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Cyprus

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Structure of earnings survey 2018 (earn_ses2018)

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

Compiling agency: Statistical Service of Cyprus (CYSTAT)

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The Structure of Earnings Survey (SES) for the reference year 2018 is the fifth of a series of four-yearly earnings surveys conducted under the Council Regulation 530/1999 and the Commission Regulation 1916/2000 as amended by Commission Regulation 1738/2005.

The objective of the survey is to provide accurate and harmonised data on earnings in EU Member States and Candidate Countries, for policy-making and research purposes. The 2018 SES gives detailed and comparable information on relationships between the level of remuneration, individual characteristics of employees (sex, age, occupation, length of service, highest educational level attained, etc.) and their employer (economic activity and geographic location of the local unit ; size of the enterprise). The SES collects the earnings actually received by an employee of a business in the reference month and year. The information collected relates to the earnings paid to each "job holder". It does not cover earnings by the same employee elsewhere in a second or third job.

Not Applicable

There is no divergence between the national and European concepts and definitions.

However, it should be noted that concerning the employee categories included in the survey, due to confidentiality reasons, the military personnel of the army of Cyprus was not included in the results of the survey.

 

The statistical concepts and definitions are provided in the relevant European legislation and in EUROSTAT's implementation arrangements for the SES 2018 (see attached files).

 

The definitions of the main variables of the SES 2018 are given below:

Economic Activity: The main economic activity of the enterprise. The classification of the economic activities was based on the NACE Rev. 2 Classification of Economic Activities System, of the European Union.

Form of Financial Control of the Enterprise: Distinction between “Public Control” and “Private Control” of the enterprise. The first category refers to cases where public ownership is more than 50% and the second category to cases where private ownership is more than 50%.

Full-time Employees: Employees whose normal working hours are the same as the collectively agreed or customary hours worked in the enterprise, even if their contract is for less than one year. 

Part-time Employees: Employees who work fewer hours than the normal working hours of full-time employees.

Age: The difference between the reference year (2018) and the year of birth.

Length of Service in the Enterprise: The number of completed years of service in the enterprise. The total length of service relates to the period since the employee joined the enterprise. Career breaks of more than 1 year of continuous duration (if they occurred), were subtracted from the total length of service. Where enterprises had been merged or there had been changes of ownership through the years, the length of service was recorded as counted by the enterprise.

Occupation: The occupation of the employee during the reference month of October 2018. The classification of the occupations was based on the International Standard Classification of Occupations ISCO-08 of the International Labour Office (ILO). Trainees or apprentices with an employment contract, were classified in the occupation for which they carried out their apprenticeship or training period. Foremen were also classified in the occupation in which they supervised.

Highest Completed Level of Education: The level of general, professional or higher education which the employee has received and has successfully completed. Classification for this variable was based on the International Standard Classification of Education, 2011 (ISCED 2011).

Hourly Earnings: The average gross earnings per hour, paid to the employee (full-timer or part-timer) during the reference month of October 2018. This is derived from total gross earnings for the reference month divided by the number of hours paid during the same period. 

Total Monthly Earnings: This variable covers gross remuneration paid in cash to employees during the reference month of October 2018, before any tax deductions and social security contributions. In cases where the employees were paid a reduced salary due to absence, the amount was adjusted accordingly in order to represent a full month of regular work of the employee. In the broad public sector, earnings reductions have been deducted from monthly earnings.

Total monthly earnings include all payments relating to the month of October 2018 (even if paid outside the representative month), payments for overtime, shift work premium, allowances for team work, night work, weekend work, commissions, payments for periods of absence and work stoppage paid for entirely by the employer, family allowances and other gratuities in cash fixed by collective agreements or voluntarily agreed, payments to employees’ savings schemes and in general, bonuses and allowances paid regularly in each pay period even if the amount varies monthly.

Total monthly earnings exclude payments made during the reference month of October 2018, but relating to other periods, payments for periods of absence paid by the employer at a reduced rate, payments in kind, reimbursements or payments for travel, subsistence, etc., expenses incurred in carrying out the employers business, allowances for work clothes or tools, statutory family allowances and in general, periodic bonuses and gratuities not paid regularly at each pay date.

Monthly Overtime Earnings: The amount of overtime earnings paid to full-time employees for overtime hours which occurred during the reference month of October 2018. The full rate is counted, not just the premium element added to the normal hourly rate.

Monthly Payments for Shift Work: This relates to the special premium payments for shift work, night work or weekend work, made for the month of October 2018, where these were not treated as overtime. The amount included is the premium element or supplementary payment, not the total payment for such shift work.

Total Annual Earnings: This variable covers gross remuneration in cash and in kind paid to employees during the reference year of 2018, before any tax deductions and social security contributions. In cases where the employees were not paid for a full year due to absence, the amount was adjusted accordingly in order to represent a full year of regular work of the employee. In the broad public sector, earnings reductions have been deducted from annual earnings.

Total annual earnings include all payments relating to the reference year 2018. This covers all regular payments that are paid in every pay period, payments for overtime, shift work premium, allowances for team work, night work, weekend work, commissions, bonuses and allowances paid regularly in each pay period even if the amount varies monthly, payments for periods of absence and work stoppage paid for entirely by the employer, family allowances and other gratuities in cash fixed by collective agreements or voluntarily agreed, payments to employees’ savings scheme. 

