“In 2021, the Labour Cost Index (ICT) increased by 2.5 percent, corresponding to increases of 1.9 percent in salary costs and 4.7 percent in other costs”, advances the statistics office.
According to INE, the rise in non-wage costs is explained, at least, in part by the “increase in employer contributions resulting from the progressive reduction of companies covered by the simplified lay-off regime in the private sector of the economy”. This is because, under this extraordinary support for the maintenance of jobs, employers are exempt from paying the single social tax.
That is, since, alongside the recovery of the economy, fewer companies have resorted to the simplified lay-off - which is only available to employers who are forced to close because of the pandemic -, the total amount paid by employers to Social Security has grown.
In comparison, in 2020, ICT rose 8.6 percent, with salary costs soaring 9.2 percent and other costs 6.2 percent. This means that in 2021 there was a deceleration.