State Data Agency (Statistics Lithuania)

Labour Statistics Division

29 Gedimino Ave, LT-01500 Vilnius, Lithuania

This report describes the quality of the Quarterly Labour Cost Index in Lithuania during 2022. The LCI is calculated according 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, as last amended by Commission Regulation (EC) No 973/2007 of 20 August 2007.

No specific survey on the LCI is accomplished in Lithuania. The indicators of the LCI are calculated by using data from two data sources: Quarterly Survey on Earnings and administrative data (State Social Insurance Fund Board under the Ministry of Social Security and Labour - Sodra). The LCI and the Quality Report on the LCI are transmitted to Eurostat. LCI data by NACE Rev. 2 are published on the Official Statistics Portal. 

Statistical Classification of Economic Activities in the European Community, NACE Rev. 2.

Since 2000, statistical information covers the whole economy, including individual enterprises, according to NACE Rev. 2 sections B to S at the section level. 

Labour cost index is a relative indicator reflecting the change in labour costs per hour worked over a certain period of time.

Labour costs are the total expenditure borne by an employer in order to employ workers. They include: gross remuneration in cash and in kind; employer's social contributions, vocational training costs, other expenditure incurred in order to employ workers. Vocational training costs, other expenditure incurred in order to employ workers and subsidies received by the employer are excluded from the calculation of the labour cost index.

Gross wages and salaries in cash and in kind refers to remuneration in cash covering the basic wage and bonuses, payable by the employer to the employee directly, including social security contributions and individual income tax payable by the employee, as well as wages and salaries in kind (all goods and services made available to employees through the enterprise, staff housing, presents and other employer's expenditure in kind). Earnings include overtime payments, remuneration for work on weekends and public holidays, time not worked but paid (annual additional leave, idle time which is not the employee's fault, and other time off granted with pay and directly linked to work) as well as cost-of-living allowances (as difference due to wage indexation). Material and temporary unemployment benefits paid irrespective of the source of finance, compensation for unused annual leave, severance pays and similar benefits are excluded.

Other labour costs refers to employer's social contributions, (allowances for sick leave paid by the employer from his own funds; guaranteed remuneration in the event of short-time working, payments to employees leaving the enterprise; family social benefits and other similar costs), except for subsidies received by the employer.

Hours worked refers to normal hours of work and overtime. Hours worked do not include hours paid for but not worked (such as paid annual leave, paid sick leave).

An enterprise.

The statistical population consists of enterprises, institutions and organisations of all types and forms of ownership engaged in economic activities from B to S (according to NACE Rev. 2) and having 1 and more employees.

Whole country

Since 2000

2016=100

Statistical questionnaire of the Quarterly Survey on Earnings, data of Sodra. 

Data of the Quarterly Survey on Earnings - quarterly, data of Sodra - monthly.

Statistical data are collected using electronic statistical data preparation and transfer system e-Statistics (only in Lithuanian) and email. Data of Sodra are obtained monthly from the Sodra database, data are transferred to the data storage of Statistics Lithuania. Some of the data are used directly and some for the evaluation and analysis of statistical indicators.

Before providing statistical information on the labour cost index to users, an analysis of the quality of the prepared statistical information is performed. The statistical indicators for the reference period are compared with the data of previous periods and administrative sources by kind of economic activity. If the statistical information obtained differs significantly from previous periods, the reasons for these differences shall be explained and, if necessary, the statistics shall be checked at the level of the enterprises.

The labour cost indicators needed to calculate the LCI are collected in the Statistical questionnaire of the Quarterly Survey on Earnings. The indicators of individual enterprises required to calculate the LCI are based on the data of Sodra and Quarterly Survey on Earnings.

Gross earnings in individual enterprises are equalled to taxable income excluding payments to employees leaving the enterprise and cash compensations for unused annual vacation.

Hours worked in the individual enterprises are estimated on the basis of the Quarterly Survey on Earnings and Sodra.

The Tramo-Seats method in JDemetra+ 2.2.2 is used for seasonal adjustment.

Reference: ESS Guidelines on seasonal adjustment.

The quality of statistical information and its production process is ensured by the provisions of the European Statistics Code of Practice and ESS Quality Assurance Framework. 

