In 2022
Labour Cost Index increased by 2.7% over the previous year
The Labour Cost Index (working days adjusted) increased by 1.7% in the 4th quarter of 2022, compared with the same period of 2021.
The two main labour cost items are “wage costs” and “other costs”.
Wage costs (per hour effectively worked) increased by 1.8% compared to the same quarter of the previous year.
It includes:
- Base wage
- Regular bonuses and allowances
- Irregular bonuses and allowances (holiday bonus, Christmas bonus, end-of-year bonuses/distribution of profits, other irregular bonuses and allowances)
- Payment of overtime
- Payment in kind
Other costs (non-wage, also per hour effectively worked) registered a year-on-year increase of 1.6%.
It includes:
- Severance payment
- Employers’ legal costs (social security contributions, insurance against accidents and occupational disease)
- Collectively agreed, contractual and voluntary costs (supplementary pension/invalidity benefit, health insurance, life/personal accident insurance, and social benefits paid directly to employees in case of absence on account of sickness)
At the country level, the index increased by 1.4% year-on-year. “Wage costs” went up by 1.4% and the “other costs” by 1.3%.
The annual data show that in 2022 the regional Labour Cost Index (LCI) increased by 2.7% when compared to 2021. This increase was determined by the positive rate of change in “wage costs” (+2.8%) and in “other costs” (+2.7%). In Portugal, the LCI increased by 3.2% in 2022, resulting from the increases observed in “wage costs” and in “other costs”, of 3.0% and 4.0%, respectively.
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