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Greece

Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.

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Labour cost index (lci)

National Reference Metadata in ESS Standard for Quality Reports Structure (ESQRS)

Compiling agency: Hellenic Statistical Authority (ELSTAT)

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The survey for the compilation of the Labour Cost Indices is part of the European Labour Market Statistics and measures the impact of “labour” on costs. The data covered by the survey refer to the total average hourly labour costs, the average hourly remuneration (wages and salaries) and the average hourly cost of employers’ social contributions. The above indices are compiled by one-digit codes for sections B-F, G-J, G-N, K-N, O-S, P-S, B-E, B-N and B-S of economic activities of Nace Rev.2. In addition, the indices are compiled without seasonal adjustment, with seasonal adjustment and with working-days adjustment.

The index is a Laspeyres quarterly index with base year 2020.

The indices for the years 2000-2004 were produced on the basis of National Accounts data, while from 2005 onwards the indices are compiled on the basis of the Survey on Labour Cost Indices.

Not Applicable

The concepts and definitions of the basic variables used for the compilation of the Labour Cost Indices are laid down in Commission Regulation (EC) 1737/2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs.

 

In the framework of the LCI, total labour costs mean the total expenditure borne by employers in order to employ staff. Labour costs include compensation of employees  with wages and salaries in cash or in kind and employers' social contributions and any taxes relating to employment regarded as labour costs. They do not include any subsidies received by the employer. In addition, any expenditure borne by the employer for vocational training, recruitment costs and any expenditure on working clothes provided by the employer are not included.

 

Employees are all the employed persons who work and receive remuneration in the form of wages or salaries and have a direct employment contract with the enterprise and are remunerated on the basis of the number of hours worked (full-time or part-time) and the duration of the contract (fixed or indefinite). The following are not included:

management personnel whose remuneration wholly takes the form of a share in profits, unpaid family workers, sales representatives who are not included in the payroll, that is they are self-employed.

 

Gross wages and salaries: the total remuneration in cash or in kind payable by an employer to employees (all the persons included in the payroll, including those working from their home) in return for work during the economic year, calculated on the basis of time worked, output or piecework and irrespective the fact they are paid on a regular basis or not. Gross wages and salaries include basic and regular remuneration and additional payments for overtime, night work, working on Sundays and public holidays and shift work, as well as social contributions paid by the employees (even if they are withheld and paid by the employer to the SSF) and all benefits and allowances (maternity leave, children benefits, workplace bonuses for noise, risk, difficult work, shift or continuous work, night work) Christmas and Easter bonuses, individual performance bonuses, bonuses for output/productivity, severance payments commissions and tips.

 

Total hours actually worked: represent the sum of all periods spent on direct and ancillary activities to produce goods and services during the reference quarter. This variable includes hours of work during the regular working hours, hours of overtime work, hours of night work and work on Sundays and holidays. In addition, time spent at the place of work during which no work is done owing to, for example, machine stoppages, and accidents. Total hours actually worked does not include hours paid but not worked, for example: paid holidays/vacation, public holidays, absence due to sickness, maternity leave, etc.

 

Employer’s social  contributions: are the total of the social security contributions paid by the employer, including actual and statutory contributions, collectively-agreed contractual, voluntary and imputed social security contributions paid by the employer.

 

Subsidies received by the employer: These are all amounts received in the form of subsidies of a general nature intended to refund part or all of the cost of direct remuneration but not intended to cover social-security or vocational-training costs. They do not include refunds paid to the employer by social-security institutions or supplementary insurance funds.

 

Vocational training costs paid by the employer (excluded from total costs):

These include: expenditure on vocational-training services and facilities (also those for apprentices but not their wages and salaries), small repairs and maintenance of buildings and installations, excluding staff costs; expenditure on participation in courses; the fees of instructors from outside the enterprise; expenditure on teaching aids and tools used for training; sums paid by the enterprise to vocational-training organisations, etc. Subsidies linked to vocational training should be deducted.

 

Other expenditure paid by the employer: recruitment costs (these are the sums paid to recruitment agencies), expenditure on job advertisements in the press, travel expenses paid to candidates called for interview, installation allowances paid to newly recruited staff, etc. This does not include administrative running costs (office expenses, staff wages, etc.).

 

Industry of the enterprise (branch of economic activity). Due to the fact that an enterprise may belong to more than one industry, it is classified on the basis of employment, that is the industry in which the biggest share of its employees is employed.

 

Quarterly Index of total Labour Costs (LCI_Total): it reflects the short-term trend of the average hourly labour costs. It is defined as the quotient of the (total) labor costs during the reference quarter and the total number of hours actually worked during the same period.

