The Resolution concerning an integrated system of wages statistics adopted by the Twelfth International Conference of Labour Statisticians (Geneva, 1973) ¹ defines earnings and wage rates as follows:

8. The concept of earnings, as applied in wages statistics, relates to remuneration in cash and in kind paid to employees, as a rule at regular intervals, for time worked or work done together with remuneration for time not worked, such as for annual vacation, other paid leave or holidays. Earnings exclude employers’ contributions in respect of their employees paid to social security and pension schemes and also the benefits received by employees under these schemes. Earnings also exclude severance and termination pay.

9. Statistics of earnings should relate to employees’ gross remuneration, i.e. the total before any deductions are made by the employer in respect of taxes, contributions of employees to social security and pension schemes, life insurance premiums, union dues and other obligations of employees.

10. (i) Earnings should include: direct wages and salaries, remuneration for time not worked (excluding severance and termination pay), bonuses and gratuities and housing and family allowances paid by the employer directly to this employee.

(a)

Direct wages and salaries for time worked, or work done, cover: (i) straight time pay of time-rated workers; (ii) incentive pay of time-rated workers; (iii) earnings of piece workers (excluding overtime premiums); (iv) premium pay for overtime, shift, night and holiday work; (v) commissions paid to sales and other personnel. Included are: premiums for seniority and special skills, geographical zone differentials, responsibility premiums, dirt, danger and discomfort allowances, payments under guaranteed wage systems, cost-of-living allowances and other regular allowances.

(b)

Remuneration for time not worked comprises direct payments to employees in respect of public holidays, annual vacations and other time off with pay granted by the employer.

(c)

Bonuses and gratuities cover seasonal and end-of-year bonuses, additional payments in respect of vacation period (supplementary to normal pay) and profit-sharing bonuses. (ii) Statistics of earnings should distinguish cash earnings from payments in kind.
...

12. Wage rates should include basic wages, cost-of-living allowances and other guaranteed and regularly paid allowances, but exclude overtime payments, bonuses and gratuities, family allowances and other social security payments made by employers. Ex gratia payments in kind, supplementary to normal wage rates, are also excluded.

13. Statistics of wage rates fixed by or in pursuance of laws or regulations, collective agreements or arbitral awards (which are generally minimum or standard rates) should be clearly distinguished from statistics referring to wage rates actually paid to individual workers. Each of these types of wage rates is useful for particular purposes.

14. Time rates of wages for normal periods of work should be distinguished from special and other rates such as piece rates, overtime rates, premium rates for work on holidays and shift rates.

The statistics of wages presented in tables 5A and 5B are, in general, average earnings per worker or, in some cases, average wage rates. Occasionally wage indices are given in the absence of absolute wage data. Some of the series cover wage earners (i.e. manual or production workers) only, while others refer to salaried employees (i.e. non-manual workers), or all employees (i.e. wage earners and salaried employees). Where they refer to specific groups of workers (e.g. adults, skilled or unskilled workers), this is indicated in footnotes. Unless otherwise stated, the series cover workers of both sexes, irrespective of age. Data by sex are presented whenever possible.

Wages are expressed in national currency. In the tables, the currency shown next to the country name is the current one. In case of change of currency in a country, the equivalence between the old and new currencies is indicated by a footnote on the relevant year.

The data on average earnings are mostly obtained from payroll data and derived from establishment sample surveys or censuses often furnishing at the same time data on hours of work and on employment. In a few cases, average earnings are compiled on the basis of social insurance statistics, collective agreements or other sources. The types of sources used are listed on page XVI.

Earnings data from payrolls of establishments usually refer to cash payments received from employers (before deduction of taxes and social security contributions payable by workers) and include remuneration for normal working hours; overtime pay; remuneration for time not worked (public holidays, annual vacation, sick leave and other paid leave); bonuses and gratuities; cost-of-living allowances and special premiums (such as end-of-year bonuses). When earnings include the value of payments in kind and family allowances, this is indicated in a footnote. Statistics of earnings derived from social insurance records usually yield lower averages than payroll data because overtime pay, incentive pay and the like may be excluded as well as wages exceeding a certain upper limit.

Statistics of wage rates are in most cases based on collective agreements, arbitral awards or other wage-fixing decisions, which generally specify minimum rates for particular occupations or groups of workers. In some countries rates actually paid correspond closely to these minima. In countries where the fixing of wage rates is widespread, series of average wage rates in particular industries or groups of industries are calculated, using as weights the numerical importance in a given year of the different occupations for which rates are available in the industries covered. Data on wage rates usually refer only to rates for adults working normal hours, and therefore payments for overtime and other supplementary wage elements are not taken into account; cost-of-living allowances, however, are often included, and other allowances fixed in the wage-setting process, such as housing allowances, are sometimes included. Some countries obtain average rates actually paid (straight-time earnings) from establishment payrolls in the same way as average earnings are obtained. Rates actually paid usually cover the remuneration on the basis of normal time worked, both for normal and overtime hours, but exclude incentive pay and other bonuses as well as the premium part of overtime pay. Rates actually paid are sometimes also gathered by labour inspectors.

