CROATIAN BUREAU OF STATISTICS

Labour Market Department

Branimirova 19 – 21, 10 000 Zagreb

Quarterly Labour Cost Index was introduced in statistical system of the Republic of Croatia for the first time in 2007 as a component in “Multi-Beneficiary Statistical Co-operation Programme in 2005 – Technical Assistance” (programme financed by European Union).

The quarterly Labour Cost Index is defined as labour costs divided by the hours worked in the reference quarter. Index is calculating according to the Regulation (EC) No 450/2003 of the European Parliament and of the Council of 27 February 2003.

This quality report will provide all available information on all seven quality criteria, according to Commission Regulation (EC) No 1216/2003.

NACE Rev. 2 is used.

All activities A-S.

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

Kind of Activity Unit (KAU).

Observation units are legal entities of all types of ownership, government bodies and bodies of local and regional self-government units on the territory of the Republic of Croatia.

All persons who have signed a work contract with the employer for a fixed or unspecified period, irrespective of type of ownership of the legal entity and of whether they work full time or less than full time are covered. Persons employed in crafts and trades and free lances and employed insured persons – private farmers are not covered.

The whole country is covered.

Data are available since the 1^st quarter of 2008 for NACE Rev 1.1 (until the 4th quarter of 2008) and from the 1^st quarter of 2009 on for NACE Rev 2.

Base year is 2016.

Until 2016 major data source for calculating labour cost indices is regular Monthly survey on wages and persons employed (questionnaire RAD-1), carried out by the Croatian Bureau of Statistics. This statistical survey covers 70% of persons in employment in each NKD 2007  division. The survey comprises persons in employment in legal entities of all types of ownership, government bodies, and bodies of local and regional government and self-government units, on the territory of the Republic of Croatia. Persons employed in crafts and trades and free lances and employed insured persons – private farmers are not covered, so data on their wages are not included in the data on average gross earnings. The statistical survey on average monthly gross earnings of persons employed in legal entities includes gross earnings of persons in permanent employment, irrespective of the kind of employment and number of working-hours.

Since 2016 administrative source (“Report on income, income tax and surtax as well as contributions for mandatory insurances” -JOPPD form) was used to compile data on earnings, hours worked and social contributions.

Data for the statistical survey Monthly survey on wages and persons employed was collected using paper questionnaire. From the administrative source, data are uploaded each month according to pre-agreed deadline i.e. 10^th of the month.

Data for the statistical survey Monthly survey on wages and persons employed was collected using paper questionnaire.

Administrative data are available in Tax Administration of the Republic of Croatia's database.

Data from the Monthly survey on wages and persons employed was regularly validated on the end of data processing phase. Administrative data are controlled by the source - Tax Administration of the Republic of Croatia.

Data on LCI are compiled in accordance with EU Regulations.

Until 2016 the components comprising labour costs come from two sources Monthly survey on wages and persons employed (gross earning without other remunerations, supports and bonuses as well as hours worked) and  Tax Administration (social contributions paid by the employer).

Since 2016 all components comprising labour costs come from one source Tax Administration (Report on income, income tax and surtax as well as contributions for mandatory insurances” -JOPPD form).

X13-related of JDemetra+v2.2.2 is used as application for the seasonal adjustment. National specific holidays are taken into account for the working day adjustment.

For now key quality, indicators are not calculated regularly.

For now Quality Reports at national level are not available.

There are no national users of LCI data identified.

Major foreign user of data on LCI is Eurostat. Data are transmitted to Eurostat according to regulations currently in force.

See 5.1

Transmitted data are complete.

100%

Starting from 2006, for the purposes of LCI calculations, some changes of questionnaire RAD-1 have been made. Since then it is required from reporting units to extract data on payments for bonuses and allowances that are not paid regularly in each pay period. Those payments are shown in total (for all employees that received them). Also, in order to calculate hours actually worked, it is required to extract data on overtime hours and data on hours not actually worked (specifically: hours of sick – leave until 42 days; annual vacation; holidays and other hours paid but not worked) from total number of hours paid of persons who received wages.

Those extensions of questionnaire were made in order not to increase burden on response units by launching new data collection. In spite of that extension, data on social contributions were still missing. As those data exist in Tax Authority databases, NSI concluded an agreement between two institutions on data exchange. Regular transmission of data on social contributions, according to pre-agreed transmission calendar, is component of that agreement.

Since 2016 not applicable (census survey).

Since 2016 not applicable (census survey).

Not applicable (census survey).

See below

Since 2016 not applicable (census survey).

Not applicable.

Until 2016 total number of units (approximately 11 000 units on monthly basis) used in the survey is covered.

Since 2016 total number of units (approximately 70 000 units on monthly basis) is covered.

In monthly survey each variable in questionnaire has a clear explanation of what should be included an also what should be excluded from data presented. All the data entered in application prepared for data entry are tested with logic control. Logic control contains a set of logical limits which the values of variables should not exceed.

Not available.

Not available.

Not available.

Not available.

Imputations are not used.

Not applicable.

Seasonally adjusted data are available for period Q1 2008 onwards.

For seasonal adjustment of time series we use X13 method (JDemetra+ software)

Data released are not being revised; data are final.

See above

See above

Monthly data on wages, hours actually worked and other remunerations, supports and bonuses are available t+60 days.

Data on average monthly gross earnings are published t+70 days.

First results are complete and final.

