|Page tools: Print Page RSS Search this Product|
The Wage Cost Index (WCI) was compiled for the first time for the December quarter 1997 (with a base of September quarter 1997 = 100.0). For the June quarter 2002, the total hourly rates of pay excluding bonuses index for Australia was 115.9, reflecting quarterly growth from March quarter 2002 of 0.6% and annual growth of 3.1%.
The WCI measures labour market related changes in the wage and salary component of the price of labour. The WCI can change as a result of minimum wage case outcomes, enterprise bargaining and individual agreements between employers and employees, other formal and informal pay setting outcomes and other labour market related forces, for example skill shortages. It is not affected by:
l changes in the nature of work performed (for example, different tasks or responsibilities);
l changes in the quantity of work performed (for example, increases in hours worked);
l changes in the characteristics of the job occupant (for example, age, apprenticeship year, successful completion of training or qualifications, grade or level, experience, etc);
l changes resulting from the individual performance of a job occupant.
The WCI measures changes over time in wage and salary rates of pay for employee jobs, unaffected by changes in the quality or quantity of work performed. It is a measure of movements in the price of labour services, and so differs from the average weekly earnings measure. Estimates of average weekly earnings are derived simply by dividing estimates of employees' total weekly earnings by estimates of the number of employees. Changes in the average may be affected not only by changes in the in level of earnings of employees but also by changes in the composition of the wage and salary earners segment of the labour force.
Governments, unions, employer groups, researchers and private bodies use the WCI as a guide to changes in wage and salary rates. It is used for adjusting business contracts as well as for economic analysis.
Wage Cost Index, Australia (6345.0)
Contains quarterly indexes measuring changes in wage and salary costs for employee jobs, classified by State and Territory, sector (private/public), industry and occupation.
Information Paper: Wage Cost Index, Australia (6346.0)
Provides more information on the methodology and construction of the WCI.