Procedure for estimating the SME (Estimated Average Wage)

The TGSS has provided, for each person (recipient of a salary), the different employment relationships (recipient-payer) as an employee, with the days worked in each of them. This information has been cross-referenced with the perceptions of key A (receiver-withholding agent pair), obtained from form 190 "Annual Summary Declaration of Withholdings and Payments on Account on Income from Work, from certain economic activities, prizes and certain imputations of income", so that with this cross-referencing the days worked that correspond to the salary remuneration declared in said form are incorporated.

To calculate that person's salary, all those earnings (receiver-withholding agent pairs found in the cross-reference of model 190 and TGSS file), whether monetary or in kind, as income from work, have been included, as well as code L27 (Public maternity or paternity benefits exempt from Personal Income Tax) and the ILT benefits of code B (temporary work incapacity), the latter have been included since they are considered conceptually to have to be associated with an employment relationship.

The salary obtained has been raised to the year (360 days) and in this way we obtain an estimated Average Annual Salary for each of the salaried workers.

SME = (Σremunerations/ nºdays worked limited to 360)*360

Those perceptions whose SME was either below the SMI (part-time work) or above 720,000 euros have not been taken into account, so that these values do not distort the analysis.

Thanks to the salary module, we can see how estimated salary earnings and the group of salaried workers are distributed by gender, age, and geographical distribution.