Quarterly Labour Cost Survey (QLCS) in Spain (first quarter 2018): the labour cost of companies stands at 2,497.91 euros per worker
Spanish Statistical Office (INE) has just published the Quaterly Labour Cost Survey (QLCS) with the figures corresponding to the first quarter of 2018. These are some of the main conclusions:
– The labour cost of companies stands at 2,497.91 euros per worker per month in the first quarter of 2018, with a variation rate of 0.7% as compared with the same period of 2017.
– The wage cost per worker per month increases by 0.8%, standing at an average of 1,844.24 euros. On the other hand, other costs increase by 0.2%, standing at 653.67 euros per worker per month.
– During the first quarter of 2018, the average agreed working week, considering full-time and part-time together, was 34.2 hours. Of these, 4.1 hours per week are lost, of which 2.4 are due to vacations and holidays.
– The annual rate of the labour cost per effective hour increased 3.8%, as a result of the lower number of hours worked. This was because Holy Week took place this year in the first quarter, whereas in 2017 it was held in the second quarter.
– In quarterly rate, and with data adjusted for seasonal and calendar effects, the labour cost per worker does not vary with respect to the previous quarter. The cost per effective hour increased by 0.2%.
– According to seasonal and calendar effects adjusted results, the labour cost per worker increased by 0.6% in the first quarter of 2018 as compared with the same period of 2017. The labour cost per effective hour increased by 0.8%.
– In the first quarter of 2018, the number of vacancies was 101,512. 87.8% were in the Services sector.
Labour cost by components
The labour cost per worker per month reached 2,497.91 euros in the first quarter of 2018, indicating an increase of 0.7% as compared with the same period of the previous year.
Of the total cost per worker and month, incurred by an employer for the use of the labour factor, 1,844.24 euros corresponded to wages and 594.13 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 0.8% in the annual rate, going from 1,829.13 to 1,844.24 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 0.7%.
Other costs (non-wage costs) increased by 0.2%. Their main component, compulsory Social Security contributions, increased by 0.7%. Within the variation in non-wage payments, noteworthy was the decrease in severance payments and other non-wage payments (end-ofcontract indemnities, compensatory payments, small tools, work clothes, personnel selection, etc.).
The labour cost per hour increased by 3.8%. This increase, higher than the increase in the cost per worker, was due to a 3.0% decrease in the number of hours actually worked due to the effect of Holy Week. After adjusting this and the calendar effect, the estimated increase of the cost per hour is 0.8%.
Click here to access the full figures published by INE. And remember that if you are thinking about set up a company in Spain, or if you have workers in Spain, don´t hesitate to contact our team of experts.
