Wages, Salaries and Labour Costs

PL/Pox 5 A FI-00022 Statistics Finland

The quarterly Labour Cost Index (LCI) is a Euro Indicator which measures the cost pressure arising from
the production factor "labour". The data covered in the LCI collection relate to total average hourly
labour costs and to the labour cost categories "wages and salaries" and "employers' social security
contributions plus taxes paid minus subsidies received by the employer". Data are available for the EU
aggregates and EU Member States broken down by economic activities defined in sections B to S of the
Statistical classification of economic activities in the European Communities (NACE Rev 2); in
unadjusted, working day and seasonally adjusted form.
The data on the LCI are given in the form of index numbers (current reference year: 2016) and of annual
and quarterly growth rates (comparison with the previous quarter, or the same quarter of the previous
year). The LCI shows the short-term development of the labour cost, the total cost on an hourly basis of
employing labour. In other words, the LCI measures the cost pressure arising from the production factor
“labour”.

Indexation stage determine the classification level used in the collection and
processing of the data. The sample used in the collection of basic data is stratified according to the main
industry group, which specification may be the basis for the basic series of the chain-linked index as well.
Data suppliers are requested to specify the basic data for the key industries by industry unit. In practice,
the specification of costs by industry is actually made only in a few enterprises.
The revised Standard Industrial Classification NACE Rev. 2 was introduced in the printouts of the
labour cost index (2008=100) at the beginning of 2009. At the same time, the index based on
empirical data for the years 2007 and 2008 was released in accordance with the new classification.
The indices of the previous base year (2003 = 100) are published only according to the old Standard
Industrial Classification (NACE Rev. 1.1).
Standard Industrial Classification TOL 2008
B Mining and quarrying
C Manufacturing
D Electricity, gas, steam and air conditioning supply
E Water supply; sewerage, waste management and remediation activities
F Construction
G Wholesale and retail trade; repair of motor vehicles and motorcycles
H Transportation and storage
I Accommodation and food service activities
J Information and communication
K Financial and insurance activities
L Real estate activities
M Professional, scientific and technical activities
N Administrative and support service activities
O Public administration and defence; compulsory social security
P Education
Q Human health and social work activities
R Arts, entertainment and recreation
S Other service activities

By definition, labour costs refer to total costs incurred by employers in the employment of
employees. Labour cost items and the total number of paid personnel are defined in Commission
Regulation No 1737/2005 concerning implementation of statistics on labour costs.
The cost concept used in the labour cost index covers compensations of employees (D1).
When describing the cost development a more general classification level may well be used and
focus can be put on the key cost concepts. Thus the costs of vocational education (D2), employer’s
other costs (D3), and subsidies received by the employer (D5) can be excluded from the quarterly
cost description (they are included in the description area of the labour cost survey). The cost item taxes
(D4) is not relevant in Finland. Around 1.6 per cent of labour costs remain outside quarterly cost
monitoring.

The Index covers both the private and public sector. The base data for the enterprise sector is captured by
a sample survey using the business register as the sample frame.
In the local government sector, data were collected in 2008 to 2010 in municipalities in the Helsinki
region and from 2011 onwards from the biggest municipalities with over 50,000 population and from the
largest joint municipal authorities. In 2012, the data collection was expanded to cover municipalities with
over 5,000 inhabitants. Data on joint municipal authorities have been collected from all joint municipal
authorities in education, health care and social work employing more than 800 persons since
2012.Yearlier local government sector data was based on the change of costs in the national index of
earnings and the data was covered also years 2000-2007. Now the data covers only the years from 2008
on, because the earlier series covers only public administarion and defence; compulsory social security
(O), education (P) and human health and and social work activites (Q). The central government sector
was added to the base data from 2008, by the delivery of 2/2012.
The Index covers all private sector enterprises with at least 20/30 employees. In construction (F),
wholesale and retail trade (G), accommodation and food service activities (H), real estate activities (I),
professional, scientific and technical activities (M), administrative and support service activities (N) all
enterprises with at least 20 employees are covered. In all other industries a comparative threshold of 30
employees is applied.

