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What is the difference between average monthly earnings and the average earnings stipulated in Labor Standards Act? What is the difference with income?

  • Release Department:Department of Census

1. The average monthly earnings includes regular earnings (salary and fixed monthly subsides and bonuses), overtime, and other non-regular earnings (ex: monthly bonuses, holiday and performance bonuses, employee bonuses, travel expenses, meal allowances, and earnings adjustment).

2. Average earnings stipulated in Labor Standards Act refers to as the sum of earnings incurred within six months of the first day of the period divided by the total sum of incomes incurred during the period, in which earnings are regular payments calculated on an hourly, daily, monthly, or per case basis, which equals the combined total of regular earnings and overtime described in the Employee Earnings Survey, but not including benefits such as bonuses, non-monthly bonuses and subsidies, and non-earnings compensations.

3. Compensations gained from productions by all individuals and private non-profit organizations plus the transfer payment by government, enterprises and foreign departments for households are called personal income. For individual, personal income includes employment earnings or owner incomes plus gains from assets and transfers.