In 2007, a quality management system, conforming to the requirements of the international quality management system standard ISO 9001, was introduced at Statistics Lithuania. The main trends in activity of Statistics Lithuania aimed at quality management and continuous development in the institution are established in the Quality Policy. Monitoring of the quality indicators of statistical processes and their results and self-evaluation of statistical survey managers is regularly carried out in order to identify the areas which need improvement and to promptly eliminate the shortcomings. 

The quality of the information obtained is analysed. Additional statistical quality checks are performed at the macrodata level. Statistical indicators are compared with the previous period and other relevant indicators obtained from administrative sources. Indicators that stand out are identified, and appropriate analyse is carried out. In case of significant deviations, a data provider shall be contacted to explain the reasons of the deviation.

The main users of statistical information are State and municipal authorities and agencies, international organisations, the media, research and business communities, students, whose needs are satisfied without a breach of the confidentiality principle. 

From 2005, user opinion surveys have been conducted on a regular basis. Official Statistics Portal traffic is monitored, website visitor opinion polls, general opinion poll on the products and services of Statistics Lithuania, target user group opinion polls and other surveys are conducted. In 2007, the compilation of a user satisfaction index was launched. The mentioned surveys are aimed at the assessment of the overall demand and necessity of statistical information in general and specific statistical indicators in particular.

For more information on user surveys and their results, see section User surveys on the Statistics Lithuania website. 

All mandatory indicators and their components are published.

100 per cent of information produced in accordance with the Official Statistics Work Programme is published. 

The quality of the indicator depends on the quality of indicators from the Quarterly Survey on Earnings and the accuracy of Sodra data.

A simple random stratified sample is used for the Quarterly Survey on Earnings (individual enterprises are excluded from the scope of the survey; the estimation of data on individual enterprises is presented above). The population of enterprises of each economic activity and ownership form (excluding individual enterprises) is stratified by the number of employees. The number of strata in each economic activity and ownership form equals 6 (size class of enterprises by the number of employees: 1–9, 10–49, 50–99, 100–249, 250–499, 500 and more). A simple random sample is selected in each stratum. 

Tables 1 and 2 present the coefficient of variation of estimates and confidence interval in the Quarterly Survey on Earnings for 2022.

Table 1

Coefficient of variation of estimates of gross remuneration and hours worked¹ in 2022 by quarter, per cent  

Table 2  

Confidence interval of gross remuneration and hours worked¹ in sections B to S in 2022 by quarter

¹ Data on Quarterly Survey on Earnings (individual enterprises are excluded).

See below

Coverage errors are not calculated. The frame is based on the Statistical Register of Economic Entities. This register is maintained and updated on a regular basis with data from various statistical surveys and administrative data sources. The frame is fixed for one year. The quality of this register is quite high and coverage errors are supposed to be small.

Not calculated.

Not calculated.

Statistical data are collected using electronic statistical data preparation and transfer system e-Statistics and email. If an enterprise fills in a questionnaire via an electronic statistical data collection system, a warning message occurs in case of mistakes and the enterprise can correct these mistakes. Statistical data provided via e-Statistics system are directly forwarded to a survey database. Data entry for the Quarterly Survey on Earnings is made at Data Preparation Division, where the first logic control is accomplished. The secondary control of data is accomplished at Labour Statistics Division. The enterprises are re-contacted and the necessary corrections are made in the primary database if errors occur. It is assumed that no measurement errors remain after the corrections. The main method of reducing measurement errors is consultations by telephone and email.

Statistics Lithuania uses an internal classification of non-response reasons. This allows calculating more precise estimates. Legitimate reasons are as follows: no activity, temporary suspension of economic activity, has become unsuitable for statistical survey. In cases when non-response to the questionnaire is committed by an operating enterprise, it is considered that the enterprise has no legitimate grounds for non-response. Estimated average values of variables in the corresponding stratum are ascribed to these units.

Table 3 presents the unit non-response rate in the Quarterly Survey on Earnings.

If an enterprise does not respond to a questionnaire of the Quarterly Survey on Earnings, a reminder is sent; later, a warning is sent; at the latest stage, a protocol of administrative violation of law is filled in.

Item non-response was not observed. There are almost no missing data in the administrative data source since all enterprises report to Sodra.

Processing error is not calculated.

No imputation was done.

Optional

Seasonal adjustment for the LCI is made according to the ESS guidelines on seasonal adjustment.

The Tramo-Seats method in JDemetra+ 2.2.2 is used for seasonal adjustment.

