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National reference metadata

Slovenia

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: Statistical Office of the Republic of Slovenia

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The survey Labour Cost Index is carried out according to the REGULATION (EC) No 450/2003 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 27 February 2003 concerning the labour cost index, COMMISSION REGULATION (EC) No 1216/2003 of 7 July 2003 implementing Regulation (EC) No 450/2003 of the European Parliament and of the Council concerning the labour cost index, Corrigendum to Commission Regulation (EC) No 1216/2003 of 7 July 2003 implementing Regulation (EC) No 450/2003 of the European Parliament and of the Council concerning the labour cost index and COMMISSION REGULATION (EC) No 224/2007 of 1 March 2007 amending Regulation (EC) No 1216/2003 as regards the economic activities covered by the labour cost index.

The quarterly Labour Cost Index is defined as labour costs divided by the hours worked in the reference quarter. Labour Costs include employee compensation, with wages and salaries in cash and in kind, employers' social security contributions and employment taxes regarded as labour costs minus any subsidies received. Vocational training costs or other expenditure such as recruitment costs and spending on working clothes are excluded. Labour costs are defined in the COMMISSION REGULATION (EC) No 1737/2005 of 21 October 2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs.

Not Applicable

The labour cost index shows quarterly movement of labour costs per hours worked. The collected data are the source for analyzing labour costs on the labour market and enable comparison between labour costs on the Slovenian labour market and on international labour markets.

Statistical unit is Local Kind of Activity Unit (LKAU).

Observation units are legal persons of the public and private sectors or their units registered for performing activity in the Republic of Slovenia. All persons in paid employment who signed the employment contracts (contract work is not taken into consideration), employed for fixed or unspecified period of time, irrespective of whether they work full time or part time, are taken into consideration.

Registered natural persons (Individual private entrepreneurs) and persons employed by them, own account workers, workers in employment promotion schemes, posted workers and farmers are not covered.

The whole country (Slovenia) is covered.

Not Applicable

Not applicable (census survey).

Not Applicable

The components comprising labour costs come from two sources; data from the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons and administrative data from Public Payments Administration of the Republic of Slovenia are merged on individual level by number of transaction account and company ID. For data merging the Register of transaction accounts is used. For legal persons that are involved in the calculation of labour cost indices missing data for social contributions are imputed. The criteria for imputing missing data is as follows:

The imputation of missing data is done on monthly data on labour costs and for all groups of activities (from A to S) in the following way: in every group of activity first the variable persons in paid employment who received earnings and the gross earnings variables are standardised, then for every unit that has no data for the social contributions variable the nearest neighbour among legal persons that have these data is looked for (more precisely: only among those legal persons whose share of social contributions compared to gross wage is in the  [0.15,0.2] interval) in view of the standardised variables for persons in paid employment and for gross earnings and in view of the defined Euclidean metrics in the space of these two variables. From this neighbour the share of the social contributions variable is taken over regarding the sum of gross earnings variable and for the given unit the sum of gross earnings is multiplied by these share. In this way the values for the missing data for the social contributions variable is obtained. 

The number of hours worked is estimated with the help of the quarterly statistical survey Hours Worked.

In calculating labour cost indices the components payroll taxes (until January 2009) and social contributions obtained from the PPA are used. One of the main activities of the PPA is the collection of all payment transactions for the needs of the TA. There are two main differences between administrative and statistical concept: the availability of data and the period of collection. The PPA data are collected at the level of the business entity, while the statistical data on earnings are collected at the level of local kind of activity unit. Data on business entity’s transactions from the PPA are allocated among units with the help of data on persons in paid employment who received earnings, collected with the the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons. The second major difference is the period of collecting the data, where PPA data are collected in the month, while the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons data are collected for the reference month. Therefore for the calculations month T is taken from the the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons and month T+1 for data from the PPA. Another difference is in the form of data transmission. The PPA data are sent for each individual transaction (payments in and out of the business entity, reversals, etc.). For actual payments needed for the LCI calculation the data need to be recalculated at the level of the business entity according to guidelines provided by the PPA.

 

Table 3.5: Number of hours worked for all activities (A-S) and activity C by NACE Rev. 2

 

Number of hours worked

Annual growth of hours worked (previous year = 100)

Year

Group of activities A-S by NACE Rev. 2

Activity C by NACE Rev. 2

Group of activities A-S by NACE Rev. 2

Activity C by NACE Rev. 2

2000

1,010,267,839

351,102,814

 

 

2001

1,014,738,530

346,750,631

100.4

98.8

2002

1,077,118,060

363,833,974

106.1

104.9

2003

1,085,815,695

361,781,408

100.8

99.4

2004

1,074,274,182

353,292,101

98.9

97.7

2005

1,161,686,601

352,684,294

108.1

99.8

2006

1,165,571,731

353,413,237

100.3

100.2

2007

1,203,817,831

360,303,865

103.3

101.9

2008

1,209,727,821

344,153,667

100.5

95.5

2009

1,141,574,195

289,180,091

94.4

84.0

2010

1,136,580,290

288,048,005

99.6

99.6

2011

1,114,827,330

289,285,877

98.1

100.4

2012

1,094,603,190

284,369,852

98.2

98.3

2013

     1,094,307,288   

283,842,916    

100.0

99.8

2014

1,095,045,657

283,306,801

100.1

99.8

2015

1,115,642,441

292,695,894

101.9

103.3

2016

1,139,066,126

300,810,617

102.1

102.8

2017

1,163,206,735

304,748,389

102.1

101.3

2018

1,218,658,141

321,021,344

104.8

105.3

2019

1,241,426,712

328,367,803

101.9

102.3

2020

1,201,855,488

313,046,477

96.8

95.3

2021

1,248,207,136

328,679,472

103.9

105.0

2022

1,273,838,773

331,716,529

102.1

100.9

2023

1,281,324,691

330,582,511

100.6

99.7

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

For calculating the labour costs index only existing sources are used: data on payments of general government revenues on certain accounts (employer's contributions for employment, for maternity care, for health insurance for work-related injuries and occupational disease and for pension and disability insurance) – source: Public Payments Administration of the Republic of Slovenia (PPA) as well as the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons, Labour Force Survey, Labour Costs Survey, Working Time Structure and Hours Worked – source: the Statistical Office.

Not Applicable

See 7.1.1. - 7.1.2.

Methodology and survey results are comparible with EU Regulations regarding LCI.

Before the introduction of the Laspeyres indices a different method of data capture and a different methodology of calculating labour cost indices were used. The indices claculated were normal indices (not Laspeyres chain indices) and the data on paid hours from the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons were used in the calculation. Not all legal persons were covered in the calculation but only those legal persons that were at the same time also covered by the PPA. In addition, missing data on social contributions and payroll taxes were not imputed.
In introducing the new methodology of calculating the labour cost index different structures of data from the PPA were available. Since 2000 data at the level of transactions daily are available but data on social contributions for 1996, 1997, 1998 and 1999 are only available at the national level. With the help of data collected with  the monthly statistical survey on Earnings of Persons in Paid Employment by Legal Persons – in which data on gross wages for these years are available monthly, for every enterprise and its units – social contributions and payroll taxes for individual quarters were estimated.