11-08-2023 - In the 2nd quarter of 2023, the Labour Cost Index (ICT) in the Autonomous Region of Madeira increased by 3.5% compared to the same quarter of the previous year

In the 2^nd quarter of 2023

Labour Cost Index (ICT) in the Autonomous Region of Madeira increased by 3.5% compared to the same quarter of the previous year

With the current publication, the Regional Directorate of Statistics of Madeira (DREM) provides the time series of the Labour Cost Index, both quarterly and annually, recalculated for the year 2020 (2020=100), in accordance with the procedure adopted by Eurostat for the Labour Cost Index, whenever more up-to-date information from the quadrennial Labour Cost Survey is made available.

In the 2^nd quarter of 2023, the ICT (adjusted for working days) in the Autonomous Region of Madeira recorded a growth of 3.5% compared to the 2^nd quarter of 2022. This increase resulted from the combined effect of changes in its two main components:

Wage costs (per hour actually worked), which increased by 3.2% compared to the same quarter of the previous year.

Wage costs include base salary, regular bonuses and allowances, irregular bonuses and allowances (holiday allowance, Christmas bonus, year-end bonuses/profit sharing, other irregular bonuses and allowances), payment for overtime work, and payment in kind.

Other costs (non-wage, also per hour worked), which saw a year-on-year increase of 4.8%.

Other costs include severance payments, legal obligations borne by the employer (employer contribution to Social Security, work accident and occupational disease insurance), conventional, contractual, and optional obligations (supplementary pension/disability benefits; health insurance; life/personal accident insurance; social benefits paid directly to the worker in case of absence due to illness).

The year-on-year evolution of the Labour Cost Index in the Autonomous Region of Madeira was the result of a combined effect of the increase in average costs per worker, as well as the increase in the number of hours actually worked per worker.

At the national level, the value of that index recorded a similar year-on-year increase of +3.5%: +3.3% in the wage cost component and +4.6% in the other costs.