According to the Central Register of Enterprises (CEMPRE), of IBGE, 5.7 million companies and other organizations spent R$ 444.3 billion in salaries and compensations in 2005, R$ 82.5 billion more than in 2000.

According to the Central Register of Enterprises (CEMPRE), of IBGE, 5.7 million companies and other organizations¹  spent R$ 444.3 billion in salaries and compensations  in 2005, R$ 82.5 billion  more than in 2000.  The amount equals to one monthly average salary of R$ 1,060.48, with real growth of 1.5 percentage points compared to the average of 2004 (R$ 1,044.95² ). However, calculated in average minimum salaries³ , the same average monthly salary fell from 5.0 minimum salaries, in 2000, to 3.7 in 2005.  In the same period, companies presented the major increase of total employed persons (5.5%), followed by public administration (5.1%) and non-profitable organizations (4.9%).  In 2000, 30.8% of the salaried persons in companies received up to two minimum salaries.  Five years later, this percentage was 45.2%, a growth of 14.4%.   On the other hand, the percentage of those who gained more than eight minimum salaries fell from 14.7% to 8.4%.

In 2005, CEMPRE recorded 5.7 million companies and other active organizations of the formal segment of the economy, a growth of 5.5% compared to 2004.  Among the total, 89.9% were companies, 0.4% public administration organizations and 9.7% non-profitable organizations. The overall salaries received amounted to R$ 444.3 billion, equivalent to one average monthly salary of R$ 1,060.48 and a real increase of 1.5% compared to 2004 (R$ 1,044.95).  However, when the change of the average monthly salary from 2000 to 2005 was considered, in average minimum salaries, a decrease from 5.0 to 3.7 minimum salaries was registered (-26.0%).  The cause of this reduction may be the small diminishment of the real average salary and the real growth of the minimum salary. According to CEMPRE, the salaried persons employed in companies received, on the average, 3.4 minimum salaries in 2005, being that 41.0% received values above this level, and 49.2% gained between 1.7 and 2.8 salaries.

The trend of reduction of the monthly average salary calculated in minimum average salaries was observed in all the sections of the National Classification of Economic Activities⁴  (CNAE), specially in Other personal, social and collective services (-35.0%); Financial mediation, insurance, complementary social security and related services (-32.7%), Construction (-28.4%), Transportation, storage and communication (-26.4%); and Education (-26.2%). 

Four activities concentrated 71.9% of the total employed persons in 2005

Among the total sections of CNAE, four answered for 71.9% of the total employed persons in 2005: Trade, repair of automotive vehicles and of personal and domestic objects (23.3%); Manufacturing Industries (18.4%), Public administration, defense and social security (18.4%); and Real estate activities, rents and services rendered to enterprises (11.9%). Together, these activities answered for 60.5% of the formal salaried persons and 60.4% of salaries and other compensations. In Trade, all the activities investigated showed results of concentration of employed persons for the twelve major companies below 40%.  The activity with major percentage of employment was Wholesale trade of agriculture raw material, living animals and food products for animals: the four major companies (0.04% of the total of the group) concentrated 23.4% of the total employed persons.  The twelve major companies employed 35.6% of the total persons.  In services, the highlights were the groups, regular air, interurban railway and pipeline transportation. For all these activities, the four major companies concentrated 84.3% of the employed persons. Increasing this universe to the twelve major companies, this percentage reaches 94.3% of the total employed persons. In mining and quarrying stood out the groups of petroleum extraction and natural gas and iron ore extraction, in which the four major companies concentrated respectively, 60.3% and 88.5% of the total employed persons. Considering the groups of eight and ten major companies of iron ore extraction, the index of concentration reaches respectively 91.5% and 93.9% of the total employed persons.