Seasonal adjustment models and parameters are revised and fixed for one year when the data for Q4 become available. Working day adjusted and seasonally and working day adjusted data are recalculated.

Models are fixed for the current year. For the next three quarters, the procedure of adjustment is as follows. Every quarter we evaluate seasonally adjusted and working day adjusted data using fixed models (the same parameters). In some cases, concurrent versus current adjustment is performed to make sure the model is good. The model, outliers, parameters and factors are re-estimated and compared with the current adjustment. An indirect method is used for the LCI seasonal adjustment.

Models are chosen using a detailed analysis module. Logarithm transformation is tested. Seasonal and calendar factors are estimated, 2 regressors (week days and weekend days) are used, outliers are detected and corrected, the Lithuanian calendar is used. The components of the model are analysed by economic sense.

Traditional statistical methods are used for the validation of the models. Diagnostic statistics are used to control the quality of seasonal adjustment. The significance levels, the number of outliers and statistics on residuals (residual normality, residual asymmetry, etc.) in data series are controlled. 

After amendments in legal acts, detection of significant errors, revisions of statistical indicators are performed. Users are informed about their results and changes immediately. Users are informed about planned revisions in advance through a planned statistical information revision calendar. 

All periods were revised in 2015 due to changes in national currency (since 2015, EUR). The final unadjusted LCI were published and not revised after the publication.

 The unadjusted LCI were not revised since 2015.

The following data for 2022 were transmitted to Eurostat:

2022Q1:  t + 68 days

2022Q2:  t + 69 days

2022Q3:  t + 68 days

2022Q4:  t + 67 days

In the nearest future, we have no plans to publish preliminary data on the LCI.

The final statistical information in Lithuania is published on the 68^th–69^st calendar day after the end of the reference quarter for 2022.

Table 4 presents LCI data publication at Statistics Litunania and Eurostat in 2019–2022.

Table 4

LCI data publication at Statistics Lithuania and Eurostat for 2019–2022 by quarter

Statistical information for 2022 was delivered on time, without delay.

Statistical information for 2022 was delivered and published in accordance with an Official Statistics Calendar. 

Statistical information is comparable across the EU.

Optional

Statistical indicators are fully comparable.

From 1 January 2019, the rates of the state social insurance contributions paid by the employer and the employee were changed. Gross earnings were indexed 1.289. For this reason, 2019Q1-2019Q4 the ‘wage and salary costs’ (WAG) and ‘labour costs other than wages and salaries’ (OTH) components of the Labour Cost Index have a break in the series.

Due to COVID-19, employers received subsidies as state support in 2020-2021. State support in the form of subsidies was paid to employers who declared downtime, and to those who did not declare downtime but were severely affected by COVID-19. Increased subsidies and also decrease in hours worked, mostly affected the data of the labour cost component “labour costs other than wages and salaries”.

Statistical indicators are comparable according to NACE Rev.2 since 2000.

The coverage of economic activities, definition and calculation methodology of the main component of average annual labour costs per employee – compensation of employees – in the labour cost survey and in national accounts differs.

National accounts cover all economic activities and economic entities (based on institutional unit conception); non-observed economy indicators are estimated. Gratuities and tips are not included in the compensation of employees in the labour cost survey, while in national accounts they are included.

Comparability at NACE section level.

Table 5 presents the comparison of the number of employees with the average number of persons employed in 2022. 

Table 5

Average number of employees and average number of persons employed in 2022 by quarter

Fully coherent (unadjusted) - annual data are averages of the four quarters.

The comparison of the LCI with national accounts (ESA 2010; compensation of employees) and the Labour Force Survey (hours worked) is provided by NACE Rev. 2. National accounts data for 2019–2022 are not final.

The differences between the compensation of employees per hour worked by ESA 2010 and the LCI can be explained as follows:

• the rate of non-observed economy is not taken into account in the compilation of the LCI, while in national accounts it is estimated;
• hours worked for the calculation of compensation of employees per hour worked by ESA 2010 are derived from the Labour Force Survey.

Coherence problems are taken into account when comparing data relating to the same variables from different sources (ESA 2010 and LCI). LCI data are not strictly comparable with national accounts due to different coverage of economic activities, enterprises coverage (NA based on institutional unit conception), non-observed economy, not final data and other factors.

