Continuous PNAD 2018: 10% of population concentrate 43.1% of Brazilian wage bill

October 16, 2019 10h00 AM | Last Updated: October 18, 2019 12h42 PM

The Gini Index of the per capita household real monthly average earnings, which varies from zero (equality) to one (maximum inequality), was estimated at 0.545 in 2018. Between 2012 and 2015, the Gini Index tended to decrease (from 0.540 to 0.524), which was reversed from 2016 onwards, when the index increased to 0.537, hitting 0.545 in 2018.

Whenever calculated for the monthly average earnings received from all jobs, the Gini Index was 0.508 in 2012, falling down to 0.494 in 2015 and increasing once again up to 0.509 in 2018.

In 2018, the real monthly average earnings of the 1% of the population with the highest earnings was R$27,744, which corresponded to 33.8 times the earnings of those 50% of the population with the lowest earnings (R$820).

This information is part of the Earnings from All Sources module of the Continuous National Household Sample Survey. The support material is on the right side of this page.

The survey also unveiled that the per capita household real monthly average wage bill, which was R$264.9 billion in 2017, increased to R$277.7 billion in 2018. The 10% with the lowest earnings in the population had a share of 0.8% of the wage bill, whereas the 10% with the highest earnings held 43.1% of the total.

The real average earnings from all sources increased nearly 5.1% between 2012 (R$2,072) and 2014 (R$2,177), then dropped 3.1% in 2015 (R$2,110). It remained stable in 2016 and 2017 and rose 2.8% to R$2,166 in 2018.

The real monthly average earnings from all jobs – computed for persons aged 14 years and over employed in the reference week –, which was R$2,133 in 2012, hit R$2,279 in 2014 , fell 4.1% in 2015 and remained almost stable in the two subsequent years, then hit R$2,234 in 2018. The 2018 indicator represented a real growth of 4.7% over 2012.

The real monthly wage bill from all jobs of the employed population was approximately R$201.3 billion in 2018, 9.5% above the value registered in 2012.

Between 2012 (R$1,390) and 2015 (R$1,416), the real monthly average earnings from other sources (retirements, pensions, rentals, cash transfer programs, etc.) accrued a gain of 1.9%. It recorded a loss of 1.1% in 2016 (R$1,400), which was reversed in the two subsequent years – by expanding 2.4% and 3.2%, respectively – hitting an average value of R$1,479 in 2018. In regional terms, the Northeast (R$971) posted the smallest average, whereas the Southeast (R$1,839), the biggest one in 2018.

Among the categories that comprise the earnings from other sources in 2018, retirement or pension was the item with the highest average value (R$1,872), highlighting the Central-West with the biggest value (R$2,191) and the Northeast, with the smallest one (R$1,473). The growth of this earnings category was of 3.3% between 2017 and 2018 and of 7.3% in relation to 2012.

The percentage of households assisted by the Bolsa Família dropped from 15.9% in 2012 to 13.7% in 2018.

Average earnings of the 1% richer is 33.8 times the earnings of the 50% poorer

By dividing the population into percentage classes, according to the average earnings, it was noticed that those 30% of the population with the lowest earnings changed negatively between 2017 and 2018; on the other hand, the classes of earnings from 30% onwards registered gains from 0.1% (30-40% group) to 8.4% (1% with the highest earnings).

The real monthly average earnings of the 1% of the population with the highest earnings was R$27,744, which corresponded to 33.8 times the earnings of those 50% of the population with the lowest earnings (R$820).

Gini Index of monthly average earnings from labor reaches 0.509 in 2018

The Gini Index is an indicator that measures economic distribution, concentration and inequality and varies from 0 (perfect equality) up to 1 (maximum concentration and inequality). When calculated for the monthly average earnings received from all jobs, it hit 0.509 in 2018.                                                                  The index had dropped between 2012 (0.508) and 2015 (0.494).

The South (0.448) and Central-West (0.486) regions recorded the lowest indexes and, in the Northeast, it reached 0.520. Between 2017 and 2018, this indicator rose in the North, Southeast and South, whereas it retracted in the Northeast and Central-West. From 2015 to 2018, the upward trend of the indicator was sharper in the North (from 0.490 to 0.517) and in the Southeast (from 0.483 to 0.508).

One tenth of the population concentrates 43.1% of the per capita household real monthly average wage bill

The per capita household real monthly average wage bill, which was R$264.9 billion in 2017, reached R$277.7 billion in 2018. The 10% with the lowest earnings in the population had a share of 0.8% of the wage bill, whereas the 10% with the highest earnings held 43.1% of the total.

