In the 3rd quarter of 2024
Labour Cost Index in the Autonomous Region of Madeira increased by 8.8% compared to the same quarter of 2023
In the 3rd quarter of 2024, the Labour Cost Index (LCI) in the Autonomous Region of Madeira (ARM) increased by 8.8% compared to the same quarter of 2023. This increase resulted from the combined effect of changes in its two main components:
- Wage costs(per hour worked), which increased by 8.8% compared to the same quarter last year.
Wage costs include base salary, regular bonuses and allowances, irregular bonuses and allowances (holiday bonus, Christmas bonus, end-of-year bonuses/profit sharing, other irregular bonuses and allowances), overtime pay, and payment in kind.
- Other costs(non-wage, also per hour worked), which also recorded a year-on-year increase of 8.8%.
Other costs include severance payments, legal charges borne by the employer (employer's contribution to Social Security, work accident and occupational disease insurance), conventional, contractual, and optional charges (supplementary retirement/disability benefits, health insurance, life/personal accident insurance, social benefits paid directly to the worker in case of illness absence).
The year-on-year evolution of the Labour Cost Index in the ARM resulted from the combined effect of the increase in average costs per worker and the increase in the number of hours worked per worker.
At the national level, the value of the Index recorded a higher year-on-year increase of +8.4%: +8.4% in wage costs and +8.2% in other costs.
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