Salary rate

economic-dictionary

The salary rate represents the weight or proportion of employed workers in the total employment of a territory.

It is calculated as the quotient between the number of wage earners (As) in a territory and the employed population (PO):

Understanding as wage earners (As) all those people who are working and receive compensation in the form of salary for the work they perform. That is, they obtain a salary on a regular basis for their work in an economic activity.

For its part, the employed population (PO) is made up of all those economic agents who declare themselves directly or indirectly, by registering in an administrative register, in a situation of carrying out economic activity. Either this activity remunerated through a regular salary or through a profit derived from its activity.

In recent decades the wage rate has grown in all developed countries thanks to the joint action of a series of determining factors. These variables include the process of desegregation, industrialization and outsourcing. In addition, the advancement of public employment has also been key.

In each country there is usually an institution in charge of collecting data on the number of wage earners and, in general, on the employed population. In Spain, it is the National Institute of Statistics (INE) that is also in charge of collecting all the moments related to employment and the economy in general in Spanish territory.

Example of salary rate

Let's see an example that allows us to understand how to calculate the salary rate taking into account that:

  • Employed population (PO): 18,800,000
  • Number of employees (As): 15,700,000

Applying the formula set out after defining the salary rate, we find that:

The result of the previous calculation is 83.5%, which means that out of every 100 people who work, approximately 83 of them have regular remuneration in the form of salary.

Activity rate

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