does not measure all employees with a disability, only those paid at a specified disability rate. The disability rate of pay is based on the definition in the Fair Work Commission's National Minimum Wage Order, i.e.
    Special national minimum wage 2—for employees with disability who are unable to perform the range of duties to the competence level required of an employee within the class of work for which the employee is engaged because of the effects of disability on their productive capacity, and who meet the impairment criteria for receipt of a Disability Support Pension (and who is not a junior employee, or an apprentice, or an employee to whom a training arrangement applies): a base rate of pay set in accordance with Schedule A to the National Minimum Wage Order.

The proportion of employees by rate of pay were Adult 93.2%; Junior 4.8%; Apprentice or trainee 1.9%; and Disability 0.1%. Where possible dis-aggregated data have been produced in this release for each rate of pay. In some instances it has been necessary to collapse the Apprentice or trainee and Disability rate of pay. The table below presents average weekly total cash earnings, average age and the number of employees by rate of pay for all employees. Compositional factors, such as the proportion of full-time or part-time employees as well as permanent, fixed term or casual employees, impact the average weekly total cash earnings for a category.

ALL EMPLOYEES, Average weekly total cash earnings, Average age and Number of Employees–Rate of pay, May 2014
AVERAGE WEEKLY TOTAL
CASH EARNINGS ($)
AVERAGE AGE
(years)
NUMBER OF EMPLOYEES
('000)

Rate of Pay
ESTIMATE
Adult
1,244.10
41.0
9,225.4
Junior
246.90
17.7
471.7
Apprentice or trainee
576.60
21.4
188.7
Disability
142.40
39.0
13.1
All employees
1,182.40
39.5
9,898.9
STANDARD ERROR
Adult
10.00
0.2
109.3
Junior
10.10
0.1
30.0
Apprentice or trainee
20.90
0.3
14.7
Disability
12.10
1.8
2.9
All employees
10.30
0.2
118.4



AGE

Employee age is presented as either averages or in categories throughout the publication. Age categories have been collapsed as necessary and as a result may not be consistent across all tables. The graph below presents an overview of the distribution of the age of all employees.

Graph Image for Age Distribution, All employees, May 2014


EMPLOYEES PAID AT THE ADULT RATE OF PAY COMPARED TO ADULT EMPLOYEES

In prior cycles of the Survey of Employee Earnings and Hours, separate data were produced for Adult and Junior employees. Adult employees were defined as employees who are 21 years of age or over, and employees under 21 years old who are paid at the full adult rate for their occupation. Adult employees included employees aged 21 years of age or over on Apprentice or trainee and Disability rates of pay.

In comparison, the category Employees paid at the adult rate of pay only includes those employees paid the full adult rate of pay, regardless of age. All other rates of pay are excluded.

Results throughout this May 2014 release have been produced on the new conceptual basis, i.e. Full-time non-managerial employees paid at the adult rate of pay has been used instead of Full-time non-managerial adult employees. Synthesised estimates of Full-time non-managerial adult employees have been produced and are presented in the table below for comparative purposes only.

Comparison of Full-time non-managerial employees paid at the adult rate to Full-time non-managerial adult employees (a), May 2014
AVERAGE WEEKLY ORDINARY TIME
CASH EARNINGS ($)
AVERAGE WEEKLY TOTAL
CASH EARNINGS ($)
NUMBER OF EMPLOYEES
('000)

ESTIMATE
Full-time non-managerial employees paid at the adult rate
1,430.90
1,509.30
5,022.8
Full-time non-managerial adult employees (a)
1,421.30
1,499.10
5,091.7
All employees
1,137.70
1,182.40
9,898.9
STANDARD ERROR
Full-time non-managerial employees paid at the adult rate
8.60
10.90
81.8
Full-time non-managerial adult employees (a)
8.60
10.80
83.2
All employees
9.60
10.30
118.4

(a) This is a synthesised estimate based on the 2012 concept of Full-time non-managerial adult employees. It has been produced by combining the survey results for employees paid at the adult rate of pay plus employees aged 21 years and over paid at the Apprentice or trainee and Disability rates of pay. For further details refer to paragraphs 43 and 44 of the Explanatory Notes.


HOURS PAID FOR, MANAGERIAL EMPLOYEES

In May 2014, hours paid for data were requested for all employees, including Upper level managers and Owner managers of incorporated enterprises (referred to as Managerial employees). Data could not be provided for managerial employees where there was no relationship between earnings and hours. The table below shows estimates of hours paid for and hourly cash earnings for employees with a link between earnings and hours.


Employees with earnings linked to hours, Average weekly total hours paid for, Average hourly total cash earnings, May 2014
AVERAGE WEEKLY TOTAL
HOURS PAID FOR (hours)
AVERAGE HOURLY TOTAL
CASH EARNINGS ($)

ESTIMATE
Managerial employees (a)
34.4
60.30
All employees (b)
31.5
37.50
STANDARD ERROR
Managerial employees (a)
0.3
1.00
All employees (b)
0.2
0.20

(a) Managerial employees with a link between earnings and hours.
(b) Excluding managerial employees with no link between earnings and hours.