The concepts and classifications of the labour cost index are defined in the Commission’s implementing
Regulation. Labour costs describe all costs incurred by an employer from the employment of labour.
Labour costs are usually presented as costs for an hour worked. Costs arising from work premises,
commuting or untaxed daily allowances are not included in labour costs. Total labour costs are obtained
by deducting employer's subsidies from the sum of labour cost items.
Employer's subsidies are intended for full or partial financing of costs arising from direct compensations
paid by the employer. Such subsidies comprise employment subsidies and training compensations paid to
employers.
In the labour cost index, labour cost items are grouped as follows:
remuneration exclusive of one-off pay components
one-off pay components
social security costs
In the labour cost survey, labour cost items are divided into the following main groups:
direct earnings
one-off pay components
remuneration for days off
contributions to personnel funds
costs of fringe benefits and company products
social security costs
training costs
other labour force costs
Direct earnings refer to wages and salaries paid for hours worked in each pay period. Direct earnings
comprise direct compensations paid on the basis of hours worked, output produced or amount of work
performed, compensations for overtime, shift work and the like additional bonuses and compensations
paid regularly in each pay period.
One-off pay components refer to items that are not paid regularly in each pay period.
Such bonuses that are often paid only once a year include performance-based bonuses and holiday pay,
and seniority increments paid in some hourly paid fields. Payment of one-off pay components can also be
based on collectively bargained agreements.
Pay for days off refers to compensations paid for statutory, agreement-based or voluntarily granted
leaves, national holidays or other paid days of leave. Typical items of this group are pay during annual
holiday entitlement, monthly paid employees' pay during national holidays, hourly paid employees'
compensation during national holidays and days of leave in compensation of shortened working hours.
Payments to personnel funds refer to the sums enterprises may annually contribute to their employees'
saving systems, such as personnel funds. Costs of fringe benefits and company products include all costs
incurred by an employer from the goods and services it provides for to its employees. Such goods and
services include e.g. company car and subsidised meals, incentive stock options and personnel's
recreational and social activities.
Own personnel's pay is not included.
Social security costs refer to the sum employers pay for the social security benefits of its employees.
Such statutory, agreement-based or voluntary payments include employment pension, social security and
unemployment insurance contributions. Additionally, this group comprises as imputed social security
funding items pay during illness and parental leave (net, i.e. less compensations paid to the employee by
the Social Insurance Institution) and occupational health care costs (likewise, net), as well as
compensations arising from the termination of an employment relationship.
Training costs include e.g. costs of professional training services, costs of course participations, fees of
instructors hired from outside the enterprise and payments to organisations arranging training.
By contrast, pay for the participants during training is not counted as training costs but as pay for hours
worked.
Other labour costs include e.g. costs arising from protective and working clothes and from the
procurement of labour.
Employer's taxes paid on the basis of the sum of wages and salaries or the employed labour force that the
labour cost concept of the European Union contains do not exist in Finland. The concept of labour costs
partly equals the national accounts concept of compensation of employees but exclusive of e.g.
occupational health care, training and recruitment costs.

The description area of structural statistics concerning earnings and labour costs (structure of earnings
statistics, labour cost survey) does not include small enterprises with under 10 wage and salary
earners and of the industries agriculture, forestry and fishing, or public administration.
The target population of the labour cost index is both by its size category and industry more
exhaustive than this. The target population of the index also covers small enterprises regardless of their
size and of the industries, public administration. Of the industries thus only agriculture, forestry and
fishing are left outside the theoretical population of the index.
The average unit costs per hour worked are known to vary somewhat depending on the size of the
enterprise. Enterprises are skewed as to size, the presumed non-response rate is higher for small
enterprises and large enterprises cover the majority of the wages and salaries sum. In the survey
frame the representativeness of all size enterprises is meant to be ensured for the collected data.
The survey frame for the private sector is therefore stratified by the number of wage and salary
earners into five size categories.

