Labour cost index (lci)

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

Compiling agency: CBS - Statistics Netherlands


Eurostat metadata
Reference metadata
1. Contact
2. Statistical presentation
3. Statistical processing
4. Quality management
5. Relevance
6. Accuracy and reliability
7. Timeliness and punctuality
8. Coherence and comparability
9. Accessibility and clarity
10. Cost and Burden
11. Confidentiality
12. Comment
Related Metadata
Annexes (including footnotes)
 



For any question on data and metadata, please contact: Eurostat user support

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1. Contact Top
1.1. Contact organisation

CBS - Statistics Netherlands

1.2. Contact organisation unit

Economic and business statistics and national accounts

1.5. Contact mail address

Postbus 24500, 2490 HA Den Haag, Netherlands


2. Statistical presentation Top
2.1. Data description

This report describes the quality of the 2022 Labour Cost Index (LCI) in the Netherlands. It is made to meet the requirements in Commission Regulation (EC) No 1216/2003 Annex I because the Dutch LCI is largely based on the National Accounts (NA). The final results of the National Accounts are published 1½ year after the respective reporting year. In 2018 the National Accounts has implemented a major revision of the reporting year 2015. This included revised time series back to 1995. Because of the revision of 2015 the Labour Cost Index was also renewed.

In 2023 the LCI base year moved from 2016 to 2020. The results of the index changed, however the developments in terms of percentages remained mostly the same.

2.2. Classification system

Based on the National Accounts.

2.3. Coverage - sector

Sector B to S.

2.4. Statistical concepts and definitions

Based on the National accounts.

2.5. Statistical unit

Enterprise.
The Labour Cost Index is based on monthly micro-datasets on job level which are derived from the Employees’ Register of the Employee Insurance Agency. The units in this register are based on the delineation as in the Statistical Business Register SBR. This delineation is according to the Eurostat business register recommendations manual and therefore strictly speaking not in full accordance with ESA 2010. However, in practical terms the definition of the enterprise in the manual on business register and the definition of the Kind of activity Unit (KAU) in ESA 2010 are closely related . Both the local KAU and the enterprise are defined as producers with activities that are characterized by an input of products, a production process and an output of products, whereby in the SBR the activities are classified at the class level (four digits) of NACE Rev. 2. In the definition of the local KAU emphasis is put on the location of production at a single site or at closely related sites. This is absent in the definition of the enterprise. In the business register the local KAU can be compared to the local unit as it is distinguished within an enterprise. From a national accounts perspective “enterprise” can be considered as an appropriate approximation of “KAU”.

2.6. Statistical population

All employees.

2.7. Reference area

Domestic concept.

2.8. Coverage - Time

Indices from the year 2000 and onwards

2.9. Base period

Base year 2016=100 for the vintages released until March 2023, base year 2020=100 for data released since June 2023.


3. Statistical processing Top

The LCI is a chain linking index.

3.1. Source data

Main source; The monthly insurance policy administration database on wages and social contributions of the Institute for Implementations of Employees' Insurances (UWV). Other sources; Labour Force Survey, Ministry of Social Affairs and Employment, Dutch Central Bank, Continual Vacation Survey.

3.2. Frequency of data collection

Main source; monthly.

3.3. Data collection

Main source; registration.

3.4. Data validation

Data for hours worked, earnings and labour costs are validated from quarter t+90 days.

3.5. Data compilation

Quarterly.

3.6. Adjustment

The LCI is based on a monthly registration that contains earnings, social securities and hours for all employees in the Netherlands. To deliver to Eurostat in time data of only two months are available and the last month is estimated. The results are not yet publicable for the Netherlands but send to Eurostat as provisional. The results of each quarter are publishable at the transmission of the following quarter.


4. Quality management Top
4.1. Quality assurance

See 3.1.

4.2. Quality management - assessment

CBS.


5. Relevance Top
5.1. Relevance - User Needs

The LCI is not published by Statistics Netherlands but compiled for Eurostat. It is unclear to which extent the LCI results are used in the Netherlands. The LCI, as provided by the various NSI’s and published by Eurostat, are used by Statistics Netherlands for comparing the development of labour costs among different European countries.

In the context of the National Accounts (NA) Statistics Netherlands publishes hourly labour costs on an annual basis (in euro’s, not as an index) and total labour costs and total hours worked on a quarterly basis. Subsidies on labour cost and final taxes are not included in the calculation of these NA-labour costs.