The different types of wages statistics are indicated in the tables by the following codes:

(E.G.)

Earnings

(R.T.)

Wage rates

(h.)

per hour

(d.j.)

per day

(w.s.)

per week

(m.)

per month

Earnings data show fluctuations which reflect the influence both of changes in wage rates and supplementary wage payments. Weekly, daily and monthly earnings are in addition much dependent on variations in hours of work. Statistics of wage rates do not reflect the influence of changes in wage supplements nor the influence of variations in hours of work. The fluctuations of average earnings obtained from global payrolls are also influenced by changes in the employment structure, i.e. the relative importance of males, females, unskilled and skilled labour, full-time and part-time workers etc., while average wage rates are normally compiled using the employment structure of a given year as weights. Average hourly earnings are generally higher than hourly rates because the former include overtime payments, premiums, bonuses and allowances which do not enter into statistics of wage rates. Average weekly or monthly earnings should also be higher than the corresponding rates, but may sometimes fall short of wage rates because of loss of working time through sickness, other absences or part-time work. In making comparisons between wage series, account must be taken of differences in concepts, scope, methods of compilation and of presentation of the data.

It should be borne in mind that figures of wages do not reflect workers’ disposable or net earnings, since they generally represent the gross wages, before deductions such as those for taxes or social security contributions.

International comparisons should take into account differences between countries in the prices of consumer goods and services, as well as the need for a common currency and appropriate exchange rates, while analyses of wage changes over time should take into account changes in the relevant consumer prices during that time.

For further information, see ILO: An integrated system of wages statistics: A manual on methods (Geneva, 1979). For information on the differences in scope, definitions and methods of calculation, etc., used for the various national series, see ILO: Sources and Methods: Labour Statistics (formerly Statistical Sources and Methods), Vol. 2: "Employment, wages, hours of work and labour cost (establishment surveys)", second edition (Geneva, 1995) and Vol. 4: "Employment, unemployment, wages and hours of work (administrative records and related sources)" (Geneva, 2004).

The data shown in this table cover, in principle, all major divisions or categories of economic activity. Divisions or categories are shown as codes with an indication of the classification which is used, and the name corresponding to each code is given in the Appendix. Where certain divisions or categories are only represented by certain of the groups composing them, this is indicated in footnotes.

In most cases, for a given country, the statistics of wages for different activities are drawn from the same source and cover the same categories of workers. The type of source of the series is shown as a code in parentheses following the name of the country, and the coverage in terms of categories of workers is shown on the first line of the table. Where the statistics are derived from different sources or where two or more series with different coverage are supplied, the series are shown separately.

Wages are expressed in national currency. In the tables, the currency shown next to the country name is the current one. In case of change of currency in a country, the equivalence between the old and new currencies is indicated by a footnote on the relevant year.

In making comparisons of data on wages in agriculture and in other activities, it should be borne in mind that the methods of payment and the types of labour contracts and arrangements in agriculture are often quite different from those in other activities. Wherever possible, a distinction is made between permanent workers, seasonal workers and regular or casual day workers. In most cases, the statistics refer to total wages which are paid entirely in cash or to the money part of the wages only, although the workers receive payments in kind in addition. In a few cases, the value of meals and/or lodging furnished is included. Whenever possible, if earnings include the value of payments in kind, this is indicated in a footnote.

International comparisons of wages are subject to greater reservations with respect to agriculture than for other activities. The nature of the work carried out by the different categories of agricultural workers and the length of the working day and week also show considerable variation from one country to another. Seasonal fluctuations in agricultural wages are more important in some countries than in others. The methods followed in the different countries for estimating the money value of the payments in kind is not uniform.

This table shows average wages per worker in manufacturing as a whole and by major industry group or division. As far as possible, the different industries have been arranged according to the International Standard Industrial Classification of all economic activities (ISIC) Revision 3, or its former version, ISIC Revision 2 (see Appendix) with the corresponding codes. Any differences are indicated in footnotes.

Wages are expressed in national currency. In the tables, the currency shown next to the country name is the current one. In case of change of currency in a country, the equivalence between the old and new currencies is indicated by a footnote on the relevant year.

¹ For the full text of the resolution, see ILO: Current international recommendations on labour statistics (Geneva, 1988).