Employee Earnings and Hours, Australia, May 2014

Analysis of results for all employees provides an opportunity to compare broad earnings and employee characteristics by classifications of interest such as sex, method of setting pay, occupation, industry and sector, with the influence of compositional factors such as the proportion of part-time or casual employees. For example, an industry with low average weekly total cash earnings may have a high proportion of part-time or casual employees relative to other industries.

Key results by category

The diagram below shows for employees in scope of the May 2014 Survey of Employee Earnings and Hours, the proportion of employees by category of employee.

In May 2014 there were 9,898,900 employees, of whom 49.5% were male and 50.5% were female. Average weekly total cash earnings was $1,182.40 for all employees, $1,429.80 for male employees and $940.20 for female employees. The average age of both male and all female employees was 39.5 years.

Full-time employees made up 60.0% of all employees, had average weekly total cash earnings of $1,568.80 and had an average age of 40.4 years. Part-time employees accounted for 40.0% of all employees, had average weekly total cash earnings of $602.80 and had an average age of 38.1 years.

Male employees were predominantly full-time (76.6% of male employees). Full-time males had average weekly total cash earnings of $1,680.70 and an average age of 40.8 years. Part-time male employees had average weekly total cash earnings of $608.00 and were, on average, younger than full-time males with an average age of 35.5 years.

NON-MANAGERIAL EMPLOYEES

Analysis of estimates for all non-managerial employees provides an opportunity to compare hours paid for and hourly earnings of permanent or fixed term employees (full-time and part-time) as well as casual employees. This aids comparison by classifications of interest such as occupation, industry and method of setting pay at a consistent unit of quantity (i.e. hours and dollars per hour). It also allows analysis of the composition of weekly earnings. For example, average weekly total cash earnings may be identical for two categories of employees, however employees in one category may be paid for fewer hours per week and receive higher average hourly earnings.

Key results by category

Non-managerial employees received average weekly total cash earnings of $1,100.40. They were paid for an average 31.2 hours per week at an average hourly total cash earnings rate of $35.30.

Permanent full-time non-managerial employees were paid for an average 39.6 hours per week at an average hourly total cash earnings rate of $37.30 and received $1,477.90 average weekly total cash earnings. These employees comprised 54.9% of all non-managerial employees.

Permanent part-time non-managerial employees comprised 21.5% of all non-managerial employees. They were paid for an average 23.0 hours per week at an average hourly total cash earnings rate of $31.90, resulting in average weekly total cash earnings of $733.30. 

Casual non-managerial employees comprised 23.5% of all non-managerial employees. These employees were paid for an average 19.2 hours per week at an average hourly total cash earnings rate of $29.00 to receive average weekly total cash earnings of $555.70. 

Permanent full-time males represented 33.7% of all non-managerial employees. They were paid for an average 40.5 hours per week at an hourly cash rate of $39.10 to receive average weekly total cash earnings of $1,579.80. 

Permanent full-time females represented 21.2% of all non-managerial employees. These employees were paid for an average 38.3 hours per week at an hourly cash rate of $34.40 to receive $1,316.20 average weekly total cash earnings.

Occupation

For all non-managerial employees, Professionals had the highest average hourly total cash earnings ($47.60), followed by Managers($45.60). Managers were, on average, paid for more total hours per week than Professionals (37.3 hours and 32.0 hours respectively). As a result Managers received higher average weekly total cash earnings than Professionals ($1,702.10 and $1,523.50, respectively).

Sales workers had the lowest average hourly total cash earnings ($25.60) and were paid for the lowest average total hours per week (24.2 hours). As a result they also received the lowest average weekly total cash earnings ($618.20) of all occupation groups. 

Labourers had the second lowest average hourly total cash earnings ($27.60) and were paid for an average 29.8 hours per week. As a result, they received higher average weekly total cash earnings ($822.50) than Community and personal services workers ($759.10), who received higher average hourly total cash earnings ($29.40) but were paid for fewer average total hours (25.8 hours).

Industry

For all non-managerial employees, those in the Mining industry had the highest average hourly total cash earnings ($56.20) and average weekly total hours paid for (42.6 hours), resulting in the highest average weekly total cash earnings ($2,394.90).

Non-managerial employees in the Accommodation and food services had the lowest average hourly total cash earnings ($23.10) and average weekly total hours paid for (22.7 hours), resulting in the lowest average weekly total cash earnings ($524.00).

Methods of setting pay

Amongst non-managerial employees, the most common method of setting pay was Collective agreement (43.5%). Employees paid byCollective agreement had the highest average hourly total cash earnings ($37.80), and were paid for an average 31.0 total hours per week. As a result these employees received average weekly total cash earnings of $1,170.90.

Employees paid by Individual arrangement accounted for 36.1% of non-managerial employees and received the highest average weekly total cash earnings of $1,240.80. They were paid for the highest average hours per week (33.8 hours) at an average hourly total cash rate of $36.70.

Employees paid by Award only had the lowest average hourly total cash earnings ($25.90), were paid for the lowest average total hours per week (27.1 hours) and received the lowest average weekly total cash earnings ($702.80). The employees accounted for 20.4% of all non-managerial employees.

