Average monthly wage rises 16.3% in real terms between 2008 and 2014

The average monthly wage registered a growth rate of 1.8%, in real terms, in 2014. In 2009, the advance was 4.7%, in real terms; in 2010, 0.6%; in 2011, 2.4%; in 2012, 2.1% and, in 2013, 3.7%. The cumulative average monthly wage increased 16.3% in this period.

Real growth rates have been also noticed in total wages and other compensation in every year under analysis. In 2014, the growth rate was 4,5%, in real terms. In the period between 2008 and 2014, the cumulative growth rate was 50,0%.

As the number of enterprises and other organizations dropped 5.4% in 2014, the cumulative growth rate in the last six years stayed at 10,8%. The total number of employed persons and salaried employed persons increased 0.2% and 0.8% in 2014 and 3.3% and 3.6% in 2013, respectively. As a result, these variables recorded a cumulative rate of 24.0% and 25.7% in the 2008-2014 period, respectively. The number of partners and owners dropped 3.9% in 2014, posting a cumulative growth of 13.4% in the 2008-2014 period.

In 6 years, participation of public administration in salaried persons drops 2.4 percentage points

Between 2008 and 2014, public administration maintained the participation of 0.4% in the number of enterprises and other organizations. However, the participation in the number of salaried employed persons dropped 2.4 p.p., changing from 22.6% in 2008 to 20.2% in 2014. The reduction of 1.5 p.p. in the participation of public administration in wages and other compensation also stood out.

On the other hand, the participation of corporate entities in the Brazilian organizational structure has increased in this period. In six years, the participation of these entities – which was already predominant in 2008 (89,1%) –, in the total number of enterprises and other organizations increased by 1.6 p.p., hitting 90.7% in 2014.

This increase reflected in the economic variables: advance of 2.1 p.p. in the total number of employed persons (from 73.8% to 75.9%); of 2.7 p.p. in the total number of salaried employed persons (from 70.3% to 73.0%); and of 1.8 p.p. in wages and other compensation (from 62.1% to 63.9%).

In 2014, non-profit entities – 8.9% of the enterprises and other organizations – were responsible for 6.5% of the total number of employed persons, 6.8% of the total number of salaried employed persons and 6.3% of wages and other compensation paid in the year. In six years, the total number of these enterprises and other organizations dropped 1.6 p.p., the total number of employed persons retreated 0.2 p.p., the total number of salaried persons dropped 0.3 p.p. and wages and other compensation decreased 0.4 p.p.

Although predominant, corporate entities paid the lowest average monthly wages in 2014 (R$2,030.27). Public administration bodies, on their turn, paid the highest average monthly wages (R$3,282.35), followed by non-profit entities (R$2,181.58).

Organizations with more than 250 persons gather 53.7% of salaried persons

Considering all the enterprises and other organizations in 2014, 87.1% of them employed up to nine persons, 11.1%, between 10 and 49 persons, 1.5%, between 50 and 249 persons and 0.4%, 250 persons and more. Despite the prevalence of small-sized enterprises in the Brazilian corporate framework, organizations employing 250 and more were the biggest contributors to the variables surveyed: total number of employed persons (46.9%), salaried employed persons (53.7%) and wages and other compensation (68.7%).

In terms of wages, the figures were directly related to the size of the organization. The highest average monthly wages were paid by enterprises and other organizations with 250 persons and more (R$2,979.92), while the lowest wages were paid by those employing up to nine persons (R$1,229.90).

Trade absorbs 23,1% of jobs created between 2008 and 2014

Between 2008 and 2014, 9.9 million new jobs were created for salaried persons in enterprises and other formal organizations. Four activities were responsible for 54.8% of this total: 23.1% in trade; repair of motor vehicles and motorcycles, 12.6% in administrative activities and complementary services, 9.9% in construction activities and 9.2% in human health and social services. As a result, the relative contributions of these four activities to the number of salaried employed persons increased in the period under analysis.

For the fifth consecutive year, trade; repair of motor vehicles and motorcycles was the activity that concentrated most salaried employed persons in 2014 (9.3 million persons or 19,3%). This activity also stood out with 2.0 million enterprises and other organizations (40.1%) and with 12.1 million employed persons (21,9%). However, trade ranked in the third position in salaries and other compensation (12.3% or R$181.4 million). Public administration, defense and social security stood out as the biggest contributor to wages and other compensation (23.0% or R$338.2 million).

Activities with lowest average wages employ 32.6% of salaried persons

Considering all the economic activities, the average monthly wage was R$2.301,82 in 2014. The lowest average monthly wages were paid by Housing and food (R$1,133.10), Administrative activities and complementary services (R$1,409.43) and Trade; repair of motor vehicles and motorcycles (R$1,498.91). Although paying the lowest average monthly wages, these activities together absorbed 32,6% of the salaried employed persons.

Among the activities, the highest average monthly wages were paid by Electricity and gas (R$6,460.12), followed by Financial and insurance activities, and related services (R$5,184.60) and mining and quarrying industries (R$4,896.37). Although paying the highest average monthly wages, these activities together absorbed only 2.8% of the salaried employed persons.

More than half (51.6%) of employed persons is in Southeast

In regional terms, 5.1 million enterprises and other organizations in operation in Brazil had 5.6 million local branches. Among them, 2.9 million (51.6%) were in the Southeast Region, as well as 27.9 million employed persons (50.5%), 24.2 million salaried persons (50.2%) and R$ 799.8 billion (54.4%) in wages and other compensation.

The South Region ranked in the second position in terms of number of local branches (22.0%) and in wages and other compensation (16,1%). However, the South Region ranked in third in terms of total number of employed and salaried persons (17.8% and 17.2%, respectively), losing for the Northeast Region, which registered 17.9% and 18.5%, respectively. The Northeast Region ranked in the third position in relation to the number of local branches (15.1%) and wages and other compensation (14.4%).

 Wage gap among men and women declines to 25%

In 2014, 56.5% of the salaried employed persons in the corporate world were men and 43.5%, women. The participation of women rose 1.6% in relation to 2009, when it was 41.9%. In absolute figures, the number of women increased (2.0%) and the number of men declined (-0.1%) between 2013 and 2014, causing the proportion of men in the salaried employed persons to decrease 0.5 p.p. in 2014 and the participation of women to increase in the same proportion.

In terms of wages, men earned, on average, R$2,521.07 and women, R$2,016.63 in 2014. That is to say, women´s wage was equivalent to 80.0% of men´s. Having recorded 25.3% in 2012 and 25.8% in 2013, this difference became 25.0% in 2014.

As to the legal nature of the enterprises, public administration and non-profit entities reported a bigger participation of women in the salaried employed persons. On the other hand, salaried employed men prevailed in corporate entities along the entire period.

Concerning level of schooling in 2014, 19.6% of the salaried employed persons had higher education and 80.4% did not. In relation to the absolute figures in 2013, salaried employed persons with higher education increased 6.9%, whereas those without higher education declined 0.6%. As a result, the relative participation of salaried employed persons with higher education increased 1.1 p.p. In relation to 2009, the increase was of 3.1 p.p.

In terms of wages, the salaried employed persons with higher education earned, on average, R$4,995.08, while those without higher education earned R$1,639.04, or a difference of 204.8%. In regard to legal nature, public administration posted the highest proportion of salaried persons with higher education (43.9%), yet those without higher education prevailed in all categories, hitting 87.9% in the corporate entities and 71.2% in the non-profit entities.