The indicator real net wages and salaries measures how annual net wages and salaries of employees change over time and approximates the purchasing power of an average employee.
The net wage and net salary is the part of remuneration that is left after income tax and social security contributions have been deducted from the gross wage.
Net wages and salaries are not the same as a person's total income because they only include income from employment. Government transfer payments, freelance and self-employment income, capital assets and rental as well as leasing income are not part of the real net earnings figures. These income types are included in the net household income indicator in the "A secure income" dimension.
The indicator created by the Federal Statistical Office measures how annual net wages and salaries of employees change over time in real terms, that is to say taking into account price development (in line with the consumer price index, 2010=100). It is therefore adjusted for inflation in order to reflect the real purchasing power of wages and salaries.