In the year 2011 Statistics Netherland published results of a new statistic: the Price index of labour. The labour cost in this index relates to the total compensation of employees minus subsidies on labour cost (exactly like the LCI). These figures on total compensation of employees and the hours worked per industry originate from the National Accounts of the Netherlands (exactly like the LCI). The two main differences between the LCI and the Price index of labour are:

  • The labour costs per hour worked in the LCI is only weighted by NACE, while the labour costs per hour worked in the Price index of labour are weighted by (a) 64 industries, (b) sex, (c) age, (d) level of education and (e) yes or no collective labour agreement. The Price index of labour represents the development of the real price of labour.
  • The Price index of labour 2015=100 is published every quarter, but relates to a moving period of four quarters.
5.2. Relevance - User Satisfaction

Not applicable.

5.3. Completeness

The implementation of Regulation (EC) No 450/2003 has been completed.

5.3.1. Data completeness - rate

The implementation of Regulation (EC) No 450/2003 has been completed.


6. Accuracy and reliability Top

Conformable to the Labour Accounts (LA).

6.1. Accuracy - overall

accurate, within 90 days plausible estimates.

6.2. Sampling error

Not a sample.

6.2.1. Sampling error - indicators

Not applicable.

6.3. Non-sampling error

See below.

6.3.1. Coverage error

Not applicable.

6.3.1.1. Over-coverage - rate

From 2006 onward provisional figures are based on a monthly updated register on employment, wages and benefits. This register covers the entire economy.

6.3.1.2. Common units - proportion

Not applicable.

6.3.2. Measurement error

Not applicable.

6.3.3. Non response error

Not applicable.

6.3.3.1. Unit non-response - rate

Not applicable.

6.3.3.2. Item non-response - rate

Not applicable.

6.3.4. Processing error

Not applicable.

6.3.4.1. Imputation - rate

Estimation, frequency, hours worked, administrative data

Calculation of the LCI at Statistics Netherlands largely arises through the system of Labour Accounts. Labour Accounts comprise all necessary ingredients for estimation of the labour costs and include hours actually worked. Results of the Labour Accounts which are relevant for the estimation of hours actually worked are the number of employees, the number of contractual hours and the number of hours paid, each broken down to economic activity. The base for the estimation of the number of hours actually worked is the number of hours paid, which equals the sum of the number of contractual hours and the number of paid overtime hours. Outside the system of Labour Accounts, the hours paid are transformed into hours actually worked by adding hours worked but not paid, and subtracting hours paid but not worked.

In the following, we will give a brief account of the system of Labour Accounts, and then deal with the estimation of the various time-components that are required in the transformation.

 

The system of Labour Accounts

At Statistics Netherlands, the system of Labour Accounts forms an integrated part of the National accounts. Basically the system of Labour accounts integrates all available data on the labour market and confronts it with National Accounts’ estimates. At the end of the process, unique estimates arrive at quantities such as wages and salaries, employers’ social contributions, the number of jobs, the number of hours worked, full-time equivalents and so on. As the system of Labour Accounts is an integrated part of the National Accounts, it is also tied to the National Accounts with regard to release policy.

 

Sources for the Labour accounts

In the following, we only deal with the direct sources for the Labour Accounts. This does not alter the fact that the results of the Labour Accounts are also influenced by other National Accounts sources, such as production surveys. Which labour-related sources are used for a particular estimate depends on the moment in time.

The only source available for all estimates is the monthly Labour Force Survey. For regular quarterly estimates, the extra available source is the Quarterly Survey on Employment and Wages (until reporting year 2005). The results of this survey are the number of jobs and the labour costs paid per employer. The provisional annual estimate is also based upon this survey, or rather these four quarterly surveys. For the improved annual estimate, the Annual Survey on Employment and Wages becomes available (until reporting year 2005). This survey has much more detail on employees. For final estimates the Social Statistical Database is available. As it is largely based upon government registers, it has complete information on many labour market variables.

From reporting year 2006 onwards, a monthly updated register on employment, wages and benefits has replaced the quarterly survey. It is believed that in the long-term an even more exhaustive use of this register will lead to a much faster convergence to final estimates. Not only will the flash estimate be much closer to the regular quarterly estimate, also will provisional and improved annual estimates lie much closer to the final annual estimates. Finally, quarterly estimates will be much higher in quality, as the register is richer in detail than the old quarterly survey. The monthly insurance policy administration database on wages and social contributions of the Institute for Inplementations of Employees' Insurances (UWV) is the main source for quarterly as well as annual figures of the Dutch labour accounts with regard to employees.