For permanent full-time non-managerial employees, the most common method of setting pay was Individual arrangement (45.1%). For casual non-managerial employees, Award only (38.9%) was the most common method of setting pay.

The highest average hourly total cash earnings received by non-managerial employees were paid to permanent full-time males under aCollective agreement ($42.00). They were also paid for the highest average weekly total hours (41.1 hours), resulting in the highest average weekly total cash earnings ($1,725.20).

FULL-TIME NON-MANAGERIAL EMPLOYEES PAID AT THE ADULT RATE

Analysis of estimates for full-time non-managerial employees paid at the adult rate provides an opportunity to compare earnings and hours paid for by classifications of interest such as sex, method of setting pay, occupation, industry and sector without compositional elements such as the proportion of part-time employees, or employees paid at junior, apprentice or trainee or disability rates. For example, an industry with a large proportion of part-time employees and employees paid at the junior rate will have lower average earnings for all employees than an industry with a small proportion of part-time employees and employees paid at the junior rate.

Key results by category

In May 2014, there were 5,022,800 full-time non-managerial employees paid at the adult rate of whom 61.1% were male and 38.9% were female. The majority of these employees (95.4%) were employed on a permanent or fixed term basis. Less than one in 20 full-time non-managerial employees paid at the adult rate (4.6%) were casual.

Average weekly total cash earnings was $1,509.30 for full-time non-managerial employees paid at the adult rate ($1,625.70 for male employees and $1,326.10 for female employees). For these employees, average weekly total hours paid for was 39.7 hours (40.7 hours for males and 38.3 hours for females). Average hourly total cash earnings was $38.00 for all full-time non-managerial employees paid at the adult rate ($40.00 for male employees and $34.60 for female employees). 

Occupation 

Among full-time non-managerial employees paid at the adult rate, Machinery operators and drivers had the highest average weekly total hours paid for (44.3 hours). Clerical and administrative workers had the lowest average weekly total hours paid for (38.1 hours). Professionals had the highest average hourly total cash earnings ($47.60) and Sales workers had the lowest ($29.00). 

Industry

Average weekly total hours paid for was highest in the Mining industry (43.3 hours) and lowest in the Education and training industry (37.7 hours) for full-time non-managerial employees paid at the adult rate. The Mining industry also had the highest average hourly total cash earnings of $56.60. Full-time non-managerial employees paid at the adult rate in the Accommodation and food services industry had the lowest average hourly total cash earnings of $25.90. 

The Manufacturing industry employed the highest proportion of all full-time non-managerial employees paid at the adult rate (9.9%), followed by the Health care and social assistance industry (9.1%). 


Sector

For full-time non-managerial employees paid at the adult rate, average weekly total hours paid for was higher in the private sector (40.2 hours) than in the public sector (38.3 hours). In contrast, average hourly total cash earnings was higher in the public sector ($42.30) than the private sector ($36.80).


Methods Of Setting Pay

The most common method of setting pay for full-time non-managerial employees paid at the adult rate was an Individual arrangement (45.4%). The average weekly total cash earnings for these employees was $1,512.50. On average, they were paid for a total of 39.5 hours a week at an average hourly total cash earnings rate of $38.30. 

The next most common method of setting pay for full-time non-managerial employees paid at the adult rate was Collective agreement (41.8%). These employees had the highest average hourly total cash earnings ($40.40) and were paid for the most total hours per week (40.0 hours). The average weekly total cash earnings for this group of employees was $1,617.20. 

The least common method of setting pay for full-time non-managerial employees paid at the adult rate was Award only (12.7%). These employees, paid for an average 39.8 weekly total hours, received the lowest average total cash earnings per week ($1,143.00) and per hour ($28.70).

DISTRIBUTION OF EARNINGS

Weekly total cash earnings, Method of setting pay

Median weekly total cash earnings for full-time non-managerial employees paid at the adult rate was $1,320.00. The lowest paid 25% of these employees received $1,011.00 or less in weekly total cash earnings. The next 50% (or inter quartile range) of full-time non-managerial employees paid at the adult rate received weekly total cash earnings between $1,011.00 and $1,774.00. 

One in 10 full-time non-managerial employees paid at the adult rate received weekly total cash earnings of $838.00 or less, while one in 10 received weekly total cash earnings of $2,370.00 or more. 

Median weekly total cash earnings for full-time non-managerial employees paid at the adult rate was highest for those paid by collective agreement ($1,472.00) followed by individual arrangement ($1,274.00) and award only ($1,001.00). 

The inter quartile range for full-time non-managerial employees paid at the adult rate was: between $1,136.00 and $1,892.00 for those paid by collective agreement; between $1,007.00 and $1,760.00 for those paid by individual arrangement; and between $836.00 and $1,308.00 for those employees paid by award only.

Weekly total cash earnings, Occupation by Sex

For all full-time non-managerial employees paid at the adult rate, occupation groups with the highest median weekly total cash earnings were Professionals ($1,678.00) and Managers ($1,615.00). 10% of Managers received weekly total cash earnings of $2,914.00 or more, and the highest paid 30% of Professionals received $2,666.00 or more. 

