6310.0 - Employee Earnings, Benefits and Trade Union Membership, Australia, Aug 2006  
ARCHIVED ISSUE Released at 11:30 AM (CANBERRA TIME) 03/04/2007   
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SUMMARY OF FINDINGS


OVERVIEW

In August 2006, there were a total of 8,776,900 employees in Australia. Of these, 6,178,400 (70%) were full-time employees and 2,598,500 (30%) were part-time employees.

WEEKLY EARNINGS OF EMPLOYEES

In August 2006, the mean weekly earnings of employees in all jobs was $862, an increase of $55 (or 6.8%) since August 2005. Mean weekly earnings in all jobs was highest in the Australian Capital Territory ($1,012) and lowest in Tasmania ($739).

Mean weekly earnings of employees in all jobs has increased from $532 in August 1995, an increase of 62% over the 11 years to August 2006 (note that data was not collected in August 1996). However, it should be noted that changes in average earnings may be affected not only by changes in the level of earnings but also by changes in the overall composition of the employee workforce, including changes in:

  • proportions of full-time and part-time employees
  • number of hours worked
  • mix of occupations and industries.

The weekly earnings of employees in their main job (rather than in all jobs) is also of interest. The mean weekly earnings of employees in their main job was $851. Mean weekly earnings of employees in their main job was higher in the public sector than in the private sector ($951 compared with $827). For full-time employees, the mean weekly earnings in their main job was $1,045, while for part-time employees it was $388 in their main job. Mean weekly earnings in main job were $1,122 for full-time male employees and $908 for full-time female employees.

Another useful measure of earnings is to look at median weekly earnings. The median is the amount which divides the distribution of employees into two equal parts, one having earnings above and the other below that amount. The median weekly earnings of employees in their main job was $740. Median weekly earnings for employees in their main job was $882 for males and $600 for females.

In August 2006, median weekly earnings (in main job) were highest in the:
  • Mining industry ($1,500)
  • Managers occupation group ($1,100)
  • 35-44 year age group ($1,000)


LEAVE ENTITLEMENTS

In August 2006, 73% (or 6,414,100) of the 8,776,900 employees were entitled to either paid holiday leave or paid sick leave, or both, in their main job (referred to as 'employees with leave entitlements').

Full-time employees were more likely than part-time employees to have leave entitlements (86% compared with 43%), and a higher proportion of male employees had leave entitlements than female employees (76% compared with 70%). The industry with the highest proportion of employees with leave entitlements was Public administration and safety (92%), followed by Electricity, gas, water and waste services (90%). The occupation groups with the highest proportion of employees with leave entitlements were Professionals (84%) and Managers (83%).

In August 2006, employees with leave entitlements earned an average of $960 per week in their main job, compared with $539 per week for employees without leave entitlements. The difference in average weekly earnings is due to the underlying characteristics of employees with and without leave entitlements. For example:

Of the 6,414,100 (73%) employees with leave entitlements in August 2006:
  • 17% were part-time employees
  • 45% were female
  • 3% were aged 15-19
  • 25% were aged 35-44
  • 24% were Professionals
  • 8% were Sales workers
  • 8% were Labourers.

Of the 2,362,800 (27%) employees without leave entitlements in August 2006:
  • 63% were part-time employees
  • 53% were female
  • 19% were aged 15-19
  • 18% were aged 35-44
  • 12% were Professionals
  • 19% were Sales workers
  • 20% were Labourers.


LEAVE BENEFITS

In August 2006, 76% of employees were provided with one or more types of paid leave (i.e. holiday, sick, long service or maternity/paternity leave). Employees in the public sector were more likely to have one or more of these leave benefits than those in the private sector (91% compared with 72%), as were full-time employees than part-time employees (88% compared with 47%).

The most commonly reported paid leave benefits were sick leave and holiday leave (both 72%), followed by long service leave (63%) and maternity/paternity leave (39%). The proportion of employees who were provided with all four leave benefits was 35%.

Accommodation and food services was the industry with the highest proportion of employees without leave benefits (61%). Sales workers and Labourers were the occupation groups with the highest proportion of employees without leave benefits (45% and 44% respectively).


SUPERANNUATION COVERAGE

In August 2006, 90% of employees had superannuation provided by their current employer. A higher proportion of full-time employees were provided with superannuation by their current employer than part-time employees (95% and 79% respectively). Employees in the public sector were also more likely to be provided with superannuation by their current employer (98%) than employees in the private sector (89%). It should be noted that under the Superannuation Guarantee Act, employers are obliged to make superannuation contributions on behalf of most employees. There are some exempt employees: for example, employers are not obliged to contribute to superannuation for employees aged less than 18 years who are not working more than 30 hours a week, for employees aged 70 years and over, or for employees who are paid less than $450 in a calendar month.


TRADE UNION MEMBERSHIP

In August 2006, there were 1,786,000 employees who were trade union members in conjunction with their main job, a 6.6% decrease on the 1,911,900 trade union members recorded in August 2005. The proportion of employees who were trade union members also decreased during this period from 22% to 20%.

The proportion of full-time employees who were trade union members was higher than for part-time employees (22% and 16% respectively). A higher proportion of public sector employees were trade union members (43%) than private sector employees (15%).