Up to reporting year 2006 data on subsidies on labour costs were only available on an annual basis. Quarterly figures were calculated by dividing the annual sum by four. From 2007Q1 onwards data on subsidies are available quarterly, and are used to calculate the LCI, introducing a different pattern in labour costs. In the series after the revision 2010 the subsidies on labour costs are distributed (for the entire time series) based on monthly insurance policy administration database on wages and social contributions of the Institute for Implementations of Employees'Insurances (UWV). Also the final tax payments results from this registration. Both series are compiled according to NACE Rev 2 back to 1995.

The labour costs subsidies includes the payments for the part-time unemployment regulations. Part-time unemployment hours are paid out of the unemployment fund for 70% to the companies.

Due to the worldwide financial crisis, companies (and employees) are forced to contribute additional payments to the pensionfunds from 2009 onwards. These additional payments for pensionfunds covering complete industries are a part of the total labour costs. Since revision 2010 the additional payments from individual companies to their own private pension funds are registered as social contribution and are therefore also included in total labour costs, whereas formerly these payments were registered as"capital transfers".

 

Hours worked

The Labour accounts not only provide estimates of labour accounts, but also of hours paid (every quarter). In the Labour accounts the quarterly number of contractual hours and the number of hours paid are calculated from the annual numbers, according to the number of working days in every quarter.

In the new time-series (after revision 2010) all former figures were revised in order to implement ESA 2010. Among other things this implied an improvement of the quarterly distribution of holidays in the time-series (between 2001 and 2009).

The transformation of hours paid into hours actually worked (relevant for reporting year 2101 onwards) is made by adding hours worked but not paid, and subtracting hours paid but not worked. Hours worked but not paid correspond to unpaid overtime.

Hours paid but not worked consist of the following time components:

- sick leave and maternity leave

- bad weather leave

- short leave

- leave financed by saving (levensloop verlof)

- parental leave

- short time

- strikes.

For each component, a percentage is taken from the number of contractual hours. This is done every quarter for 128 economic activities (NACE Rev. 2, starting in September 2011; up to June 2011 262 economic activities for the final figures, 118 economic activities for provisional figures, NACE Rev. 1.1; although for some data only more aggregated figures are available, for instance per section). The number of unpaid over hours is estimated directly. The sources used for each item are given below.

 

Unpaid overtime

Unpaid overtime is available through direct surveying in the Labour force Survey. The ratio of unpaid overtime versus paid overtime is determined and multiplied with the number of paid over hours which are obtained from the system of Labour accounts every quarter.

 

Sick leave and maternity leave

Quarterly sick leave percentages, including pregnancy leave, are available by the National Statistic on Leave (2002-2005), which is based on sick leave registration. This information is linked to information about the sum of paid sick leave, which is part of the National accounts. The National Statistic on Leave was replaced by a new yearly survey in 2006. Now, starting in 2009, this yearly survey is replaced by a quarterly survey. These new figures about sick leave are used in the LCI.

 

Bad weather leave

This kind of leave only applies to construction. From the production survey on construction, quarterly estimates are made on the number of lost days.

 

Short leave

Short leave is permitted leave to see a doctor or a dentist and so on, on a working day. Information on short leave is available through the EU Labour Cost Survey.

 

Leave financed by savings (in Dutch: levensloopverlof)

Company savings plans introduces by the government ended recently. Only 'leave financed by savings' is still available for some employees. People save mony for buying a period of free time to spend their savings. This leave is introduced since revision 2010. Estimates are based on datasources from the Dutch Central Bank and the Union of Insurers. From the beginning of 2013 the possibility to make use of this 'extra free time' diminished strongly. Only employees who has € 3000,- or more on their savings account are able to make use of it. 

 

Parental leave

Data on (paid) parental of maternity leave are obtained from the Labour Force Survey. Parental or maternity leave only applies to a couple of branches, mainly in the public sector. Since revision 2010 the main source is the monthly insurance policy administration database on wages and social contributions of the Institute for Implementations of Employees' Insurances (UWV).

