Gross and net earnings

Calculated or gross wages and salaries

The calculated gross wage and salary fund is formed by basic wage/salary (monthly wage, post wage), remuneration for time worked or the amount of work done, regular and irregular additional payments and bonuses, earnings related to over-time, payment for the annual and supplementary vacations, additional payment for vacation, holiday allowances, compensation for the vacation not used, sick pay (sick-leave certificate A), payment for public holidays and other days not worked, social security compulsory contributions paid by the employees and personal income tax, as well as labour remuneration subsidies.

Net wages and salaries

Net earnings are calculated by deducting the mandatory social contributions payable by employees and personal income tax from the gross earnings.

The real wage and salary index

The real wage and salary index is calculated by dividing the average net wage and salary index by the consumer price index.

The index below 100 indicates that salaried workers lose their purchasing power as net earnings are falling while consumer prices rising.