FAQs

What does this entail?

The publicationLabor Market in Tax SourcesIt is a statistical analysis, of a census nature, based on the information provided by withholding agents in their annual declarations of form 190, which provides data on payments made in respect of salaries, pensions and unemployment benefits and allows us to know the groups of SALARIED WORKERS, UNEMPLOYED and PENSIONERS classified according to various criteria. Statistics addresses the view of the labor market from a dual perspective: that of the entity that employs and pays, and that of the recipient of salaries, pensions and unemployment benefits.

What information can be found in this publication?

In this statistic, the Tax Agency publishes thestatic informationmore comprehensive, of tax origin,about the labor market, of an annual nature. As a complement to this, the publication Labor Market Mobility in Tax Sources provides a dynamic view, making it useful for longitudinal analysis. Specifically, it provides a wide variety of information regarding the movements of new hires, terminations and continued employment in salaried positions, as well as the year-on-year movements of salaried workers from two perspectives: geographical by Autonomous Community and sectoral.

What does it contribute to labor market analysis?

One of the characteristics of this statistic is the phenomenon of plurality. Thus, in these groups, the object of study (salaried workers, unemployed and pensioners), there are situations in which a person can obtain, throughout the year, salary payments from two or more companies or entities, and two or more types of payments. The information presented is annual in nature, allowing for the analysis of the different remuneration situations of individuals in the reference year of the statistics. It allows for the analysis of mixed situations of people, such as: people who have been employed and unemployed in the same year, or who have been salaried and pensioners in the same year, or other mixed situations.

Where do you get the information from?

The statistics are based on the relationship of income recipients presented by employers and entities paying pensions or unemployment benefits through theAnnual Summary Declaration of Withholdings and Payments on Account on Income from Employment, Certain Economic Activities, Prizes and Certain Income Attributions (Model 190).

This declaration template is for informational purposes only; Thus, all entities that pay salaries, pensions or unemployment benefits are required to submit the form, so the information is exhaustive and very detailed. Each withholding agent or payer of income presents a summary information and a list of recipients with individualized data that allows the construction of remuneration paid and withholdings made, which in turn feeds the aforementioned publication Labor Market and Pensions in Tax Sources.

Who are the subjects analyzed in this publication?

From the perspective of the withholding agent, the declarants of form 190 who exclusively pay and withhold other types of income are totally excluded from the scope of study, namely income from economic activities (agricultural or professional), exempt income, prizes, transfer of image rights, as well as the income of directors and administrators. From the perspective of the withheld party, the following are also excluded: the income listed in the previous section related to the selected withholding agents and the income of those withheld who have tax domicile in the Foral Territories, regardless of whether the corresponding withholdings have been paid to the State Treasury or to the Foral Treasuries.

What can be known about these perceivers?

It offers the possibility of knowing the demographic and territorial distribution of labor income, as well as the characteristics of the labor market in a broad sense by including both the employed and the unemployed who receive unemployment benefits, not forgetting pensioners or people who have left the labor market due to age and others who receive widow's pensions, etc. It is important to note that unemployment figures cannot be extracted from this information, because this source only includes those who have received unemployment benefits.

Are the data on salaried workers comparable to those published by other sources of information?

The number of salaried workers in the publications of the Tax Agency differs from that which can be found in other sources such as the Active Population Survey, the Social Security Affiliation register or the National Accounts. Apart from the different definitions and scopes, the main reason for these differences is the fact that the populations in statistics based on tax sources are enumerations of individuals who have gone through a certain situation and not an annual average, which is how figures are usually presented in other labor market statistics. In other words, an individual who has only worked one month in the year adds 1 in the statistics derived from tax sources, while they would add an equivalent salaried portion of 1/12 in the annual data of the rest of the cited statistics.

And are the salary figures comparable to those published in other sources of information?

There are also differences, for similar reasons. The average salary in tax-related sources is an average annual salary that refers to a limited geographical area of territory under the Common Tax Regime and an annual time frame and is measured as the declared work income divided by the number of employees. The approximate wage bill based on labor income has slight conceptual differences with the wage bill measured in other statistical sources. But above all, as has been mentioned, salaried workers are measured here without taking into account the time they have remained in the labor market. This creates a downward bias in the average salary compared to other statistics where the denominator is the number of salaried workers on an average annual basis.

However, from the 2019 financial year onwards, an Estimated Average Annual Salary is presented that takes into account the days worked, eliminating the downward bias due to contracts of less than a full year.

What is the concept ofsalary compensationto the effect of this statistic?

It is the sum of the amounts recorded as cash and in-kind payments in form 190 under code A by all your employers. This amount is defined as the total annual amount of remuneration paid to workers, which constitutes the basis for calculating withholdings, in accordance with the provisions of Article 83.2 of the Personal Income Tax Regulations (Royal Decree 439/2007). From the 2018 financial year onwards, this concept of salary remuneration is supplemented by public maternity or paternity benefits exempt from Personal Income Tax (code L27 of form 190).

What is the concept ofpensionto the effect of this statistic?

It includes the remuneration declared in form 190 with code B (Pensioners and recipients of passive benefits), that is, the receipts not exempt from Personal Income Tax corresponding to pensions and passive benefits of the public schemes of Social Security and passive classes, as well as those corresponding to other benefits, whether public or private, monetary or in kind, referred to in article 17.2, letter a), of the Tax Law), and those classified with subcodes 6 and 7 of code L which are the benefits for permanent disability or great disability that are exempt and the pensions for uselessness or permanent disability of passive classes. Within code B are widow's pensions.

What is theaimof the full year salary module?

The objective is to obtain a measure of annual salary per worker referring to the entire year, and thus make that estimated salary comparable with that provided by other official salary statistics. For example, the average wages of full-time workers from the INE's Annual Wage Structure Statistics.

ThatdifferencesAre there any differences between the full-year salary module and the statistics?

In this module, a subgroup of salaried workers in the statistics is considered, consisting of those for whom the number of days of their employment relationships has been obtained, eliminating those whose average salary was below the Interprofessional Minimum Wage (SMI), but transforming the total salary (estimated salary) equivalent to a full day and year, so that, if a worker has had more than one employment relationship in the year, all of them are counted both in their total salary, as well as in the days worked in each of those employment relationships limited to the sum of days to a full year (360 days)

How is it calculated?Estimated Average Salaryof the full year salary module?

For employment relationships where the number of days worked is available, the salary has been raised to the annual (360 days), and in this way, we obtain an estimated Average Annual Salary for each of the employees.

SME = (⅀ (compensation/ number of days worked limited to 360)*360

How are the results presented?

The classification criteria are gender, age and Autonomous Community, but the most important aspect is the distribution of the salaried population in salary deciles and percentiles. These have been calculated for the total and have been maintained in the different breakdowns, thus allowing visualization of the differences in the distributions by salary brackets of each territory.