 

Short time

Short time is a special arrangement for companies with a temporary drop in workload. For this arrangement to get into action, the employer must ask permission from the Ministry of Social Affairs and Employment. If the permission is granted, the company’s employees will work and earn less. The income drop is compensated for by social benefits. Data on short time, up to 2008 a very incidental phenomenon, are obtained from the Ministry. In 2008Q4 a new short time regulation was introduced to avoid foreseen unemployment. In the first quarter of 2009 the short time regulation was used by more companies. In the second quarter of 2009 short time has slowly been taken over by a new part-time unemployment regulation. The part-time unemployment hours are paid out of the unemployment fund for 70% to the companies. These amounts are in the LCI incorporated in the labour costs subsidies. The number of part-time unemployed employees peaked in 2009Q4 en 2010Q1, and was close to zero in 2011Q2.

 

Strikes

The number of days lost by strikes is available on an annual basis by direct surveying (source: Labour Unions and Strikes). The number of employees involved in strikes is also known. The data on strikes may be broken down by section. The strike days are transformed to hours, and allocated to the quarters concerned. In practice, the number of strike hours relative to the number of hours paid is negligible.

 

Holiday (paid leave)

After calculation the number of hours actually work each quarter as described above, one more adjustment had to be made. This is because in the figures calculated above, the number of hours of holiday (paid annual leave) is the same every quarter. The total annual number of hours for holiday is known from the Annual Survey on Employment and Wages. In addition, the quarterly distribution of hours on holiday is taken from the Continual Vacation Survey, where people are asked when they go on holiday. With this fixed distribution (from 2001) the total hours on holiday is redistributed to the four quarters: on average 10% in quarter 1, 24% in quarter 2, 54% in quarter 3 and 12% in quarter 4 (this is not the same for every section). Since revision 2010 this distribution of hours on holiday is not fixed anymore, but based on the Continual Vacation Survey, so small changes are possible in the partitions.

The reason Statistics Netherlands has chosen to base the LCI on the hours actually worked as obtained from the system of Labour accounts, is the following. First of all, the final estimates for these estimates are based on complete coverage in the sources. In using e.g. the Labour Force Survey for direct measurement of hours actually worked, we would have to rely on a 0.5% sample. Furthermore, the hours worked are optimised in the National accounts / Labour accounts system, which guarantees consistency with compensation of employees (and underlying components) and other economic indicators. As compensation of employees and hours of work are components within the LCI, the importance of consistency between the two is evident. There is an additional advantage. The LCI is an economic rather than a social statistic. It is bound to be compared with other economic indicators such as inflation and the development of labour productivity. Guaranteed consistence with the National accounts is therefore important.

 

Quality of ‘hours worked’

In general, the two growth-rates of the LCI and the hours worked move up together: when the hours of worked declines, the LCI-index goes up. The year 2009 shows a clear effect on hours worked by the growing number of ‘short time’. In the years 2008 and 2009 there are a lot of donations to pension funds, these donations add to the effect in the LCI.

 

Calculation of the evolution of total labour costs and hours worked

Eurostat request to provide each quarter the year-to-year rate of change of the NSA for the latest quarter for the (a) total labour cost and (b) number of hours worked, for the sections B-N and B S (see Annexes below). These figures are requested in the quarterly metadata template.

For the calculation of the evolution of total labour costs and hours worked, Statistics Netherlands is using the following method:

1. Sum NSA-Total Labour Costs (TLC) of NACE Rev. 2 sections B-N and B-S for the latest quarter and the same quarter of the previous year.

2. Sum NSA-Hours Worked (HW) of NACE Rev. 2 sections B to N and B-S for the latest quarter and the same quarter of the previous year.

3. The percentage change of the sum of TLC of the current quarter compared with the sum of TLC in the previous year is calculated (B-N and B-S).

4. The percentage change of the sum of HW of the current quarter compared with the sum of HW in the previous year is calculated (B-N and B-S).

LCI figures may differ somewhat from above (TLC% -/- HW%) because the LCI is an weighted index. This effect is not the same each period.

Administrative data

Statistics Netherlands obtain about all data on employment and wages of employees from administrative registers. The administrative registers cover the entire economy and fit statistical purposes.

6.3.5. Model assumption error

See 6.3.4.1.

6.4. Seasonal adjustment

Seasonal adjustment took place with X13 Arima. For the results of Working Day Adjusted and Seasonal adjusted figures is chosen for the indirect method.



