In the third quarter of 2021
Labour Cost Index increased by 5.2% year-on-year
The Labour Cost Index-LCI (working days adjusted ) increased by 5.2%, in the Autonomous Region of Madeira, in the 3rd quarter of 2021, compared with the same period of 2020.
The two main labour cost items are “wage costs” and “other costs”.
Wage costs (per hour effectively worked) increased by 4.8% 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 paid bonuses and allowances)
- Payment of overtime work
- Payment in kind
Other costs (non-wage, also per hour effectively worked) registered a year-on-year increase of 6.7%.
It includes:
- Severance payment
- Employers’ legal costs (social security contributions, insurance for accidents at work and occupational illnesses)
- 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 a national level, the value of that index registered a lower year-on-year increase of 3.8%: +3.4% in the wage cost component and +5.3% in other costs.
Both at a national and regional level, the increase in the ICT resulted from the increase in salary costs (base salary, holiday bonus and regular bonuses and allowances), as well as from the increase in employer contributions (other costs) due to the progressive decrease in the number of enterprises covered by the simplified layoff regime.
