Luxembourg – Muhasebe News

Bulgaria has the lowest average hourly labor expenses in the EU, while Luxembourg has the highest rates

MuhasebeNews — Fri, 31 Mar 2023 08:04:04 +0000

In 2022, the average hourly labour costs in the whole economy (see methodological note) were estimated to be €30.5 in the EU and €34.3 in the euro area, up compared with €29.0 and €32.8, respectively, in 2021.

Lowest in Bulgaria, highest in Luxembourg

The average hourly labour costs mask significant gaps between EU countries, with the lowest hourly labour costs recorded in Bulgaria (€8.2) and Romania (€9.5), and the highest in Luxembourg (€50.7), Denmark (€46.8) and Belgium (€43.5).

Hourly labour costs in industry were €30.7 in the EU and €36.6 in the euro area. In construction, they were €27.3 and €30.8, respectively. In services, hourly labour costs were €30.2 in the EU and €33.3 in the euro area. In the mainly non-business economy (excluding public administration), they were €31.3 and €34.8 respectively.

The two main components of labour costs are wages & salaries and non-wage costs (e.g. employers’ social contributions). The share of non-wage costs in total labour costs for the whole economy was 24.8% in the EU and 25.5% in the euro area. The lowest shares of non-wage costs were recorded in Lithuania (5.4%) and Romania (5.3%) and the highest in France (32.0%), Sweden (31.9%) and Italy (27.8%).

Hourly labour costs increased most in Bulgaria

In 2022, compared with 2021, hourly labour costs at whole economy level expressed in € rose by 5.0% in the EU and by 4.7% in the euro area.

Within the euro area, hourly labour costs increased in all Member States. The largest increases were recorded in Lithuania (+13.3%), Ireland (+9.3%) and Estonia (+9.1%).

For EU countries outside the euro area, the hourly labour costs expressed in national currency increased in 2022 in all countries, with the largest increases recorded in Bulgaria (+15.3%), Hungary (+13.9%), Romania (+12.2%) and Poland (+11.7%). They increased the least in Denmark (+2.3%).

In 2022, most EU countries phased out the support schemes introduced in 2020 and extended in 2021 to alleviate the impact of the COVID-19 pandemic on enterprises and employees. They mainly consisted of short-term work arrangements and temporary layoffs fully or partly compensated by government. Those schemes were generally recorded as subsidies (or tax allowances) with a negative sign in the non-wage component of labour costs. Therefore, the phasing out of COVID-related support schemes make a positive contribution to the growth in hourly labour costs

Source: Eurostat
Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Turkey’s Social Security Agreements with 28 Countries!

MuhasebeNews — Tue, 09 Apr 2019 06:03:11 +0000

Social Security of Our Citizens Working Abroad
Social Security Agreements provide various rights such as;

Equal treatment of citizens of both parties in terms of rights and obligations,
Aggregation of periods of insurance completed in the territory of the other contracting party for the determination of entitlement to a benefit,
In case of an illness, the insured person and his/her family members can avail themselves of the right to healthcare benefits while staying in the territory of the other contracting party,
Family members can avail themselves of the family benefits (child benefits and increments) while residing in the territory of the other contracting party,
Entitlement to a retirement pension for an insured person, who attains the required age after returning to the other contracting party,
Continuing to receive the pension, acquired regarding the employments in one of the contracting parties, after transferring of the residence to the other contracting party,
In case of death of the insured person, family members residing in the territory of the other contracting party can be entitled to a widow’s or orphan’s pension and a lump sum payment as the survivors of the deceased.

Accordingly, those who will avail themselves of the provisions of the agreement are considered equal in the legislations of the contracting parties to the citizens of that country in terms of rights and interests through a common and key provision of the agreements. Thus our citizens employed in the contracted countries and their dependents can benefit from their social security rights under the same conditions as the nationals of that country.