Data on gross wages and hours actually worked are available t+60 days (t is referent month).

Average monthly gross earnings per person in paid employment are published by the CBS in First Release No. 9.1.2 (available on www dzs hr) according to Calendar of Statistical data issues.

Data on payments for bonuses and allowances that are not paid regularly in each pay period are not published; they are only used for LCI calculations.

Data on average monthly number of hours actually worked are not published in regular monthly first releases. Those data are only available on yearly basis and are published in several CBS publications.

Data on social contributions are according to legal obligation of data delivery to Tax Authority available t+15 days, but in order not to make any unnecessary costs to either CBS nor Tax Authority it is agreed by an inter institutional agreement to transmit data on tqn+15 days (tqn is last month of the referent quarter).

Since 2016 all data are available t+60 days.

See above

All the data are available on local kind of activity level and on the NUTS 1 level (Republic of Croatia).

Not applicable.

From the first calculations of LCI there were no changes in definitions, coverage and methods of calculation. Brake in series was made in 2009, when the change of NACE from Rev 1.1 to Rev 2 was introduced in statistical surveys. Data for base year 2008 were recalculated on NACE Rev 2, using macro approach, but data for the whole time series could not be back-casted.

Brake in series was also made in 2016 because of changing data source.

Comparable time series are from Q1 2016.

Taking into account the fact that regular Monthly survey on wages and persons employed is the only possible source of data needed for LCI calculations it is not possible to make any comparison of data with data from other sources.

Full coherence

Not available.

Not available.

Data on quarterly LCI are not published nationally and are available for all NACE Rev 2 sections (A-S).

See above

See above

See above

Micro-data are not accessible.

Not applicable.

For all the data from regular Monthly survey on wages and persons employed (questionnaire RAD-1 and admionistrative source) used for calculations of LCI methodological notes can be found in First Releases. In case of additional explanation, they could be provided on special request.

Gross earnings cover all kinds of net pays on the basis of permanent employment plus participation: contributions, taxes and surtaxes, as prescribed by law. The statistical survey on average monthly gross earnings of persons employed in legal entities includes gross earnings of persons in permanent employment, irrespective of the kind of employment and number of working-hours. In the case when persons employed in legal entities in one month or during several subsequent months do not get their pays, they are not included in the data on the number of employed persons while calculating the average for that month or months. Data on average gross earnings are presented according to realised pays in current for previous month, which is in line with the pay-off dynamics in most legal entities, so the average earning per employed person refers to the month for which the pay is received. However, if the pays are late for previous months and periods of time, the data are included into average earnings for the referring month, since the monthly survey dynamics does not allow corrections of data that are already issued and used.

Hours actually worked include effective hours of work in full-time and in working time shorter or longer than full-time. It also includes hours in cases when employees were present at their working place and were paid, but did not work because of damages, cleaning the machines, preparation or cleaning of tools, momentary lack of work, breaks shorter than 30 minutes, writing reports, lay-offs and job stops caused against person’s will and of no fault of his own. Excluded are paid and unpaid working hours when persons in employment did not work or were absent from their working post (daily break longer than 30 minutes, annual leave, paid leave, holidays and non-working days defined by law, absence due to illness shorter or longer than 42 days, professional education, leave up to 7 days, transportation to work and from work).

Other remunerations, supports and bonuses comprise all payoffs on the basis of remunerations, supports and bonuses for which contributions, taxes and surtaxes are paid, but which are not paid in each paid period. These are: refund for holidays, Christmas bonus, Easter bonus, jubilee rewards, 13^th month pay etc.

For now Quality Reports at national level are not available.

Not applicable.

Not applicable.

In order to reduce burden for reporting units starting with Q1 2016 administrative source was used to compile data on earnings, hours worked and social contributions.

The statistical confidentiality of Croatian CBS is regulated by:

• Official Statistics Act, OG, Nos 25/20

• Ordinance on the Access to Confidential Data of the Croatian Bureau of Statistics within the System of Official Statistics (defines conditions of handing over of confidential statistical data of the Croatian Bureau of Statistics to other producers of official statistics in the Republic of Croatia as well as methods of applying the safekeeping measures of the confidential statistical data handed over to the Bureau by other producers of the official statistics in the Republic of Croatia)
• Instruction on the Protection Rules and Methods for the Dissemination of Official Statistics of the Croatian Bureau of Statistics (regulates the rules and methods for ensuring the dissemination of official statistical data within the scope of the Croatian Bureau of Statistics in the form and manner that protect the statistical unit from direct or indirect identification)
• Ordinance on the Conditions and Terms of Access and Use of confidetial Statistical Data of the Croatian Bureau of Statistics for Scientific Purposes (defines conditions and terms of permitting the access to confidential statistical data of the Croatian Bureau of Statistics for scientific purposes)
• Instruction on the Method of Protection of Confidental Statistical Data in the Croatian Bureau of Statistics (regulates procedures and measures for storing and protecting statistical data by applying physical, technical and organizational measures required to ensure statistical data from unauhorised access, alteration, loss or destruction, responsibility implementing measures and protection procedures and other issues relevant to the security of statistical data).

Confidential data are treated according to The Official Statistics Act (National Gazette, No. 25/20).

Statistical data which can, either directly or inderectly, get in connection with persons and legal entities are considered to be confidential. It is not possible to get confidential data in regular monthly survey on wages and persons employed.

No comment.