Average wage increased 1.2% in Q1

INEIt’s not all bad then – the average salary in Spain increased by 1.2% during the first quarter to an average of 1,841.89€ per month.

This is according to figures released by the National Institute of Statistics who have released their Q1 analysis of labour costs throughout Spain.

Their press releases summarises the results as follows:

  • The labour cost of companies increases 1.1% in the first quarter of 2012, as compared with the same period of 2011, standing at 2,515.04 euros.
  • The wage cost per worker per month increases 1.2%, reaching 1,841.89 euros on average. In turn, other costs increase 0.9%, standing at 673.15 euros per worker per month.
  • The working day decreases 0.3%. This quarter, 3.3 working hours per week are lost on average, almost half of which are due to holidays taken and public holidays.
  • The labour cost per effective hour worked increases 1.4%.

Labour cost by component 

The labour cost per worker per month reached 2,515.04 euros for the first quarter of 2012, indicating an increase of 1.1%, as compared with the same period of 2011.

Of the total cost per worker per month incurred by an employer for the use of the work factor, 1,841.89 euros corresponded to wages and 574.23 euros to obligatory Social Security contributions. The remainder corresponded to compensation for dismissal, social benefits, etc. Therefore, the main cause of the growth in total cost is its wage component.

The wage cost, which comprised base salary, wage supplements, overtime payments, extraordinary payments and delayed payments, measured in gross terms, increased 1.2% in interannual rate and stands from 1,819.62 to 1,841.89 euros per worker per month. If the variable factor is excluded from wages (extraordinary and delayed payments), the ordinary wage cost is obtained, which increased 1.2%.

Other costs (non-wage costs) increased 0.9%. Their main component, obligatory Social Security contributions, increased 0.5%. Within non-wage payments, which increased 4.1%, worth noting the increase of compensation for dismissal, the partial unemployment and other non-wage payment (currency devaluation, wear and tear of tools, acquisition of work clothes, travel expenses and allowances, distance allowance and city transport, relocation indemnities, contract termination indemnities, etc.)

The labour cost per hour increased 1.4%. This increase, greater than that of the cost per worker, was due to a decrease in the number of hours effectively worked.

Labour cost by economic sector

Industry has the highest increase in total labour cost. This sector presented the greatest increases in the total wage cost and in other costs, highlighting compensation for dismissal.

Construction follows the industry for growth of the various components of labour cost. Regarding the other costs, in this sector worth the increases in compensation for dismissal and direct social benefits.

Services presented the lowest total wage cost increase and its components. Of note was the drop in compensation for dismissal and the increase in other non-wage payment.

Working time

During the first quarter of 2012, the average agreed working week, considering full-time and part-time together, was 34.7 hours. Of these, an average of 3.3 hours were lost per week, most of which were due to holidays taken and public holidays.

After adding overtime and subtracting hours lost, the working week was reduced to 31.6 effective hours worked.

According to the type of working day, the wage difference between full and part-time workers was 4.61 euros per hour (13.93 euros/hour for full-time and 9.32 euros/hour for parttime).

Regarding the time worked, full-time workers practically doubled the effective hours worked by part-time workers (33.0 hours for full-time workers as compared with 17.3 hours for parttime workers).

You can download the complete report here: Quarterly Labour Cost Survey – Q1 2012