In the third quarter of 2023
Labour Cost Index in the Autonomous Region of Madeira experienced an increase of 4.2% compared to the same quarter in 2022
In the third quarter of 2023, the Labour Cost Index (LCI) in the Autonomous Region of Madeira recorded a growth of 4.2% compared to the 3rd quarter of 2022. This increase was a result of the combined effects of changes in its two main components:
- Wage costs (per hour actually worked) which increased by 3.8% compared to the same quarter last year.
Wage costs encompass the base salary, regular bonuses and allowances, irregular bonuses and allowances (holiday allowance, Christmas bonus, year-end bonuses/profit sharing, and other irregular bonuses and allowances), payment for overtime work, and payments in kind.
- Other costs (non-wage, also per hour actually worked): which recorded a year-on-year increase of 5.7%.
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 (complementary 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 resulted from both the increase in average costs per worker and the growth in the number of hours actually worked per worker.
At the national level, the value of the index recorded a higher year-on-year increase, at +4.9%: +4.6% in the wage costs component and +6.2% in other costs.
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