Annexes:
LCI_SA template for quality reporting_NL_2022
6.5. Data revision - policy

The complete series of National Accounts results are revised every 5-10 years. The last revision took place in 2018 and is referred to as Revision 2015, after its base year. With regard to the Labour Accounts, the monthly insurance policy administration database on wages and social contributions of the Institute for Implementations of Employees' Insurances (UWV) which is embedded in the Social Statistical Database is the major source for final annual estimates as well as quarterly estimates.

Because the LCI is largely based upon the system of National Accounts (including Labour Accounts), its revision history depends heavily on the National Accounts release policy. The current release policy of the National Accounts is the following. Quarterly estimates are made at t+45 days (flash estimate) and t+90 days (first regular estimate). Annual estimates are made at t+½ year (provisional estimate) and t+1½ years (final estimate). All annual estimates are published on the same day. Publication of annual estimates is accompanied by (re )publication of all corresponding quarterly estimates. In the following, we discuss the consequences for the Labour Cost Index.

The (quarterly) LCI requires publication at t+70. For Statistics Netherlands this implies that the first estimate of a quarter is actually based on the flash estimate of t+45. This estimate is based on limited information and the only NA-data that are published at that time are figures on employment, not on wages or labour costs. The first LCI-estimates for the Netherlands were therefore, up to 2009Q2, confidential. Starting with 2009Q3, new first LCI-estimates for sections B-N and B-S are not indicated as confidential any more (NSA-, SA- and WDA-figures), to satisfy Eurostat-regulations. First-estimates for individual sections are still marked as ‘confidential’ figures. The consequence of this chance, is that first figures about the development of labour costs in the Netherlands are published by Eurostat (about t+70 days), while Statistics Netherlands does not publish these flash-figures. Instead, Statistics Netherlands publish regular figures about three weeks later, in more detail, and based on much better data. Clearly, this is not an ideal situation, but Statistics Netherlands accepts this for the time being.

The National accounts release policy also implies that when the next quarter is published, the t+45 estimates are replaced by the much better t+90 estimates. Furthermore, as the quarters of the three previous years are all improved halfway the year, LCI estimates for those quarters are also changed the next time the LCI is published. This happens at the delivery in September. Because of the time consistency policy of the National Accounts, leaving improved results for what they are is not an option. The state-of-the art estimates form a coherent series: comparing new estimates with estimates that have already been overwritten, may lead to erroneous conclusions.

6.6. Data revision - practice

Reasons for changing figures:

- 7-9-2009: Adjusted figures National accounts (NA 2006 = final).

- 3-9-2010: Adjusted figures National accounts (NA 2007 = final).

- 9-12-2010: New insights about our prime source of information on the yearly number of working days have been processed in our figures. In 2006 a new survey on employment and wages started in the Netherlands. Before we expected the data to be based op 254 working days a year, same as before 2006. For the LCI we have to multiply this number, to take in account the changing number of working days every year. Now we found that the new survey already take account of the changing number of working days. In the new figures the number of working hours decreased in 2008 by 0.4 percent, so the LCI in 2008 increases by about 0.4 percent.

- 7-3-2011: Data for all quarters of 2010 has been updated, because new information has been received. Data on hours worked in 2010Q3 has been changed, because of an occasional error in a formula.

- 8-9-2011: Adjusted figures National accounts (NA 2008 = final). The Dutch LCI is largely based upon the National accounts. Up to this summer, all the figures of the National accounts were based upon NACE Rev. 1.1. For the LCI these figures were translated approximately to NACE Rev. 2. At this time the National accounts changed to NACE Rev. 2, and for the first time official figures based on NACE Rev. 2 came available for the LCI. This transition affects all LCI-figures 2000-2011 (because 2008 = 100). Together with these changes, the number of working days in 2000-2004 has been reconsidered. The affects the annual change in 2005 by -0.4 percent. LCI-figures up to 2008 are now final figures.

- 3-9-2012: Adjusted figures National accounts (NA 2009 = final).

- 6-9-2013: Adjusted figures National accounts (NA 2010 = final).

- 29-8-2014: Revised figures National accounts (NA 2011 = final). New series from 2000 until 2014, after implementation of revision 2010, are used. Main differences in the series since revision 2010 include the addition of; paid parenthood leave for husbands, severance pay in standing right funds, decease benefits, payments by the employer in social funds, illegal employees working for temporary employment agencies, donations to the pension funds by employers and final tax payments. Furthermore, a better quarterly distribution is used in the series for pension funds, they are based on the first month of the year, this flattens the seasonal component for a part in the social securities. Also a better quarterly distribution was implemented with regard to the labour costs subsidies in NACE Rev.2.