Sample size 2466/Population size 9381 in the private sector.
Local government sector 357 municipalities (310) and joint municipalities (47 over 1 000 employees units)
and in the sample 114 municipalities (78) and joint municipalities (36) out of all 357.
There were 525 government offices in 2008 and in 2022 there was 184 active government offices,
total data which is administrative data
The national labour cost index is released quarterly around 70 days after the end of the quarter on
Statistics Finland’s Internet pages. The national index also covers all industries.
Data are released on the main industry sums, six main groups(C,F,G,H,J and K) and on four subindustries
of manufacturing (food industry, forest industry, chemical industry and metal industry), as well
as on the central and local government sectors’ industry sums.
Eurostat publishes the labour cost index quarterly on its Internet pages. Unlike the
national labour cost index, Eurostat publishes data by industry without sector division.
In Finland the cost development of hours worked was defined between 1996 and 2002 on the industry
level by dividing the monthly earnings for total working hours of a full-time wage and salary earner,
determined according to Statistics Finland’s index of wage and salary earnings and structure of
earnings statistics, by the average labour input for a month. The number of working hours of full-time
wage and salary earners was based on Statistics Finland’s employment statistics.
Since 2003 the compilation of the index has been decreed by Regulation No 450/2003 of the European
Parliament and of the Council and by related Commission Regulation No 1216/2003 on its
implementation.
In the first phase the regulation-based statistical obligation related only to manufacturing and private
service sector industries. The industry coverage of the index was enlarged by the Commission’s new
implementing Regulation No 224/2007 to concern from 2007 onwards the industries of so-called
welfare services for which the public sector is mainly responsible.
The European Parliament yearly monitors the quality of the labour cost index on the basis of a report
submitted by the Commission. The concepts and classifications of the labour cost index are defined in the
Commission’s implementing Regulation.

Finland nuts 1

First quarter of 2007 until fourth quarter of 2019 in the private sector.
In the local government sector, data were collected in 2008 to 2010 in municipalities in the Helsinki
region and from 2011 onwards from the biggest municipalities with over 50,000 population and from the
largest joint municipal authorities. In 2012, the data collection was expanded to cover municipalities with
over 5,000 inhabitants. Data on joint municipal authorities have been collected from all joint municipal
authorities in education, health care and social work employing more than 800 persons since
2012.Yearlier local government sector data was based on the change of costs in the national index of
earnings and the data was covered also years 2000-2007. Now the data covers only the years from 2008
on, because the earlier series covers only public administarion and defence; compulsory social security (O),
education (P) and human health and and social work activites (Q). The central government sector
was added to the base data from 2008, by the delivery of 2/2012
The central government data has been added to the series for the first time by the delivery of 2/2012 data.
The data concerns all central government employees of whole time and part time workers since 2008

Table 1. Size classes in the private sector frame
1. 20/30 - 50 employees
2. 50 - 100 employees
3. 100 - 250 employees
4. 250 - 500 employees
5. Over 500 employees
The survey frame was formed on basis on Nace 2 rev. 1, which was then converted to the new Nace
2008 rev. 2.1. by key in the end of 2006. Sampling fractions were formed by two-way power-allocation.
Also non-response was taken into account when forming sample fraction, which was known from the
earlier inquires.
Geographically the calculation covers whole of the country.
All enterprises which have 250 employees or less in the sample are within the survey at least two years of
time. All enterprises which have more than 250 employees are almost always in the survey; only
demographic changes may change the original sample fractions. In table 2 there is the numbers of
enteprises that had been addeed to the sample and numer of enterprise that have been released in each
year. The reason why enterprises have been released from the survey is that som of the enterprises have
fallen under the first size class (under 20 employees). The other reason is that enterprises have gone out
of business. Thirdly some enterprises have been released because they have been in the survey from 2007
on and have been replaced.

The reason why enterprises have been released from the survey is that some of the enterprises have
fallen under the first size class (under 20 employees). The other reason is that enterprises have gone out
of business. Thirdly some enterprises have been released because they have been in the survey from 2007
on and have been replaced.

Table 2. Number of enterprises that have been added and released to the sample
Year                    Number of enterprises            Number of enterprises
                             added to the sample                 released of the sample
2010                    149                                                   40
2011                    239                                                   34
2012                    130                                                   78
2013                    164                                                   127
2014                    133                                                   94
2015                    82                                                     26
2016                    157                                                   147
2017                    121                                                   62
2018                    169                                                   92
2019                    187                                                   193
2020                    18                                                     83
2021                    71                                                     115
2022                    191                                                   127

Local government sector: 114 municipalities and joint municpalities out of all 357,
covers all biggest (over 50 000 inhabitans ) municipalities and simple random sampling in 5 000 - 49 999
inhabitans municipalities, nearly all joint munincipalities is included
Central govenment sector total data, Government offices and istitutions (525 government offices in 2008
and 184 active government offices in 2022)

Quarterly
(In year 2007 direct survey replaced the earlier production model which was based on existing data
sources in the private sector.
From 2007 the base data have been captured by web-inquiries from the selected sample. For sections with
hourly-paid employees (like manufacturing) the data are collected separately for hourly and monthly-paid
employees. For sections with only monthly-paid employees the data are captured for all employees with
specification of part-time employees.)

