Learning curves are more likely to be applied in situations where most of the costs are labour cost.
Labour costs represent the total expenditure incurred by employers for the employment of employees. They represent a cost of salaried labour force, that is why they are sometimes referred to as salary costs.
In addition to gross wages, labour costs include the social contributions payable by the employer (social security, unemployment, pension, provident scheme, severance pay), whether compulsory, conventional or optional, but net of exemptions, in particular of reductions in social security contributions. They include other expenses related to the employment of employees such as recruitment costs.
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