In addition, those 10% with the highest earnings held a parcel of the wage bill above that of the 80% of the population with the lowest earnings (41.2%).

Among the regions, the Southeast posted the biggest wage bill in Brazil (R$143.7 billion), being that value above the sum of the other regional wage bills. The South (R$47.7 billion) and Northeast (R$46.1 billion) regions produced nearly 1/3 each of the wage bill of the Southeast Region. The North (R$15.8 billion) and Central-West (R$24.4 billion) regions accounted for 11.0% and 17.0%, respectively, of the Southeast Region.

The per capita household real monthly average earnings was R$1,337 in 2018 and R$1,285 in 2017. The North and Northeast regions recorded the lowest values (R$886 and R$815) and the Southeast Region, the highest one (R$1,639).

In 2018, the Gini index of the per capita household real monthly average earnings for Brazil was estimated at 0.545. The Gini index of the per capita household earnings tended to reduce between 2012 and 2015 (from 0.540 to 0.524), which was reversed from 2016 onwards, when the Gini index increased to 0.537, reaching 0.545 in 2018.

In the Southeast, Northeast and South regions, the most populated in Brazil, the indexes were 0.533, 0.545 and 0.473, respectively. Between 2017 and 2018, the Northeast and Central-West regions pointed out a reduction of the inequality measured by the Gini index, whereas the other regions registered higher indexes than in the previous year.

In 2018, the earnings from all jobs comprised 72.4% of the per capita household real monthly average earnings. The 27.6% coming from other sources were mostly split into earnings from retirement or pension (20.5%), but also in rental and lease (2.5%), alimony, donation or allowance from non-resident (1.2%) and other earnings (3.3%).

Up to 2015, the parcel of the earnings from all jobs in the per capita household increased, hitting 75.2% this year. From 2016 onwards, the parcel relative to other sources of earnings increased, mainly due to the increase of the share of retirements and pensions, which reached 20.5% in 2018.

Among the Major Regions, relevant differences in the composition of the per capita household earnings were reported, highlighting the share of earnings from all jobs, which varied from 66.5% in the Northeast Region to 77.3% in the Central-West Region.

The earnings coming from retirement or pension also reported relevant regional differences: the share was of 17.0% in the North Region, vis-à-vis the share of 24.5% registered in the Northeast Region; in the others, the share varied from 16.6% in the Central-West Region to 21.2% in the South Region.

In 2018, real average earnings from all sources retreats to a level below 2014

From 2012 (R$2,072) to 2014 (R$2,177), the real average earnings from all sources increased nearly 5.1%. The estimate dropped 3.1% in 2015, changing to R$2,110. They remained relatively stable in 2016 and 2017, and increased 2.8% in 2018, with a value of R$2,166.

Among the Major Regions, the real monthly average earnings from all sources varied: the Southeast recorded the highest value (R$2,563), followed by the Central-West (R$2,440) and South (R$2,401), whereas the lowest one was reported in the Northeast (R$1,412). From 2017 to 2018, the Northeast was the only region in which the earnings posted a negative change and the North registered the biggest expansion (7.8%). Compared with 2012, while the average earnings from all sources increased 4.5% in Brazil, the advance was of 6.2% in the Southeast.

Earnings from labor rises 4.7% over 2012, though below the level of 2014

The real monthly average earnings from all jobs – computed for persons aged 14 years and over employed in the reference week – hit R$2,279 in 2014 , fell 4.1% in 2015 and remained almost stable in the two subsequent years, then hit R$2,234 in 2018. In relation to 2012, when the estimate was R$2,133, the earnings from all jobs represented a real growth of 4.7% in 2018.

Among the Major Regions, the Northeast (R$1,497) and North (R$1,735) recorded the lowest values for the usual earnings from labor, while the highest ones were reported in the Southeast (R$2,572), Central-West (R$2,480) and South (R$2,428). In relation to 2017, the Northeast changed -1.3%, whereas the other regions increased, highlighted by the North (5.6%) and Southeast (3.8%). Compared with 2012, the North and Central-West did not report an increase in the estimate, whereas the Northeast (5.0%) and Southeast (6.1%) rose above the national average (4.7%).

Earnings from other sources in Southeast is nearly twice that of Northeast

From 2012 (R$1,390) to 2015 (R$1,416), the real monthly average earnings coming from other sources accrued a gain of 1.9%. It recorded a loss of 1.1% in 2016 (R$1,400), which was reversed in the two subsequent years – by expanding 2.4% and 3.2%, respectively – hitting an average value of R$1,479 in 2018. In regional terms, the Northeast (R$971) posted the smallest average, whereas the Southeast (R$1,839), the biggest one in 2018.