As a result of the social security agreements, our citizens in Turkey have the opportunity to avail themselves of their social security rights, arising from the legislation of the other country and acquired with respect to long and short term insurance branches. In addition to the insured person himself/herself, his/her family members living with him in the country of employment, the family members living in Turkey can benefit from this right.

Turkey has signed Social Security Agreements with 28 countries. These agreements are enumerated in the table below.

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

Industrial Producer Prices Down by 0.3% in Euro Area!

MuhasebeNews — Sat, 06 May 2017 10:07:17 +0000

In March 2017, compared with February 2017, industrial producer prices fell by 0.3% in the euro area (EA19) and by 0.2% in the EU28, according to estimates from Eurostat, the statistical office of the European Union.

In March 2017, compared with March 2016, industrial producer prices rose by 3.9% in the euro area and by 4.6% in the EU28. The largest increases in industrial producer prices were recorded in Belgium (+12.4%), the Netherlands (+9.2%) and the United Kingdom (+8.8%), while a decrease was observed in Luxembourg (-3.2%).

The 3.9% increase in industrial producer prices in total industry in the euro area in March 2017, compared with March 2016, is due to rises of 8.2% in the energy sector, of 3.9% for intermediate goods.

Source: Eurostat

Euro Area and EU28 Government Deficit at 1.5% And 1.7% of GDP Respectively

MuhasebeNews — Sat, 29 Apr 2017 06:52:18 +0000

In 2016, the government deficit and debt of both the euro area (EA19) and the EU28 decreased in relative terms compared with 2015. In the euro area the government deficit to GDP ratio fell from 2.1% in 2015 to 1.5% in 2016, and in the EU28 from 2.4% to 1.7%.

In the euro area the government debt to GDP ratio declined from 90.3% at the end of 2015 to 89.2% at the end of 2016, and in the EU28 from 84.9% to 83.5%. In 2016, Luxembourg (+1.6%), Malta (+1.0%), Sweden (+0.9%), Germany (+0.8%), Greece (+0.7%) registered a government surplus.

At the end of 2016, the lowest ratios of government debt to GDP were recorded in Estonia (9.5%), Luxembourg (20.0%), Bulgaria (29.5%).

Source: Ministry of Economy

New Trade Target with Luxembourg is 1 Billion USD

MuhasebeNews — Wed, 22 Mar 2017 07:26:35 +0000

Turkey-Luxembourg Business Forum took place on March 20, 2017 in Istanbul. Luxembourg’s Deputy Prime Minister and Economy Minister Etienne Schneider, Turkey’s Economy Minister Nihat Zeybekci, DEİK’s President Ömer Cihad Vardan, DEİK/Turkey-Luxembourg Business Council President Pınar Eczacıbaşı, Turkish and Luxembourgian businesspeople participated the Turkey-Luxembourg Third Term JETCO meeting. Many sectors including logistics and finance were evaluated during the Business Forum.

During Luxembourg’s Deputy Prime Minister and Economy Minister Etienne Schneider’s speech at the Business Forum, he highlighted the importance of developing bilateral economic and trade relations between two countries, and cooperation of finance sectors. Even though, finance sectors makes up the 25% of Luxembourg’s GDP, other sectors such as information technology, steel industry, renewable energy and automotive must be taken into consideration. Confidence and sustainability is important regarding investment. Schneider stated his hopes that the recent tensions between Turkey and EU member states will soon end and reminded that communication channels between stakeholders must be open.

Turkish Ecconomy Minister Nihat Zeybekci stated that two countries have reached current trade volume of 200 million USD just in 15 years, thus, a target of 1 billion USD can be reached in a short amount of time. He reminded once more that there is no other country that want to renew 40% of its total housing and has a potential of 200 billion USD. He expects cooperation in the sectors of logistics and finance. Luxembourg is Turkey’s biggest fifth foreign direct investor and Turkey has reached a milestone regarding Turkish-EU economic relations. Renewal of Custom Union will expand Turkey’s economic relations with EU and it will make Turkey a decision maker. Zeybekci also thanked to the Luxembourg government for its firm stance to 15^th of July. He highlighted Turkey’s economic performance in 2016 and added that export has been increasing since November.