Private and local government sector:computer assisted (CAWI with interactive online questionnaire) =
web questionary
Central government data (administrative data) State Treasury collects the data from the finacial
administration and delivers the data to Statistic Finland

Preliminary control of data
From 2007 the enterprises selected to the sample provide data on different quarters through an
Internet application. For this process written replying instructions are supplied to the enterprises.
Basic data concerning the enterprise are pre-filled on the form, but respondents can also update them.

Database controls
The aim of the controls made in the database is to ensure that the basic data on labour costs per hour
worked/paid reported by data suppliers are truthful and to indicate probably untruthful values for further
actions. When the data collection for an individual enterprise starts, the logicality and level of key basic
data (number of wage and salary earners, number of hours worked, wages and salaries sum) are ensured.
Controls on enterprises having previously answered to the inquiry are based on the quarterly change in
data concerning each enterprise. On data entered in the database controlled are for example:
– Quarterly change in unit cost calculated per hour worked/paid,
– Change in the definition basis of hours,
– Summation of hourly-paid employees’ pay
specification, and
– Change in the tariff of social insurance contributions.
For hourly-paid employees the data of labour input are always bound to concern actually hours worked.
For monthly-paid employees the data on labour input may - based on respondent’s choice - be supplied
either as hours worked or as hours paid. For all respondents the data supplied are completed by regression
imputation.

Non-response treatment
Total non-response:
An enterprise is considered as responded, when it has answered number of hours and remuneration under
withholding tax. All other situations are interpreted as non-response. If an enterprise is not responding to
the survey, it is taken into account in the estimation as non-responded enterprise.

Partial non-response:
In spite of the fact that we have determined four key questions as compulsory in the survey (number of
paid employees at the end of the reference period, number of hours, remuneration under withholding tax,
the percentage tariff of social security contributions of remuneration), some enterprises may still leave
some of the items unanswered.
If the number of paid employees at the end of the reference period is not responded, it is not imputed.
Number of paid employments is still important item in the model for imputing hours worked and hours
paid.
If the remuneration under withholding tax is not responded, usually the respondents are asked to reply
this during each quarters inquire. If no reply is achieved, then the respondent is interpreted as total nonresponse.
If the percentage tariff of social security contributions of remuneration is left unanswered, we use the
mean of Nace section percentage of all responded enterprises. This is done in every quarter.

Imputation of missing worked and paid hours
With a few exceptions, data suppliers can report the labour input of hourly-paid employees in hours
worked. In contrast, over one half of the labour input of monthly-paid employees is given as paid hours –
not worked. The imputation application concerning the number of working hours ensures that in addition
to the data on empirical hours (hours worked vs. paid), data defined with the regression model on the
number of both hours worked and paid hours are always available for each data supplier.
The preconditions for respondents to reply hours worked or hours paid vary significantly and the quality
of the data is difficult to control. The concept applied depends on respondents preconditions. For hourly paid
employees responses are always hours worked based on payroll data. For monthly-paid employees
responds according to employees choice. In order to complete the missing data we use imputation model:
hours worked to enterprises with empirical data onhours paid, andhours paid to enterprises with empirical
data on hours worked.
The following table describes the Finnish LCI – sample for the monthly paid employees. About one half
of the firms respond ‘the sum of worked hours’ and another half ‘the sum of paid hours’. The problem is:
At least the missing observations for ‘the sum of worked hours’ should somehow be estimated.