Furthermore, total annual earnings also include irregular bonuses and allowances that are not paid in each pay period (13th salary, 14th salary, end year bonuses, productivity bonuses, holiday bonuses, retirement bonuses, etc.) as well as payments in kind during the reference year, where the value of all goods and services made available to employees through the enterprise is taken into account (company products, company cars and mobile phones, etc.). 

Annual Irregular Bonuses: This variable covers bonuses that do not occur each pay period, such as 13th or 14th month salary, holiday bonuses, quarterly or annual company bonuses, productivity bonuses depending on pre-set targets, employee recognition awards, recruitment incentives, leaving or retirement bonuses, etc.

Annual Overtime Earnings: The amount of overtime earnings paid to full-time employees for overtime hours which occurred during the reference year of 2018. The full rate is counted, not just the premium element added to the normal hourly rate.

 

 

Annexes:
COMMISSION REGULATION (EC) No 1916_2000
COMMISSION REGULATION (EC) No 1738_2005
Implementing arrangements for SES 2018

The statistical unit for the survey was the employee.

Information was also collected for the enterprise (economic activity, size group, etc.) but the results of the survey are disseminated for employees.

 

The SES 2018 covered enterprises in all economic activities, excluding Agriculture, Fishing, Activities of Private Households and Extra-territorial Organisations. All enterprises covered had one or more employees.

Data were collected data both for the reference year 2018 and the reference month of October 2018.

The population of employees targeted for the SES were those employed, which had an employment contract in the observation unit in the reference month. Employees who did not receive remunaration during the reference month (October 2018), should not be included in the sample.

 

The specific definition of the population of employees according to the implementation arrangements for the SES 2018 is as follows: 

Employees are all persons, irrespective of their nationality or the length of their working time in the country, who have a direct employment contract with the enterprise or local unit (whether the agreement is formal or informal) and receive remuneration, irrespective of the type of work performed, the number of hours worked (full-time or part-time) and the duration of the contract (fixed or indefinite). The remuneration of employees can take the form of wages and salaries including bonuses pay for piecework and shift work, allowances (e.g. for leaves not taken), fees, tips and gratuities, commission and remuneration in kind. The employees to be included in the 2018 SES sample are those who actually received remuneration during the reference month. Employees who did not receive remuneration in the reference month should be excluded.

Data refer to the government controlled areas of Cyprus. The whole of Cyprus is considered as one single region at the NUTS 1 level.

Not Applicable

As the results of the SES are based on a sample of the population, they are subject to the usual types of errors associated with sampling techniques and interviews (CAPI). Information on errors is provided through the quality reports. The sample in the Cyprus SES is stratified based on the economic activity of enterprises (at the NACE Rev.2 2 digit level) and the size group of the enterprise (number of employees: 1-9, 10-49, 50-249, 250-499, 500-999, 1000+). The overall accuracy and reliability of the SES data is high. This is assured by the sampling design and methods of data collection. 

Not Applicable

1.Weighting of the data:

The data collected were weighted in order to produce the grossed up results for enterprises and for employees.

Design weights were obtained by taking the inverse of selection probabilities of enterprises and employees.

The weight of the enterprise was based on the economic activity (Nace Rev.2 at the 2 digit level) and the size-group of the enterprise (Number of employees: 1-9, 10-49, 50-249, 250-499, 500-999, 1000+).

The weight of each employee was: (weight of employee within the enterprise) x (weight of the enterprise), where the weight of the employee within the enterprise is equal to: (number of employees in enterprise) /(number of employees in sample).

The weights for employees were then calibrated based on the Social Insurance Register for October 2018, based on the  monthly earnings and the number of employees.

 

2. Imputation of data: 

For 232 cases of missing values, the highest level of education variable was imputed, using Logistic Ordinal Regression and taking into account variables considered relevant, such as full-time/part-time employment, gender, supervisory position, employment contract, age, lenght of service, occupation (ISCO-08), public/private control.

 

3. EUROSTAT - Conversion of data for part-time employees to full-time units.

PT employees: conversion to full-time units.
Variable 2.7 (Contractual working time (full-time or part-time)) provides a simple head count of PT employees.
Variable 2.7.1 (Share of a full-timer’s normal hours) was used to convert PT employees into full-time units (FTUs).

PT employees: adjusting gross monthly and annual earnings (variables 4.2 and 4.1) on to a full-time basis.
The actual monthly and annual earnings of PT employees provided by the countries are of interest and are disseminated on EUROSTAT's website. Additionally, because the actual earnings take no account of the hours worked by part-timers, Eurostat used the  percentages for part-timers (given by variable 2.7.1) to gross up the gross monthly earnings (variable 4.2) and gross annual earnings (variable 4.1) of PT employees on to a full-time basis. This allows an approximate comparison with
corresponding earnings of FT employees. This grossing up procedure for PT employees was not undertaken for other monthly or annual variables. 

