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Definition: Income from work

Social statistics

Income from work consists of:
 - Wages and salaries  
      ... include normal earnings from work as an employee or an apprentice and extra earnings for overtime work, commissions or tips. Additional payments such as 13th and 14th months salary, holiday pay or allowance, profit sharing bonus, other lump-sum payments and company shares are covered as well. 
 - Self-employment income  
      ... , such as own business, profession or farm is collected as the pre-tax profit, that is the profit after deducting all expenses and wages paid, but before deducting tax or money withdrawn for private use. This pre-tax profit is converted into net profit on the basis of a net/gross ratio (The net/gross ratio is estimated using a simple statistical procedure on the basis of reported ratios for income from employment, for which both the net and the gross amounts are solicited.)
Source:
Eurostat, "European Community Household Panel (ECHP) - Selected indicators from the 1995 wave", Office for Official Publications of the European Communities, Luxembourg, 1999
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