Table 3

 

Imputation of missing information is done by four steps:
Step 1:
The regression of the paid or worked hours on the x –vector of characteristics. The aim of this step is to
find adequately accurate model to describe the data generating process for paid and worked hours. The
aim is to find a set of x-variables (explanatory or independent variables) that are strongly correlated with
paid or worked hours (dependent variable). The functional form of the model is near to the ‘flexible form’
and it is specified as double logarithmic form (that is, all variables are measured as logarithmic scale).
Step 2:
Using parameter estimates of the first step regression in imputation of missing observations for ‘paid
hours’ or ‘worked hours’. This step is based on completely deterministic imputation. Imputation of
missing paid hours is done by calculating linear combination between regression estimates and
corresponding x –variables (conditional information set from the firms having missing paid hours)
Imputation of missing worked hours is done by calculating linear combination between regression
estimates and corresponding x –variables (conditional information set from the firms having missing
worked hours):
Step 3:
Calculate for each observation the ratio between the worked and imputed paid hours or between imputed
worked and paid hours.
A. Ratio –estimates between worked hours and imputed paid hours (ratio –estimate = worked
hours/imputed paid hours).
B. Ratio –estimates between imputed worked hours and paid hours. (ratio –estimate = imputed worked
hours/ paid hours).
Step 4:
Aggregate the estimated ratios by appropriate classification of the firms. Use these aggregated ratio
–estimates in imputation of missing observations for worked or paid hours. Firstly we test the equality of
the mean ratio –estimates by the ANOVA –model. If the hypothesis of the equality of the ratio –estimates
is not rejected, then the aggregate ratio –estimate is selected and used in imputation of the missed
observations.

Preliminary control of data, Database controls, Imputation of labour input data, Finalising the processing
of the data, Compilation of the labour cost index.

In accordance with Eurostat’s Regulation,three series must be published on the labour cost index:
A raw series, where labour costs are depicted as real, A series adjusted for working days, where attention
is paid to the variation of working days, and A seasonally adjusted series, which takes account of
seasonal adjustment, such as the regular effect of the payment time of one-off pay components.
Finland has delivered working day adjusted and seasonally adjusted series of the Labour Cost Index
2008 = 100 to Eurostat since the autumn of 2012 when the time series became long enough to model
the variation in the number of working days and seasonal variation. Prior to this, the index was
produced only as a so-called raw series. The index series of the municipal sector are not yet seasonally
adjusted due to the fact that the series are short and the poor coverage of the sample during the initial
years. In the series that are delivered to Eurostat the effect of the local government sector has
been estimated based on the index of wage and salary earnings.
The variation in the number of working days can be divided into two parts – the number of actual
weekdays and Sundays. Similarly, public holidays may be fixed holidays, whose weekday varies, such
as Christmas, or moving holidays, which change the quarter, such as Easter.
For removing the effects of seasonal variation use is made of the TRAMO/SEATS method
recommended by Eurostat.
The method recommended by Eurostat improves the quality of seasonally adjusted data and
international comparability.

JDemetra+ was introduced for the first time in 4/2015 delivery. Also indirect adjustment have been
introduced when calculating SA and WD -series for total LCI-index. When comparing demetra and
Jdemetra+ data there was only slightly differences between the old demetra (we preferred the same
models as earlier, but reduced the number of trading/working regressors). Also we tested direct and
indirect adjustment influence on series and found out that only minor changes were found.
Indirect adjustment was introduced as recommended.

Starting from the third quarter of 2019, Finland had changed the way to calculate seasonally adjusted
and seasonally and working day adjusted series. Finland now sums all sectors data together
(private, local government and government data) and then calculate seasonally adjusted and seasonally,
working day adjusted series. Earlier Statistics Finland has calculated three different series (and calculated
them separately) namely private sector, local government sector and central government sector series.
These sector and industry-specific series was weighted together with costs weights.

The aim is for example that the relative standard error of cost etimate for the whole sample could be 1
percent.
The concepts and classifications of the labour cost index are defined in the Commission’s implementing
Regulation.
So for example In the labour cost survey the definitions is based on the same definitions as in the
Labous cost Index

Response rate have been reasonably high (about 90 percent os from wages ands salaries).
Also preliminary control of data and database controls and imputation metod compined with sample
arrangement and keepin g sample fractions fixed is sufficient to produce quality in the labour costs index.
Annual quality reports is deliverd to Eurostat and evaluated by Eurostat.

The main users of the index are Eurostat and European Central Bank. Also enterprises/firms uses
combination of indexes such as Labour cost index and Producer price indices. The official index of wage
and salary earningsis often better suited for price updates of delivery contracts cost index for delivery
contracts than the current labour cost index. The seasonally adjusted and working-day ad-justed
index improves the suitability of the labour index for delivery contracts. Also the main groups of
standard industrial classification (NACEL2008) is experinced too rough.

