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Definition: Hourly earnings

Labour market

Hourly earnings correspond to the quotient between gross earnings and paid hours during the period of reference. Two alternative methods for calculation of hourly earnings were used depending on the availability of data on unpaid hours during the reference period.

Model A used Basis 2  and the gross earnings for the reference period were divided by normal basic hours plus overtime.

Model B used Basis 1 and the gross earnings for the reference period were divided by normal basic hours plus overtime hours minus  hours which were not paid or were paid at reduced rates due to absence.
Source:
Eurostat, "Statistics on the structure and distribution of earnings: Methods and definitions", Data 1995, 1998 Edition, Office for Official Publications of the European Communities, Luxembourg, 1999, p.13
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