Definition: Gross annual earnings (expression equivalent to "a...

Category: Labour market

Gross annual earnings included, in addition to the earnings in the reference month, any irregular payments which did not occur during each pay period, such as holiday bonuses, 13th month, allowances for leave not taken, occasional commissions, profit sharing, etc. Estimates of annual earnings are of considerable importance due to the fact that irregular premiums constitute a considerable addition to wages in many countries.  Annual earnings may be used to publish tables of annual earnings and may also constitute a correction element for hourly/monthly earnings.