Cost-type specific sub-indices published from the index enhance the possibilities to analyse the reasons
for the cost change. Changes in cost factors are also examined in the annual publication of the statistics
on wages and salaries and labour costs released every year.
On the level of the national economy the labour cost index can be used when comparing the cost
development calculated per hour worked with changes in productivity. As it covers the whole
European Union, the index allows comparisons of Finland’s cost development with its rival
countries. Seasonal adjustment of the index improves international comparability of cost changes.
On the level of enterprises the labour cost index makes it possible to compare one’s cost development
with enterprises in the same industry both in Finland and in the EU area.
The official index of wage and salary earnings is often better suited for price updates of delivery contracts
than the current labour cost index. The seasonally adjusted and working-day adjusted index
improves the suitability of the labour cost index for delivery contracts. Due to the shortness of the
time series and seasonal adjustment methods, seasonally adjusted time series may become revised quite
much due to new observations. This should be considered when using the data.

Statistics Finland has from 2007 implemented a new quarterly sample survey of labour costs in the
enterprise sector. The empirical data covers remuneration, social security contributions and the labour
input.

The scope of the survey has from 2008 been enlarged to cover the central government sector. In the local
government sector, data were collected from the year 2008 to 2010 from municipalities in the Helsinki
region and from 2011 onwards from the biggest municipalities with over 50,000 population and from the
largest joint municipal authorities. In 2012, the data collection was expanded to cover municipalities with
over 5,000 inhabitants. Data on joint municipal authorities have been collected from all joint municipal
authorities in education, health care and social work employing more than 800 persons since 2012.
Earlier the local government sector data was based on the change of costs in the national index of
earnings and the data covered also years 2000-2007 (the data was delivered until 1/2015). Now the data
covers only the years from 2008 on, because of the change in the data source. The series that were sent
earlier (until 1/2015) cover only public administarion and defence; compulsory social security (O),
education (P) and human health and and social work activites (Q). The index has so far been supplied as a
raw series, working-day and seasonally adjusted index series from september 2012. Each index is
calculated separately (private, local and central government sectors and also NSA-,WDA- and SA-series
in the same manner then scaled to 2012 = 100) and summed by cost weights.
Starting from the first quarter of 2019 on we have summed all sectors together and calculated NSA-,
WDA- and SA-series and scaled to 2016=100. Earlier Statistics Finland has calculated three different series
(and calculated them separately) namely private sector, local government sector and central government
sector series. These sector and industry-specific series was weighted together with costs weights.

see 6.1-6.6

The basis used to calculate the Labour Cost Index are the results of the Labour Cost Survey. These data,
which are collected every four years, are updated by means of quarterly data sources. When new data
become available from the labour cost survey, a benchmarking exercise is performed for the years
between two labour cost surveys.

see annex in 6.3

Standard error is higest in the Nace section S, 2,81 and lowest in nace section O, 0,39. It is calculated
from all sectors data (private, local and central government data)

Standard error is higest in the Nace section S, 2,81 and lowest in nace section o, 0,39. It is calculated
from all sectors data (private, local and central government data)

There are six type of coverage errors identified
1: Enterprices that can't answer because problems in payroll system
2. Enterprise has fusioned to another enterprise
3. Enterprise sizeclass have changed under 20/30 employees
4. Enterprise has gone bankcrupt or gone out of business
5. Enterprice is in the wrong Nace section
6. same enterprice in the sample (business ID change during the year)
All thes are minor erros and can taken care of sampling which is done yearly (in the beginnig of the year)
when choosing new enterprises in the sample.

Not available.

Not available.

Not available.

Not available.

Not available.

Not available.

See 3.5

See 3.5

see 3.5 data compilation

Available in all sectors since 1/2015 delivery, see annexes in 3.6 adjusment

Since 2007 Statistics Finland introduced the new production model, which is based on direct survey from
enterprises. The Labour Cost Index based on empirical base data has been supplied for the first quarter
2009. The data supplied combined the revised back data since first quarter of 2007. The second quarter of
2012 was the first time that was possible to supply not only raw series but working-day and seasonal
adjusted series.
The indices for the years 2007 and 2008 have been aggregated by using weights from the year 2007. The
indices for 2009 are comparatively based on weights referring year 2008 and the indices for 2010 are
comparatively based on weights referring year 2009 and so on.
Labour costs index data can be revisted by n-1 policy which means that current year and last yearsa data
can be corrected. The reason is that enterprises really corrrect their data by that manner.