Graph 1 in annex presents available information on annual growth rates of the ESA 2010 compensation of employees per hour worked and annual growth rates of the unadjusted total LCI by NACE Rev. 2 aggregates for 2019–2022 by quarter.

Full coherence of labour statistics indicators is ensured.

Quarterly growth rates (in comparison with the corresponding quarter of the previous year) of the working day adjusted and (in comparison with the previous quarter) of  the seasonally and working day adjusted data by economic activity are published in a press release according to a Press Release Calendar. The press releases and the Press Release Calendar are available on the Official Statistics Portal.

A news release on the labour cost index was published till 2023 m. The last reference period published was 2022 Q3.

Quarterly growth rates (in comparison with the corresponding quarter of the previous year) of the working day adjusted and (in comparison with the previous quarter) of the seasonally and working day adjusted LCI in industry, construction and services (sections B–S) were published in a monthly publication Economic and Social Development in Lithuania (in Lithuanian and English) until 2018.

The unadjusted, working day adjusted, seasonally and working day adjusted LCI for the labour costs components “wages and salaries”, “labour costs other than wages and salaries”, “total labour costs” and “total labour costs excluding bonuses” in the form of index numbers with the base year, quarterly growth rates (in comparison with the previous quarter and with the corresponding quarter of the previous year) and labour costs per hour worked (in EUR) are published in the Database of Indicators (Population and social statistics-> Remuneration and labour costs -> Labour cost index (quarterly)). The data can be downloaded in various formats. Database of Indicators page is for viewing and analyzing statistical information. More information on the Database of Indicators can be found in the User's Guide of the Database of Indicators.

Optional

Statistics Lithuania may, on the basis of contracts concluded with higher education institutions or research institutes, provide statistical data to researchers of these higher education institutions and research institutes to carry out specific statistical analyses for research purposes. Statistical data are provided in accordance with the provisions specified in the Description of Procedure for Data Depersonalisation and Pseudonymisation. More information is available on the Official Statistics Portal, in the section Data Provision.

Statistical information can also be provided upon individual requests (inquiries) (more information on the website of Statistics Lithuania at https://osp.stat.gov.lt/e.-paslaugos).

The LCI calculation methodology (only in Lithaunian), approved on 9 November 2018 by Order No 243 of the Director General of Statistics Lithuania;
The LCI metadata (in Lithuanian, in English) available in the Official Statistics Portal;
The Methodology of the Quarterly Survey on Earnings (only in Lithuanian),  approved on 19 September 2018 by Order No 206 of the Director General of Statistics Lithuania. 

Quality of statistical information and its production process is ensured by the provisions of the European Statistics Code of Practice and ESS Quality Assurance Framework.

In 2007, a quality management system, conforming to the requirements of the international quality management system standard ISO 9001, was introduced at Statistics Lithuania. The main trends in activity of Statistics Lithuania aimed at quality management and continuous development in the institution are established in the Quality Policy.

Not calculated

There are several metadata files available, users may consult them at will.

The labour cost index statistical information is compiled using data from administrative sources (Sodra) and the Quarterly Survey on Earnings. In 2022, the average time required for filling in the questionnaire (Quarterly Survey on Earnings) was equal to 1 hour and 20 minutes. Moreover, rotation of enterprises is accomplished in order to reduce the burden for small enterprises.

Statistics Lithuania focuses on the reduction of the statistical reporting burden for respondents. The obligations of Statistics Lithuania to implement the Law on Reduction of Administrative Burden of the Republic of Lithuania and to reduce statistical reporting burden for respondents are provided in the Statistical Reporting Burden Reduction Policy.

Further information on burden reduction can be found at Reduction of Statistical Reporting Burden.

LCI data are calculated only at the section level. LCI data are not confidential for all users.

In  the process  of  statistical  data  collection,  processing  and analysis  and dissemination of  statistical information, Statistics  Lithuania  fully  guarantees  the confidentiality  of  the  data  submitted  by  respondents, as defined  in the Confidentiality Policy Guidelines of Statistics Lithuania and Regulation (EC) No 223/2009 on European statistics.

Statistical Disclosure Control Manual, approved by Order No DĮ-107 of 26 April 2022 of the Director General of Statistics Lithuania.

The State Data Governance Information System Data Security Regulations and Rules for the Secure Management of Electronic Information in the State Data Governance Information System, approved by Order No DĮ-202 of 27 August 2021 of the Director General of Statistics Lithuania.

Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society. 

Not available.