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Non-wage labour costs refer to social insurance expenditure and other labour taxes and include:

(a) employers expenditure for legally required insurance programmes and contractual and private benefit plans (retirement and disability pensions, health insurance, income guarantee insurance and sick leave, life and accident insurance, occupational injury and illness compensation, unemployment insurance and family allowances) and, for some economies;

(b) labour taxes, that is, taxes on payrolls or employment or reductions to reflect subsidies - even if they do not finance programmes that benefit workers directly.

Source Publication:
Key Indicators of the Labour Market (KILM): 2001-2002, International Labour Organisation, Geneva, 2002, page 608.

Cross References:
Average hourly compensation cost

Statistical Theme: Labour statistics

Created on Friday, August 9, 2002

Last updated on Monday, March 10, 2003