- 29-8-2015: Adjusted figures National accounts (NA 2012 = final). In the first quarter of the 2015 the base year changed from 2008 up to 2015.

- 29-8-2016: NA figures for the years 2013 en 2014 reached the final estimate state. For the year 2014 this was an acceleration with one year.

- 29-8-2017: Adjusted figures National accounts (NA 2015 = final).

- 29-8-2018: Adjusted figures National accounts (NA 2016 = final).

- 29-8-2019: Adjusted figures National accounts (NA 2017 = final).

29-8-2020: Adjusted figures National accounts (NA 2018 = final).

29-8-2021: Adjusted figures National accounts (NA 2019 = final).

- 29-8-2022: Adjusted figures National accounts (NA 2020 = final).

- 29-8-2023: Adjusted figures National accounts (NA 2021 = final).

6.6.1. Data revision - average size

Annualy.


7. Timeliness and punctuality Top
7.1. Timeliness

2022Q1: t+ 45 days

2022Q2: t+ 45 days

2022Q3: t+ 45 days

2022Q4: t+ 45 days

7.1.1. Time lag - first result

See above.

7.1.2. Time lag - final result

See above.

7.2. Punctuality

publication within 70 days after the last quarter.

7.2.1. Punctuality - delivery and publication

In time.


8. Coherence and comparability Top
8.1. Comparability - geographical

Not applicable.

8.1.1. Asymmetry for mirror flow statistics - coefficient

Not applicable.

8.2. Comparability - over time

The Dutch National Accounts have a consistent time series for the years 1995-2022. As the LCI is largely based on the National Accounts, comparability between the years in the series from 1996 onwards is guaranteed, apart from subsidies on labour costs.

8.2.1. Length of comparable time series

National accounts 1995-2022.

8.3. Coherence - cross domain

See 8.5

Comparability over NACE sections.

8.4. Coherence - sub annual and annual statistics

Not applicable.

8.5. Coherence - National Accounts

The LCI is as consistent as possible with the National Accounts. As far as wage items are concerned, the only difference between the National Accounts’ compensation of employees and labour costs according the LCI are subsidies on labour costs. This difference arises through a difference in regulation. For the LCI subsidies are subtracted from the labour costs, but ESA 2010 does not prescribe such action for the compensation of employees. Because subsidies decrease in 2005, the labour costs increase more in the LCI-figures than the National Accounts. In 2009 subsidies increase again, mainly because of part-time unemployment hours are paid out of the unemployment fund. In addition, since revision 2010 final taxes are added. This component was missing in previous LCI data series.

 

The LCI’s estimate for hours actually worked starts with the results from the National Accounts’ estimation for hours worked. However, in the calculation of this number of working hours, up to reporting year 2008 the number of working days was fixed every year: 254 days (52 weeks with 5 working days, and 6 days public holidays every year). For the LCI we also took into account the changing number of working days every year, for instance 255 in 2007. Therefore, in 2007 the LCI-number of working hours equals the National Accounts-number of working hours multiplied by 255/254. In 2005 the number of working days decreased by 2 days, compared to the number of working days in the year before; in 2006 the number of workings decreased by 1 day. After 2007, the number of hours actually worked in the LCI and the National accounts have always been the same. Since revision 2010, the number of hours worked are the same as those published in the National Accounts (Labour accounts) for the entire time series because the mentioned flaw in the labour account data was corrected during revision 2010.

 

A final cause of difference between the LCI and the labour costs in the National Accounts refers to the way the LCI is calculated. The LCI is calculated every quarter. However summation of the four hourly labour costs of the LCI (divided by 4) mathematically gives a figure that differ from the real hourly labour costs in that year, calculated as total labour costs that year divided by total hours worked in that year. Finally the LCI is a weighted index.

8.6. Coherence - internal

Not applicable.


9. Accessibility and clarity Top

Statistics Netherlands does not publish the LCI. Eurostat is the only institution that releases the Dutch LCI. Statistic Netherlands prefers the policy that only Eurostat releases Dutch LCI figures.

9.1. Dissemination format - News release

Not applicable.

9.2. Dissemination format - Publications

Statistics Netherland does not publish the Labour Cost Index. Instead it publishes the Labour price index.

