Distribution of earnings changes, Q1 2024
The dynamic rise in earnings continued in Q1 2024. Average gross earnings for full-time employees increased by 14.2% in nominal terms over a year.1 The 15% and 10% minimum wage and guaranteed minimum wage increases implemented at the end of last year, as well as pre-scheduled wage increases in public services (measures in public education and vocational training in particular) and announced wage increases in large public enterprises and commercial chains, played a key role in this. In addition, the upward impact of additional labour demand on wages was still significant in some sectors.
There were significant differences behind the growth at national economy level.2 Almost 90% of full-time job holders saw their gross earnings rise compared to the same period last year; one in two workers saw their earnings rise by between 5.0% and 24.9%. Mainly due to more subdued earnings growth in the entrepreneurial sector, the share of those experiencing an earnings growth of at least 15% was slightly lower (by 2.7 percentage points) than in Q1 2023.
The change in earnings is not only driven by the change in the basic wage, but is also significantly influenced by, for example, the change in the direct remuneration, the amount of allowances, bonuses and premiums and their timing or non-payment, depending on the length of time worked. In addition, changes in workers' responsibilities, jobs and employers also affects their earnings.
In Q1 2024, the distribution of the change in earnings was also affected by a significant increase in regular earnings, a rather moderate increase in non-regular earnings (premiums, bonuses, 13th and additional monthly payments) and a decrease in the number of hours worked.
Sectoral differences are also marked in the distribution of earnings changes. The most dynamic increase, affecting the most workers was in education, thanks to an average rise of 32% in teachers' wages in January. Water supply, waste management and health and social work also saw a high proportion of employees with earnings growth of over 25%, boosted by wage increases for health professionals and water management organisations. The subdued gross earnings growth in manufacturing is underpinned by the fact that this sector had the highest proportion of workers with decreasing earnings and one of the lowest proportions of workers with wage increases above 15%.
As a result of a significant rise in nominal earnings and a marked fall in inflation, the share of people whose net earnings fell in real terms decreased from 75.1% to 20% in a year.
Expected next release of data for Q1 - Q2 2024: September 2024