The occupation groups with the lowest median weekly total cash earnings for full-time non-managerial employees paid at the adult rate were Sales workers ($995.00) and Labourers ($1,045.00). 

One in 10 full-time non-managerial employees paid at the adult rate who were Machinery operators and drivers received weekly total cash earnings of $2,587.00 or more. Ten percent ofTechnicians and trades workers received weekly total cash earnings of $2,570.00 or more, while one in 10 full-time non-managerial Community and personal service workers paid at the adult rate received $2,043.00 or more.

Median weekly total cash earnings for full-time non-managerial employees paid at the adult rate was higher for males ($1,412.00) than females ($1,202.00). The lowest paid 10% of males received weekly total cash earnings of $877.00 or less compared to $798.00 or less for females. The highest paid 10% of male full-time non-managerial employees paid at the adult rate received weekly total cash earnings of $2,602.00 or more compared to $1,986.00 or more for their female counterparts.

For male full-time non-managerial employees paid at the adult rate, median weekly total cash earnings was highest for Managers, ($1,826.00) and Professionals ($1,770.00). For females,Professionals had the highest median weekly total cash earnings ($1,594.00). The median weekly total cash earnings was marginally higher for female Managers ($1,176.00) than female Machinery operators and drivers ($1,147.00). Female median weekly total cash earnings was higher at the 90th percentile for Machinery operators and drivers ($2,616.00) than for Managers ($2,579.00).

Both male and female median weekly total cash earnings was lowest for Sales workers (males $1,058.00, females $894.00) and Labourers (males $1,079.00, females $924.00). The difference between median weekly total cash earnings for male and female full-time non-managerial employees paid at the adult rate was smallest for Labourers ($155.00) and Sales workers ($164.00) and greatest for Managers ($650.00). 

Weekly total cash earnings, Industry

Median weekly total cash earnings for all full-time non-managerial employees paid at the adult rate was highest for those employees in the Mining industry ($2,427.00), which was $744.00 higher than for the next highest industry, Electricity, gas, water and waste services ($1,683.00). One in five full-time non-managerial employees paid at the adult rate in the Mining industry received weekly total cash earnings of $3,045.00 or more, higher than in Construction ($2,412.00) and Electricity, gas, water and waste services ($2,387.00).

In contrast, industries with the lowest median weekly total cash earnings for all full-time non-managerial employees paid at the adult rate were Retail trade ($950.00) and Accommodation and food services ($963.00).

Weekly total cash earnings, Sector

Median weekly total cash earnings was higher for full-time non-managerial employees paid at the adult rate in the public sector ($1,532.00) than the private sector ($1,247.00). Earnings for the highest paid 10% were higher in the private sector ($2,404.00) than the public sector ($2,249.00).

EMPLOYEES PAID BY AWARD ONLY

Employees paid by Award only is a population of interest to many users. Selected results for these employees have been presented below. 

Key results by category

Of the 1,860,700 employees paid by Award only, 44.6% were casual, 37.0% were permanent full-time and 18.4% were permanent part-time. The average age of all employees paid by Award only was 35.7 years. The average weekly ordinary time cash earnings for these employees was $682.50.

The average weekly ordinary time cash earnings for permanent full-time employees paid by Award only was $1,012.00. The average age of these employees was 36.4 years. They were paid for an average 38.0 ordinary time hours at an average hourly ordinary time cash rate of $26.60. 

Permanent part-time employees paid by Award only were, on average, 38.5 years of age, worked an average of 22.2 ordinary time hours a week at an average hourly ordinary time cash rate of $25.50. These employees received $564.70 in average weekly ordinary time cash earnings.

The average age of casual employees paid by Award only was 34.0 years. The average hourly ordinary time cash earnings rate for these employees was $24.60 and they were paid for an average 18.6 ordinary time hours. They received $457.40 in average weekly ordinary time cash earnings.

Occupation 

Community and personal service workers made up the largest proportion of all employees paid by Award only, followed by Sales workers (21.2% and 20.7% respectively). Average weekly total cash earnings was $654.20 for Community and personal service workersand $470.60 for Sales Workers.

Industry

Employees in the Retail trade industry made up the largest proportion of all employees paid by Award only, followed by theAccommodation and food services industry (17.2% and 17.0% respectively). Average weekly total cash earnings was $553.70 for employees in the Retail trade industry and $519.20 for employees in the Accommodation and food services industry.

States and territories 

New South Wales had the largest number of employees paid by Award only (680,300 employees). This represented 21.8% of all employees in New South Wales. These employees received average weekly total cash earnings of $857.50.

Employees paid by Award only comprised 27.3% of all employees in Tasmania, making this the state or territory with the largest proportion of employees paid by this method of setting pay. These employees received $630.10 in average weekly total cash earnings.

Employees paid by Award only in the Australian Capital Territory received the lowest average weekly total cash earnings ($550.40) and comprised 14.3% of all employees in that territory. The Northern Territory had the smallest proportion of all employees paid by Award only(13.4%) but these employees had the highest average weekly total cash earnings of all states and territories ($868.50).

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. 

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.

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. 

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.

Source: http://www.abs.gov.au/