Survey of Employment, Payrolls and Hours (SEPH)

Fixed weighted earnings of employee, index

Fixed weighted earnings refers to the earnings of employees paid by the hour and salaried employees calculated on a standard base of fixed weights. This base holds constant through time the hours paid and employment composition among industries, provinces and territories and remuneration types.

Employee refers to any person receiving pay for services rendered in Canada or for an employer paid absence, and for whom the employer is required to complete a Canada Revenue Agency T4 slip. These persons may work on a full-time, part-time, casual or temporary basis.

In the Survey of Employment, Payroll and Hours, employees are persons working for an employer whose business is included in a group of industries covered by all industrial sectors except those primarily involved in agriculture, fishing and trapping, private household services, religious organisations and the military personnel of the defence services. It also excludes owners or partners of unincorporated businesses and professional practices, the self-employed, unpaid family workers, persons working outside Canada, military personnel, and casual workers for whom a T4 form is not required.

The data for this variable are reported using the following measurements:

• Index using the value of a base year made equal to 100

  The fixed weighted average hourly and weekly earnings index has been constructed to reflect the underlying changes in earnings, with the effects of any changes in hours paid or employment composition removed. These indices are better indicators of the underlying trends in wage rates than the variable-weighted earnings series. It is useful for monitoring inflation due to wages, regardless of structural changes in employment.