DEİK’s President Vardan reminded that there is a business opportunity in the fields of logistics, finance, ecotechnology, renewable energy, aerospace technology, biotechnology and innovative technology. “Turkey is an important center for international investments and investors, and a crossroad for investments in third countries. Many European countries manage its investments and operations over Turkey and set partnerships with Turkey” said Vardan during his speech. He invited businesspeople from Luxembourg to invest in Turkey.

There is a huge economic potential in logistics and finance sectors, he continued “At the heart of Europe, Luxembourg is Western Europe’s logistics center and it can complete its mission by getting together with Turkey. We know that our government is actively supporting this sector, as Turks we believe in the power of Turkish logistics sector and that cooperation between two countries should increase”. Luxembourg has the world’s third largest fund and has highest ratings from three different credit rating agencies. Turkey needs to cooperate with Luxembourg in finance sector and Islamic finance instruments can stand out in Turkey.

DEİK/Turkey-Luxembourg Business Council President Pınar Eczacıbaşı, stated that increasing cooperation between two countries will enable trade growth. “Our goal as the Business Council is to increase mutual investment of 1 billion USD. Total trade volume is 200 million USD, thus as business communities we need to try and work harder”.

Turkey-Luxembourg Trade Figures (Ministry of Economy- 2016)
Turkish export to Luxembourg: 60 Million USD
Main export items: Passenger boats, plastics, iron-steel, textile
Turkish import from Luxembourg: 134 Million USD
Main import items: Iron-steel, plastics, machine and devices
Trade volume: 194 milllion USD
Trade balance: 75 million USD in favor of Luxembourg

Minimum Wages in the Other Countries

MuhasebeNews — Mon, 20 Mar 2017 12:51:20 +0000

Introduction
The amount of minimum wages for the next year is determined in the meeting made in December being the last month of the previous year.

The institution which determines the amount of minimum wage is titled “Minimum Wage Determination Commission”.

Members of the Commission are listed below:
– 5 people – Representatives on behalf of the Government
– 5 people – Representatives from Turkish Company Union (on behalf of workers)
– 5 people – Turkey’s Employers’ Association

The amount of minimum wage in 2017 is supposed to be declared before the year ends.

1- What were the Amounts of Minimum Wages in Turkey for the Last Years?
The gross amounts of Minimum wages for 13 years between 2005 and 2017 are shown in the table below.

In the last column of the table, one may see the increase rate of minimum wages in comparison with the previous year.

The increase rate of minimum wage in 2016 is higher compared to the previous years. As minimum living allowance was included in minimum wage. In the previous years, minimum living allowance was not included in minimum wage.

2- How much is the Minimum Wage in 2016?
Minimum wage in 2016 including minimum living allowance;
Gross:                              1.647,00 TL
Net:                                 1.176,47 TL
Minimum Living Allowance: 123,53 TL (minimum)
Net Paid:                          1.300,00 TL (including minimum living allowance)

3- How much is the Minimum Wage in 2017?
The gross amount of minimum wage in 2017 is 1.777,50 TL and the minimum amount for an employee is 1.404,06 TL including minimum living allowance. Minimum living allowance is included in that amount. There will not be added minimum living allowance to the expounded amount.

Minimum wage in 2017 including minimum living allowance;
Gross:                              1.777,50 TL
Net:                                 1.270,75 TL
Minimum Living Allowance: 133,31 TL (minimum)
Net paid:                          1.404,06 TL (including minimum living allowance)

4- Where Would You Like to Live?
If minimum wage is taken into consideration while giving an answer to this question, the answer will be Luxembourg, the Netherlands, Australia or Belgium. For those countries have the maximum amount of minimum wage, according to Organization for Economic Co-operation and Development. Below, one may find the amount of annual minimum wages of some countries in the World in line with the data given by Organization for Economic Co-operation and Development. Turkey ranks number 20 in the list.

Date: 20 March 2017