 

A sample survey was conducted in order to collect the requested data on earnings, the Structure of Earnings Survey 2018. The data were collected mainly by means of computer assisted personal interviews (CAPI).

 

Administrative sources were also used for the collection of data:

1. Treasury of the Republic: Payroll information for salary earners on wages, overtime earnings, fixed allowances and information on unpaid absence or maternity leave, in electronic form. Data regarding the hours of such employees were calculated based on the normal and overtime rates applicable in the public sector (these were also provided by the Treasury of the Republic).

2. Treasury of the Republic: Payroll information for wage earners in electronic form.

3. Public Service Committee: Information on the education level of permanent salary earners, excluding the education sector.

4. Education Service Committee: Information on the education level, date of entry in employment, holiday leave entitlement for permanent salary earners in the education sector.

5. Cyprus Police: Payroll information and information on hours of work, holiday leave entitlement, occupation, for policemen and firemen.

6. Social Insurance Archive: Information regarding the gender, date of birth, nationality, total monthly earnings of employees in the public and private sector. This source could not be used to cover all the variables of the survey regarding earnings, because there is no breakdown available to normal salary, fixed allowances, overtime payments and shift work payments. Therefore, the relevant information had to be collected directly from the enterprises/organisations in the sample. The database was used for checking purposes or for the calculation of total earnings for the year (or monthly) in cases where the relevant information was not available from the enterprises (e.g. employees who left the company, temporary employees for which no records were kept, etc.)

Not Applicable

Timeliness and punctuality refer mainly to pre-established and actual reference periods of data and publication dates.

Dissemination of results on Eurostat's website:

According to the relevant legislation, SES data are to be sent to Eurostat, at the latest, 18 months after the end of the reference period (end of June 2020).

The final results for Cyprus on Eurostat's website are available as from November 2020. 

 

 

Dissemination of results at national level

The Structure of Earnings Survey 2018 in Cyprus covered sectors B – S of the NACE Rev. 2 classification system (including sector O), and enterprises/establishments with 1 or more employees.

Detailed results of the survey were published on CYSTAT's website on the 30th of December 2020.

The statistical units, economic activities to be covered and the definitions of the variables for the Structure of Earnings Survey 2018 (SES 2018) were based on Council Regulation No. 530/1999 and Commission Regulation No. 1738/2005. There were no significant differences between national and European concepts. More specificaly, the main concepts covered in the survey were as follows:

 Economic Activities covered: NACE Rev. 2 B - S (Even though the regulation states that NACE O is not compulsory, CYSTAT also collected data for this economic sector as well.)

Statistical Units: Data were mostly collected for enterprises since the NUTS 1 level refers to the whole of Cyprus (government departments were classified under their corresponding activities). The population of employees targeted for SES 2018, were those who actually received remuneration during the reference month (October 2018) as defined in the Regulation. The fact that data are collected mostly at enterprise level and not at local unit level (as defined in the relevant Regulation), does not have any effect on the estimates of the survey, since Cyprus is 1 whole region at NUTS 1 level and this would make no difference in the results. Additionally, in Cyprus, the majority of enterprises (>90%) are actually single local units, with employment of less than 10 employees and with no further establishments in other geographical areas.

Categories of workers included in the survey:

  • Employees having a direct employment contract with the enterprise and which received remuneration, irrespective of the type of work performed, the number of hours worked (full-time or part-time) and the duration of the contract (fixed or indefinite).
  • Apprentices and trainees with an employment contract with the reporting unit.
  • Seasonal and occasional workers who were working pre-defined hours on a contractual basis.
  • Interim or temporary workers employed by/through agencies – providing that the reporting unit was the agency actually employing them.
  • Outworkers, but only if they were remunerated on the basis of the amount of hours worked.
  • Employees on maternity leave as long as they received remuneration from the employer.

Size Groups of the enterprises: Size groups were defined according to the regulation, including the size of 1–9 employees. The relevant Regulation states that size 1-9 employees is not compulsory, but CYSTAT decided to collect data on this size group as well since the vast majority of enterprises in Cyprus falls into this category (more than 90%).

 

The definitions of variables for SES 2018 were according to the requirements of the Regulation. The coverage of the survey for 2018 was the same as that of year 2014. There was no change in the classification systems used between 2018 and 2014 data.

 

 

A change in the classification system for highest completed level of education (from ISCED-97 to ISCED 2011) occurred between the 2010 and 2014 surveys, creating some problems in the comparability between the 2 surveys. However, if the appropriate education groupings are used, comparability over time is still achieved.

 

As from the reference year of 2010, the classification systems for occupations and economic activities changed for all EU member states (from NACE Rev.1.1 to NACE Rev.2 and from ISCO-88 Com to ISCO-08). This means that comparability with the previous surveys of 2002 and 2006 is not ensured when comparing data using any of these two variables.

 

In comparison with the survey of 2002, the coverage was extended. More specifically, the 2006, 2010, 2014 and 2018 surveys cover all NACE sections requested by the Regulation (compulsory and non-compulsory), including Public Administration and enterprises of all sizes, including 1 or more employees. The survey of 2002, covered enterprises with 2 or more employees and did not cover the non-compulsory sections of NACE.