The labour cost of companies in Spain stands at 2.668.84 euros per worker and month

According to the last figures provided by the National Statistics Institute (INE in Spain), the labour cost of companies in Spain stands at 2.668.84 euros per worker and month in the fourth quarter of 2017, with a variation rate of 0.7% as compared with the same period of 2016.

These are some of the main conclusions of the last report presented by INE:

– The wage cost per worker per month increases by 0.5%, standing at an average of 2,020.14 euros. On the other hand, other costs increase by 1.5%, standing at 648.70 euros per worker per month.

– During the fourth quarter of 2017, the average agreed working week, considering full-time and part-time together, was 34.3 hours. Of these, 5.3 hours per week are lost, of which 3.7 are due to vacations and holidays.

– The annual rate of the labour cost per effective hour increased 1.2%, as a result of a 0.5% decrease in the number of hours worked.

– On a quarterly rate base and with data adjusted for seasonal and calendar effects, the labour cost per worker increases by 0.2%, while the cost per effective hour worked did so by 0.5%.

– According to seasonal and calendar effects adjusted results, the labour cost per worker increases by 0.7% in the fourth quarter of 2017 as compared with the same period of 2016. The labour cost per effective hour increased by 0.6%.

Social security contributions

Of the total cost per worker per month incurred by an employer for the use of the labour factor, 2,020.14 euros corresponded to wages and 596.04 euros to compulsory Social Security contributions. The rest corresponded to compensations, social benefits, etc.

The wage cost, which includes base salary, wage supplements, overtime payments, extraordinary payments and delayed payments, measured in gross terms, grew by 0.5% in the annual rate, going from 2,010.73 to 2,020.14 euros per worker per month. If the variable factor is excluded from wages (extraordinary and delayed payments), the ordinary wage cost is obtained, which increased by 0.3%.

Other costs (non-wage costs) increased by 1.5%. Their main component, compulsory Social Security contributions, increased by 1.2%. Within the variation in non-wage payments, worth noting was the increase in direct social benefits and the decrease in other non-wage payments (end of contract payouts, compensatory payments, small tools, work clothes, personnel selection, etc.).