Annual labour costs increased in 2011

INEThe National Institute of Statistics (INE) has released figures showing the annual costs per worker increased by 1.1% in 2011, compared to the previous year.

The INE summarise the main points as follows:

  • The total cost per worker, in gross terms, is 31,170.06 euros during the year 2011, for a 1.1% increase over the previous year.
  • The net cost is 30,886.60 euros per worker, after deducting 283.46 euros for subsidies and deductions received by the Public Administrations in order to promote employment and vocational training.
  • 73.1% of the total cost is earmarked for wages (22,775.76 euros per worker) and 22.0% to obligatory Social Security contributions (6,872.70 euros per worker).
  • Of the remaining items comprising the cost, 556.88 annual euros per worker are for social benefits, 323.40 for expenses from work, 530.37 euros correspond to compensation for dismissal and 110.95 to vocational training.
  • 95.7% of the centres, representing 89.5% of workers, regulate their labour relations through collective agreements.

Annual labour cost per worker

The labour cost per worker, in gross terms, was 31,170.06 euros in 2011, according to the results of the Annual Labour Cost Survey (ALCS), which completes the results obtained quarterly from the Quarterly Labour Cost Survey (QLCS). This cost represented a 1.1% increase as compared with the year 2010. After subtracting the subsidies and deductions received by the Public Administrations from this figure, a net cost of 30,886.60 euros was obtained, also with interannual growth of 1.1%.

Salaries and wages plus contributions to Social Security, together, accounted for 95.1% of the gross cost.

In addition to wages and contributions, 556.88 annual euros per worker were for social benefits (voluntary contributions to insurance and pension plans, complementary benefits from Social Security and expenses of a social nature), 323.40 for other expenses from work (end of contract payouts, small tools and work clothes, travel to the workplace, selection of personnel, etc.), 530.37 euros corresponded to compensation for dismissal, and 110.95 euros to vocational training.

Labour cost by economic activity

Industry was the economic sector with the greatest labour costs, reaching 35,251.32 euros per worker in 2011, that is, 1.7% more than the previous year. Worth noting was the increase in wage costs (2.8%), as well as the decrease in non-wage costs (1.5%).

The Construction sector experienced the greatest growth in net cost (2.6%), due to the increase in both wage costs (2.5%) and non-wage costs (2.8%).

In the Services sector, the increase in net cost was 1.0%. This sector recorded the least growth in wage costs (0.5%), and a 2.3% growth in non-wage costs.

The differences between the labour cost per worker were noteworthy, according to the different activities of the CNAE-09 classification of activities, with a broad spectrum ranging from 18,845.19 gross annual euros per worker in Accommodation, to 77,034.69 euros per wage earner in the Supply of electrical energy, gas, steam and air conditioning section.

You can see the full report here: Annual Labour Costs Survey – 2011