Information about the Labour price index (Statistics Netherlands):

 

1. GENERAL INFORMATION

This table provides information on labour price developments, i.e. the development of wage costs per hour worked by employees, corrected for changes in the personnel structure.

Data available from: 2001

Status of the figures: Figures referring to the three most recent years are provisional.

When will new figures become available? New figures are published three to four months after the end of the reference period.

 

2. DEFINITIONS AND EXPLANATION OF SYMBOLS

Labour price index: The development of wage costs per hour worked by employees, corrected for changes in the personnel structure.

Wage costs: The total of wages, social contributions paid by employers and taxes on wage costs minus wage cost subsidies.

Hours worked: The total amount of hours employees actually work. Hours not worked due to holidays, reduction of working hours, illness, etc. are excluded, but hours worked in overtime are included.

Structural effect: The difference between the development of wage costs per hour worked and price of labour.

Employee: A person who has an employment contract with an economic unit to carry out work in return for financial remuneration.

Periods: The figures refer to rolling years; a moving period of twelve months. The results over a period running from January to December are equal to the results of a calendar year.

The index figure '2011 April - 2012 March' represents labour price developments compared to the base year 2010.

The year-on-year change '2011 April - 2012 March' represents the change as a percentages relative to the period April 2010 to March 2011'.

 

3. LINKS TO RELEVANT TABLES AND ARTICLES (you can find the link in the annexes)

 

Labour Accounts publishes figures on compensation of employees on a quarterly basis. These figures vary from the labour price index, because Labour Accounts figures concerning the wage developments are affected by changes in the personnel structure. Furthermore, the Labour Accounts publishes figures earlier. The results from the Labour Accounts can be accessed in the table: Compensation of employees; quarterly   

The labour price index refers to the total wage costs of all employees. Statistics Netherlands also publishes monthly index figures about collectively negotiated wages and the contractual wage costs of full-time employees whose wages are laid down in collective labour agreements (cao): Cao wages, contractual wage costs and working hours;; index (2010=100)

 

4. SOURCES AND METHOD

The labour price index is based on various databases Statistics Netherlands has access to. The main source is the monthly insurance policy administration database on wages and social contributions of the Institute for Implementation of Employees' Insurances (UWV). For the period 2001-2006, job data from the System of social statistical datasets (SSD) were used instead. These integral databases with information on wages and working hours per job are supplemented with data on pension contributions, etc. and data regarding the highest level of education of employees. Thus, information becomes available on wage costs and working hours of employees. Subsequently, these figures are made consistent with the results presented in the Labour Accounts.

The insurance policy administration comprise data on all jobs of employees in the Netherlands. Data on education level are available for almost half of all employees. Data for jobs of employees, of whom the education level is known are weighted against the results for all jobs. These figures are also made consistent with the figures of the Labour Accounts. Because the change in labour cost is weighted per cell, the structure-free labour price index is corrected for changes in the personnel structure.
The index is calculated by weighing together the results regarding wage cost developments per working hour per cell. The weight of the cell is determined by the combination of gender x age group x education level x industrial category x whether or not work with a collective labour agreement.

The survey method for this table can be found in the survey description labour price index

An extensive description of the survey method of the series 2006=100 can be found on the website of Statistics Netherlands: A new statistics on wage costs: the price of labour (Dutch only)

 

9.3. Dissemination format - online database

Not applicable.

9.3.1. Data tables - consultations

Not applicable.

9.4. Dissemination format - microdata access

Not applicable.

9.5. Dissemination format - other

CBS StatLine  

9.6. Documentation on methodology

The LCI in the Netherlands is developed by the Labour Accounts. The Labour Accounts are based on the National Accounts. The methodological documentation is according to the National Accounts.

9.7. Quality management - documentation

Not applicable.

9.7.1. Metadata completeness - rate

Not applicable.

9.7.2. Metadata - consultations

Not applicable.


10. Cost and Burden Top

Not applicable.


11. Confidentiality Top

Figures for earnings and labour costs are not published earlier then quarter t+90 days in the Netherlands.

11.1. Confidentiality - policy

According to Eurostat.

11.2. Confidentiality - data treatment

Confidential figures except B-N, B-S and O-S.


12. Comment Top

Not applicable.


Related metadata Top


Annexes Top
LCI 2021 QR questionnaire on COVID support measures