Increase in incidental wage 0.9 percent in 2004

The increase in wages over and above the increase negotiated in the collective agreements was 0.9 percent in 2004. This increase in incidental wages was slightly smaller than in 2003. Wages rose relatively strongly in the financial institutions and business services sectors.

Development in annual incidental wage

The increase in incidental wage, the rise in average annual wages as a result of promotion, allowances, and other bonuses not covered in the collective agreements, was the same as the average for the previous eight years. In that period there were two extreme incidental increases: in 1998 with an increase of 1.6 percent, and in 2002, with an increase of only 0.1 percent.

Increase highest in commercial services

The increase in incidental wage was largest in commercial services sector in 2004. In 2002 the incidental component decreased in this sector, but subsequently started to rise again. During the period of high economic growth in 1996–2001 commercial services often had the largest increases in incidental wages.
In manufacturing and construction the increase was 0.6 percent in 2004, about average for the period 1996-2003. In non-commercial services incidental wages rose by only 0.3 percent, while the average increase in the period 1996-2003 was as much as 0.7 percent.

Increase in incidental wage by sector of industry

Incidental wage falls in hotels and restaurants

Employees working at financial institutions received the highest increase in 2004: 2.7 percent. In business services, too, the increase was relatively large. Hotels and restaurants, on the other hand, paid lower incidental wages.
The drop in this sector can be explained by a sharp drop in the number of employees who remain with the same employer for longer than one and a half years. Employees employed for shorter periods do not receive a complete holiday allowance, which is one of the main special allowances, and thus has a substantial effect on the increase in incidental wages.

Increase in incidental wage by sector of industry, 2004

Antwan Vos