In the second quarter of 2022
Labour Cost Index increased by 6.9%, in the Autonomous Region of Madeira, when compared with the same quarter of the previous year
The Labour Cost Index (working days adjusted) increased by 6.9% in the 2nd 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 6.9% 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 decrease of 6.6%.
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 5.7% year-on-year. “Wage costs” went up by 5.6% and the “other costs” by 6.3%.
At a national and regional level, the year-on-year change in the LCI was due to the combined effect of the increase in the average cost per worker and the decrease in the number of hours actually worked per worker. It should be noted that in the previous quarter there had been a significant increase in the number of hours effectively worked per worker in most activities, mainly explained by the total or partial reopening, of companies that were closed by legislative determination or due to the reduction of the normal working period due to the decreased turnover.
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