 

Apart from the total LCI, the following indices for the other components of labour costs are also compiled:

 

Quarterly Index of wages and salaries (LCI_Wages): it reflects the short-term trend of the average wages-salaries. It is defined as the quotient of the total remuneration in cash and in kind payable to employees (gross wages and salaries) during the reference quarter and the total number of hours actually worked during the same period.

 

Quarterly Index of employer’s social contributions (LCI_Other): it reflects the short-term trend of the average social contributions of the employers. It is defined as the quotient of the total employer’s social contributions (labour costs less wages and salaries) during the reference quarter and the total number of hours actually worked during the same period.

Quarterly Index of total labour costs excluding bonuses and benefits (LCI_TXB): it reflects the short-term trend of the average hourly labour costs excluding bonuses and benefits. It is defined as the quotient of the labour costs (excluding bonuses and benefits) during the reference quarter and the total number of hours actually worked during the same period.

All the above indices are a Laspeyres quarterly Index with base year 2020. For each Section of Nace Rev.2, each variable (hourly labour cost, hourly wage,etc.) is calculated as the ratio of the hourly variable of each reference quarter to the annual average hourly variable of the base year 2020.

For the calculation of the quarterly aggregate Labour Cost Index (LCI) of a group of Sections B-F, G-J, G-N, K-N, O-S, P-S, B-E, B-N and B-S, the LCI of each section is weighted on the basis of the contribution of the annual labour cost of employees of this section in the previous year to the total labour cost of employees of all sections of the group in the above year.

The statistical unit is the enterprise employing at least 5 employees and belongs to sections B-S of Nace Rev.2.

The statistical population is the total of the enterprises employing at least 5 employees and belong to  sections B-S of Nace Rev.2.

Greece, total.

Not Applicable

The errors that have an impact on the accuracy of the indices are:

  • sampling errors and;
  • non-sampling errors.

Sampling errors are due to the fact that the survey is not conducted on all the enterprises of the target population but on a sample of these enterprises.

The sample size ensures high accuracy estimations as regards both the general indices and the indices for the groups of sections of economic activities at the level of Greece total.

Non-sampling errors mostly refer to measurement errors and non-response errors, on account of non-response of the sample enterprises.

Any measurement errors during data collection are identified by means of quality checks and are duly corrected.

As regards non-response errors, all efforts are made for contacting the enterprises that have not responded by phone or by other means of communication,

in order to persuade them to cooperate and give the necessary information.

Not Applicable

The variables of labour cost are measured in euro.

The Labour Cost Indices are compiled by section of economic activity and by group of sections. For the calculation of the quarterly aggregate LCI, of a group of Sections, the LCI of each Section is weighted based on the contribution of the annual labour cost of employees of this Section in the previous year, to the total labour cost of employees of all Sections in the group, in the above year. The same principle applies for the other types of labour cost (Wages and

Salaries, Employer’s Social Contributions and TXB). For the estimations of weights (in million euros) for each section the most recent yearly data from National Accounts and Labour Cost survey (LCS) were used.

The Labour Cost Indices are compiled on the basis of a sample drawn from the business register of ELSTAT.

More specifically, for every two-digit code of economic activity a number of enterprises is selected for every one of the following size classes:

Size classes

Annual average employment

1

5-9 persons

2

10-19 persons

3

20-49 persons

4

50-99 persons

5

100-249 persons

6

250-499 persons

7

500-999 persons

8

1,000+ persons

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Therefore, all the strata deriving from the combinations of the 2-digit code of economic activity with the size classes are covered.

From 2005, when the survey was first conducted, until 2008 the survey was conducted on a sample of 1,533 enterprises and was designed in accordance with Nace Rev.1.1.

In 2009 the sample was redesigned in order to implement the new Nace Rev.2 and the survey was conducted on a sample of 2,139 enterprises until the 2nd quarter 2013. From the 3rd quarter 2013 until the 4th quarter 2015, the survey was redesigned and it is conducted on a sample of 3,642 enterprises/services.

From the 1st quarter  2016  the survey was conducted on a sample of 4,308 enterprises and from 1st quarter 2018 on a sample of 5,282 enterprises.

From 1st quarter 2023, the sample was redesigned, the new enriched sample amounts to 8,500 enterprises. The sample size of the enterprises was defined in order the relevant standard error (co-efficient of variation CV) to meet the precision targets for the LCI.

Not Applicable

The Labour Cost Indices are available 70 days after the end of the corresponding reference period.

The collected survey variables are fully in line with the relevant definitions laid down in Regulation (EC) 450/2003 of the European Parliament and of the Council, thus ensuring comparability of statistics among Member States.

The Labour Cost Indices are comparable over time. There are available data from the 1st quarter 2000 until the 4th quarter 2008 (according to Nace Rev.1.1) and from the 1st quarter 2000 onwards (according to Nace Rev.2).