Salaries in companies fell above the average of 2005 

Companies paid R$ 279.6 billion of overall total wages (R$ 444.3 billion) and the monthly average salary fell above the average (-5.7%), resulting in R$ 975.52.  The public administration had the lowest reduction (-1.2%), with R$ 1,313.06, while non-profitable organizations had a monthly average salary of R$ 1,025.57 (-1.5%).  Companies, public administration organizations and non-profitable organizations employed 39.6 million persons, 5.3% more than in the previous year (37.6 million). Among this total, 81.4% were salaried persons and 18.6% were partners or owners of the enterprise, a growth of, respectively, 6.2% and 1.8% compared to 2004.  The companies concentrated 73.4% of the total employed persons, while the public administration employed 9.6% and the non-profitable organizations 7.0%.
The major increase of total employed persons between 2004 and 2005 also was registered in companies (5.5%), followed closely by public administration organizations (5.1%) and non-profitable organizations (4.9%).  Companies paid R$ 279.6 billion of the total overall wages, 15.5% of this value was spent in companies up to 19 employed persons. The ones with more than 100 employed persons represented 0.5% of the total and paid 68.3% of this value, while the ones in the intermediate level (20 to 99 persons), answered for 16.2% of the total paid wages. Companies up to 100 employed persons employed 49.2% of the salaried persons, and paid 1/3 of the total overall wages.  Companies with more than 100 employees employed 50.8% of the salaried persons and paid 2/3 of the total average wages.

Employment in São Paulo was higher than in all the rest of the Southeast Region

In 2005, the monthly average salary in Brazil was 3.7 minimum salaries, considering the total paid salaries by companies and other constant active organizations of CEMPRE.  The states with higher monthly average salary were: Federal District (6.8 minimum salaries); São Paulo (4.5); Rio de Janeiro (4.3); Amapá, (4.0); and Roraima (3.9).  The Federative Units with the lowest monthly average salaries (in number of minimum salaries) were all located in the Northeast Region: Alagoas (2.1), Paraíba (2.4), Piauí (2.4), Pernambuco (2.6), Maranhão (2.5) and Ceará (2.5).  The regional distribution of employed persons showed that São Paulo had the major participation, with 30.1%, above all the rest of the Southeast Region (22.1%), followed by the South (18.5%); Northeast (16.8%); Central West (7.8%); and North Regions (4.7%) .  In São Paulo also occurred the major participation of salaried employed persons (29.7%) and in salaries and other compensations (36.4%). The capitals with major participation of salaried employed persons in comparison with the states of origin were: Boa Vista (89.2%); Manaus (87.2%); Macapá (84.3%); and Rio Branco (81.5%), all located in the North Region.   On the other hand, the lowest participations were registered in Florianópolis (14.3%); Porto Alegre (27.0%); and Vitória (29.7%).

The activity Public administration, defense and social security had the major participations in the North, Northeast and Central West Regions, with 39.0%, 34.4%, and 33.0%, respectively.  The manufacturing industries had a high concentration of employed persons in the South and in the Southeast Regions.  The two regions answered together, for 79.0% of the national total, especially São Paulo, with 35.6% of the total.  The participation of the South Region was 26.0% and the other states of the Southeast, excluding São Paulo, had 17.4%.  The North and Central West Regions had low participation, with 3.6% and 4.7%, respectively.

North Region had more employed persons and Northeast Region lowest monthly salaries

In 2005, the analysis of the municipalities of capitals in relation to salaried employed persons showed that those which had the major participation of salaried employed persons in relation to the state they belonged were in the North Region: Boa Vista, Manaus, Macapá and Rio Branco.  On the other hand, the municipalities of capitals which had the lowest participation were Florianópolis, Porto Alegre and Vitória.
In relation to the monthly average salary in minimum salaries the highlights were Federal District (6.8 minimum wages); São Paulo (4.5); Rio de Janeiro (4.3); Amapá (4.0); and Roraima (3.9).  The lowest monthly average salaries, also in minimum salaries, were located in the states of the Northeast Region, such as Alagoas (2.1); Piauí (2.4); Paraíba (2.4); Ceará (2.5); Maranhão (2.5); and Pernambuco (2.6).

Notes

1 - Public administration organizations and non-profitable organizations.

2 - The IPCA (Extended National Consumer Price Index) was used as the index of the average salary of the year of 2004, having as reference the year of 2005.  The variation accumulated in the period was 5.7%.

3 - Average minimum salary: R$ 147.25 in 2000; R $172.75 in 2001; R$ 195.00 in 2002; R$ 230.00 in 2003; R$ 253.33 in 2004; and, R$ 286.67 in 2005.  Calculated by the sum of all the monthly values of the minimum salary during the year and afterwards divided by twelve.

4 - It is the instrument of national standardizing of the codes of economic activity and of the criteria of classification used by several departments of the Tributary Administration of the country.  It results from a combined work of the three spheres of the government under the coordination of the Secretary of Federal Revenue and the technical orientation of the IBGE.