Glossary of terms
Gross Earnings – remuneration in cash and in kind paid to employees for time worked and for time not worked, such as for annual vacation and before any deductions are made by the employer in respect of taxes, contributions of employees to social security and pension schemes, etc.
Net Earnings – gross earnings after deduction of contributions of employees to social security and taxes such as personal income tax.
Labour Cost – the cost incurred by the employer in the employment of labour. It includes gross earnings, employers’ social security expenditures, other taxes on labour and other items such as costs of training and welfare services.
Obligatory Social Security Contributions – obligatory payments to social, health care, disability, unemployment and similar insurance funds. Contributions by the employee are part of gross earnings and are deducted from them. Contributions by the employer come on top of gross earnings.
Statutory Minimum Monthly Wages – minimum gross earnings per month of full time work as prescribed by law.