For private sector data we have always revised the original data for current and last year (n-1 rule). The
reason for this is that enterprises still can correct the data one year before, because the have corrected
their payroll -system or or they have found errors in them and calculated the data again. For centrral
government sector the original data do not normally change and no revision is done/needeed. For local
govermnment sector data the original data have been corrected longer period than n-1 rule, if errors have
been found. We have now changed to revision policy that we do not change the earlier data from 3
quarter of 2019 on, so the same rule concerns also local government sector as private sector data.

See 6.5

see 7.1.1-7.1.2

According to the Commission Regulation (EC) No. 1216/2003 of 7 July 2003, Member States shall
transmit the quarterly results of their LCI statistics to the Commission (Eurostat) no later than 70 days
after the end of the reference period.

2022Q1: t + 70 days
2022Q2: t + 70 days
2022Q3: t + 70 days
2022Q4: t + 70 days

See above 7.1.1

The index has been implemented from the 1st quarter of 2009 for the first time. The first transmission of
the data was delivered in time except that the old series, years 2000-2006, was delivered 10.6. 2009.

See annex punctuality

The same production model has been applied since 2007 in the private sector and local government
sector. The central government sector is based on administrative data and have been added to series from
second quarter of 2012. The local government sector has been added to series from 1/2015 and is now
based on direct inguiry.
We have compared the wages and salaries sum of the whole economy and quarterly National accounts
figures in industry (Nace sections B,C,D,E), and construction (Nace section F), and in trade,
accommodation and food service activities, traffic and telecommunications (Nace sections G,H,I,J) and in
finance, insurance and business services (nace sections K,L,M,N). This is done by Eurostat

Nuts 1, so no internal comparision is possible, only comparision in Euopean level

not available

The same production model has been applied since 2007 in the private sector and local government
sector. The central government sector is based on administrative data and have been added to series from
second quarter of 2012.

Starting from the first quarter of 2019, the wages and salaries sum of the labour cost index is based on the
Incomes Register.
When introducing the Income register data , it was not as reliable as earlier, because the enterprises have
difficulties to use the register in time
When the data become steady it seems to be as good as earlier.

We have compared the wages and salaries sum of the whole economy and quarterly National accounts
figures

Not available.

This is done by Eurostat

This is done by Eurostat

The Labour Cost Index is being published by Eurostat on Union web sides
Nationally the index is published four times a year on Statistics Finland’s web side.
The metadata of the index are supplied for Eurostat for being presented in web
Nationally the metadata is presented in the LCI web pages.

Nationally the index is published four times a year on Statistics Finland’s web side.

see 9

Statistics Finland, Wages, Salaries and Labour Costs/ Labour cost Index
http://stat.fi/til/tvki/tie_en.html

Not available.

not applicable for LCI

Not available.

Nationally the metadata is presented in the LCI web pages.

On arrival at Eurostat, labour cost data from countries are checked for completeness and consistency. In
Finland also hours worked and wages ans salaries sum are compared to NA figures before publishing.

Not available.

Not available.

Costs of production for statistical data LCI 4,0 FTE and costs 228 102 € which is based on Statistics
Finlad financial administration.
LCS costs of production for statistical data is 0,2 FTE yearly and costs is 13 597 €
Private sector and local government sector data is web-based survey, government sector data is produced
by Ministry of Treasure and the data is compiled by TAHTI system.
We have also studied response burden by measuring the time the respondent fill the data
Most cases the time to fill the form takes under 15 minutes (average time). This of course means that
respondents have prepared reports.
When the time goes over 30 minutes it also means that the respondet have to calculate several reports and
sum them up in order to get the asked information. The average time to obtain information reporting is
 60 minutes (Statistics Finland have measured that in years 2018 and 2021).
Of course Statistics Finland is developing the web-based form to help minimize the the time to fill in the form
Also Income Register data is prefilled in the form partly so that respondenta need fill less items in the form
and easing the informers burden.

If there is under three employees in enterprises in the main group of Nace Section 2008, then figures is
not published. This is not the case in Finland

see above

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