Among the categories that comprise the earnings from other sources in 2018, retirement or pension was the item that reached the highest average value (R$1,872), highlighting the Central-West with the biggest value (R$2,191) and the Northeast, with the smallest one (R$1,473). The growth of this earnings category was of 3.3% between 2017 and 2018 and of 7.3% in relation to 2012.

The earnings coming from rental and lease posted an average value of R$1,629 and dropped against 2017 (1.3%) and 2012 (4.5%). Alimony, donation or allowance from non-residents added up to, on average, R$635, expanding in relation to 2017 (1.1%) and 2012 (9.1%). Finally, persons who reported other earnings beyond those already cited earned R$582, on average. This estimate expanded in 2018 (0.7%), yet it dropped 10.7% over 2012. The value of other earnings was higher in the Southeast Region (R$855) and lower in the Northeast Region (R$387).

Share of earnings from all jobs has lower level in 2017

In 2018, the contingent of persons who had earnings from all jobs corresponded to 43.4% of the resident population (90.1 million), while they were 43.6% in 2012 (86.1 million). On the other hand, earnings coming from any other source were registered for 24.9% of the residents (51.8 million) in 2018, against 23.6% (46.6 million) in 2012.

Between 2012 and 2014, the share of earnings from all jobs in the population tended to grow at national level, being the highest percentage (44.3%) recorded in 2014. From 2015 onwards, the estimate dropped, hitting its lowest value (43.1%) in 2017. Earnings from other sources expanded since the beginning of the series, having posted the biggest growth between 2017 (24.1%) and 2018 (24.9%), mainly influenced by the expansion of 1.5 percentage points in the Southeast in 2018.

Between 2012 and 2018, share of retirement or pension increases and that of other earnings falls

Among the components of the earnings from other sources, the category of retirement or pension prevailed, having registered a frequency of 14.6% in the resident population with earnings. In the other categories, the percentages were of 7.7% (in the category of "other earnings", which includes unemployment insurance, cash transfer programs of the government, earnings from savings, etc.), 2.5% (alimony, donation or allowance from non-residents) and 2.1% (rental and lease). From 2012 to 2018, the estimates of retirements and pensions increased and those of other earnings, reduced.

North and Northeast have highest percentages of persons with earnings from other sources

Among the Major Regions, the percentages of persons who received other earnings (unemployment insurance, cash transfer programs of the government, earnings from savings, etc.) stood out in the North (10.2%) and Northeast (12.2%), above the national average (7.7%).

The growth of the percentage of persons with earnings from retirement or pension was reported in all the Major Regions since 2012. Between 2017 and 2018, the expansion of 0.9 percentage points in the proportion of persons with this type of earnings in the Southeast stood out. Compared with 2012, the South Region recorded the biggest growth (2.3 percentage points) of this estimate, having changed from 16.0% to 18.3% in six years. The advance of this indicator in the South can be related to the age profile of the region, which counts on the oldest population in Brazil.

Real monthly average earnings of the resident population, with earnings, at average prices of 2018,
by Major Region, according to the type of earnings - 2012-2018

