RDP 2000-08: Nominal Wage Rigidity in Australia Appendix A: Data

Mercer Cullen Egan Dell compile the Quarterly Salary Review and other surveys from the payroll records of approximately 700 firms from 24 industries across Australia. The contributing firms do not form a stratified random sample, but are those who subscribe to salary advice from MCED.

All survey contributors receive a set of benchmark position descriptions to which they match their own employees. If at least 80 per cent of the duties correspond to the benchmark positions, the salary information is included in the survey. Remuneration data for non-residents and contractors are not included. Salary information is separately identified for all employees and same incumbents, who have remained in a given job between survey periods.

Information is collected about the following forms of salary:

Base salary: annual salary excluding allowances or additional payments.

Total cash: base salary plus vehicle and entertainment allowances; parking; annual leave loading; private travel; superannuation (salary sacrifice); other cash payments.

Employment cost: total cash plus the remuneration cost of company cars; company contributions to superannuation; loan benefits; the cost of Fringe Benefits Tax.

Total employee reward: employment cost plus actual bonus, commission or incentive payments.

In this paper, we use base salary as the measure of wages and employment cost as the measure of total pay. We separately identify performance pay by comparing employment cost with total employee reward.