Territory Category 2012 2013 2014 2015 2016 2017 2018
Brazil All the sources 2,072 2,117 2,177 2,110 2,104 2,107 2,166
All the jobs¹ 2,133 2,203 2,279 2,185 2,197 2,183 2,234
Other sources 1,390 1,379 1,413 1,416 1,400 1,433 1,479
Retirement and pension 1,744 1,765 1,822 1,787 1,792 1,813 1,872
Rental and lease 1,705 1,596 1,661 1,766 1,632 1,650 1,629
Alimony, donation and allowance from non-resident 582 623 629 628 618 628 635
Other earnings 652 610 564 596 554 578 582
North All the sources 1,642 1,621 1,639 1,602 1,486 1,527 1,646
All the jobs¹ 1,742 1,728 1,753 1,704 1,602 1,643 1,735
Other sources 937 925 956 944 862 902 1,046
Retirement and pension 1,452 1,453 1,454 1,464 1,402 1,483 1,674
Rental and lease 1,402 1,634 1,453 1,532 1,062 1,040 1,412
Alimony, donation and allowance from non-resident 501 457 552 488 515 469 513
Other earnings 459 416 454 453 398 406 442
Northeast All the sources 1,356 1,395 1,448 1,430 1,401 1,422 1,412
All the jobs¹ 1,426 1,489 1,542 1,502 1,488 1,517 1,497
Other sources 906 908 937 965 953 972 971
Retirement and pension 1,402 1,417 1,427 1,469 1,465 1,483 1,473
Rental and lease 1,091 1,088 1,222 1,323 1,219 1,171 1,161
Alimony, donation and allowance from non-resident 407 403 417 398 400 411 396
Other earnings 384 381 401 411 371 390 387
Southeast All the sources 2,414 2,470 2,557 2,476 2,506 2,457 2,563
All the jobs¹ 2,425 2,511 2,627 2,512 2,562 2,477 2,572
Other sources 1,744 1,720 1,764 1,763 1,746 1,768 1,839
Retirement and pension 1,901 1,936 2,020 1,958 1,974 1,981 2,078
Rental and lease 1,980 1,800 1,913 2,038 1,822 1,909 1,848
Alimony, donation and allowance from non-resident 720 801 821 843 772 793 777
Other earnings 1,032 911 780 834 844 834 855
South All the sources 2,330 2,390 2,436 2,339 2,320 2,376 2,401
All the jobs¹ 2,347 2,427 2,496 2,381 2,371 2,404 2,428
Other sources 1,608 1,618 1,656 1,623 1,585 1,682 1,694
Retirement and pension 1,772 1,815 1,880 1,794 1,770 1,844 1,862
Rental and lease 1,783 1,621 1,621 1,688 1,731 1,699 1,622
Alimony, donation and allowance from non-resident 619 682 673 692 668 700 789
Other earnings 823 806 727 816 685 789 741
Central-West All the sources 2,421 2,465 2,499 2,399 2,365 2,440 2,440
All the jobs¹ 2,491 2,528 2,584 2,475 2,416 2,478 2,480
Other sources 1,539 1,567 1,576 1,554 1,628 1,668 1,650
Retirement and pension 2,168 2,078 2,151 2,100 2,197 2,166 2,191
Rental and lease 1,516 1,479 1,585 1,569 1,613 1,530 1,495
Alimony, donation and allowance from non-resident 623 609 568 634 665 669 637
Other earnings 620 779 666 645 612 719 643
1 Usual earnings received by persons aged 14 years and over

Persons with complete higher education earn the triple of those with secondary education

The persons who did not have any education registered the lowest average earnings (R$856). On the other hand, earnings of persons with complete primary education or equivalent was 67.8% higher, reaching R$1,436. Those who had complete higher education recorded average earnings nearly three times higher than those with only the complete secondary education and nearly six times than those without education.

Real monthly wage bill from labor increases 9.5% between 2012 and 2018

The real monthly wage bill from all jobs of the employed population was approximately R$201.3 billion in 2018, 9.5% above the value registered in 2012. It expanded between 2012 and 2014, dropped between 2015 and 2017 and recovered 3.9% in 2018.

Proportion of households with Bolsa Família falls from 15.9% in 2012 to 13.7% in 2018

In Brazil, 13.7% of the permanent private households earned cash from the Bolsa Família Social Program in 2018. In 2012, this proportion was 15.9%. In the North and Northeast regions, 25.4% and 28.2% of the households earned this benefit in 2018.

The Continued Installment Benefit - BPC-LOAS was earned by 3.6% of the Brazilian households in 2018, 1 percentage point above the proportion reported in 2012. The North and Northeast regions posted the highest percentages once again (5.7% and 5.4%, respectively).

The per capita household real monthly average earnings in the households that received cash from the Bolsa Família was R$341 and in those that not received, R$1,565. For the households that received the BPC, the per capita household average earnings were R$698 and for those that did not receive it, R$1,363.

The access to basic services in the households that received some program was also different from those that did not receive. Among those with Bolsa Família, 71.7% were supplied by a general water network, 37.6% had sewage disposal with collection network or septic tanks linked with the collection network, and 75.7% had garbage collection. The values for the households that did not receive Bolsa Família were higher, particularly those related to the access to sewage disposal (70.9%).

The same behavior was noticed in relation to the ownership of goods. Among the households that received the Bolsa Família program, 95.3% had refrigerators, 30.2%, washing machines, 95.2%, TV sets and 13.3%, microcomputers. Among those that did not receive, the percentages were, respectively: 98.5%; 70.6%; 96.7% and 47.4%.

The proportion of households that received BPC with access to water supply (80.8%), sewage disposal (53.0%) and garbage collection (86.3%) was smaller than among the households not benefited in 2018 (86.0%, 66.8% and 91.3%, respectively). Concerning the ownership of goods, the differences were in the ownership of washing machines (44.0% against 65.8%) and microcomputers (18.7% against 43.6%).