ROMANIA - NATIONAL INSTITUTE OF STATISTICS (INS)

Demography and Social Statistics

Population and External Migration Statistics

Wages, Labour Cost, Job Vacancies and Education Statistics

National Institute of Statistics (INS)

16 Libertatii Avenue, Bucharest 5,

ROMANIA

See below

The annual quality report for the labour cost index (LCI) presents the main quality criteria, as described by Annex 1 of the Commission Regulation No 1216/2003 of July 2003, implementing Regulation No 450/2003 of the European Parliament and of the Council concerning the labour cost index.

Also, according to the Regulation No 1893/2006 of the European Parliament and of the Council on NACE Rev. 2 classification adopted and published in December 2006, the labour cost index the entire time series 2000 – 2008 were recalculated by NACE Rev.2. Starting with the first quarter 2009 the LCIs are produced and disseminated, at EU and national level also, in accordance with the new classification.

Furthermore, in the same time the base year was changed from 2000 into 2008, as Eurostat requested.

In the first quarter of 2015, the base year was changed from 2008 into 2012, as Eurostat requested, the whole series of data (2000-2014) being recalculated with 2012 as reference year.

In the first quarter of 2019, the base year was changed from 2012 into 2016, as Eurostat requested, the whole series of data (2000-2018) being recalculated with 2016 as reference year.

The LCIs are provided in all labour cost categories:

• LCI_TOT (total labour costs)
• LCI_WAG (wages and salaries)
• LCI_OTH (other labour costs)
• LCI_TXB (total labour costs excluding bonuses)

accompany with the annual weights used for the EU aggregates index calculation:

• WGT_TOT (weights for total labour costs)
• WGT_WAG (weights for wages)
• WGT_OTH (weights for other labour costs)
• WGT_TXB (weights for total labour costs excluding bonuses)

The LCIs are calculated for all B to S NACE Rev.2 sections and requested aggregations (B-N, B-E, B-F, G-N, G-J, K-N, O-S, P-S, B-S).

According to the Council Regulation No 450/2003 concerning the labour cost index

The unit of selection for the data sources was the enterprise defined according to the communitarian rules for enterprises statistics as: “the smallest combination of legal units that is an organisational unit producing goods or services, which benefits from a certain degree of autonomy in decision-making, especially for the allocation of its current resources. An enterprise carries out one or more activities at one or more locations. An enterprise may be a sole legal unit”.

The LCIs are produced exclusively based on the existing surveys, no specific survey has been organised:

• Wages Survey (WS) – carried out monthly in the enterprises and local units (establishments) from all economic activities (A-O according to NACE Rev1.1 until 2008, A-S according to NACE Rev.2 from 2009), irrespective of the ownership sectors. From 2001 onwards, a threshold was introduced (i.e. the business units with less than 4 employees are no longer surveyed).

• Labour Cost Survey (LCS) – carried out annually in the enterprises from all economic activities (A-O according to NACE Rev1.1 until 2007, A-S according to NACE Rev.2 from 2008), irrespective of the ownership sectors and the size class of the enterprise by number of employees.

The sampling frame used for the sample selection for the both surveys (Wages Survey and Labour Cost Survey) was drawn from the Romanian Business Register (REGIS), which contained all enterprises, authorities and organisations as well as their local units that carried out any economic activity irrespective of their size or if they belong to the private or public sector. The Business Register was updated, yearly, on the balance sheets and contains the latest information on each enterprise in the statistical population such as the identification items (unique identification code, address etc.), economic activity codes (NACE Rev.2), number of employees (giving the enterprise size class).

Data are available and published at the national level (NUTS0).

Data according to NACE Rev.2 are available and published starting with the first quarter 2000.

The LCI is calculated with 2016 as reference year.

See below

The LCIs are produced exclusively based on the existing surveys, no specific survey has been organised. The data sources used for the labour cost index are:

• Wages Survey (WS) – carried out monthly in the enterprises and local units (establishments) from all economic activities (A-O according to NACE Rev1.1 until 2008, A-S according to NACE Rev.2 from 2009), irrespective of the ownership sectors. From 2001 onwards, a threshold was introduced (i.e. the business units with less than 4 employees are no longer surveyed). Data are available and published at the national level (NUTS0).This monthly data source provides for LCIs the wages and salaries, the occasional bonuses, the number of employees, the hours worked (the hours worked are available monthly since January 2001) and the employment insurance contributions paid by the employers to the general consolidated budget (CAM) (it is available monthly since January 2018), which are compiled in order to obtain the on quarterly data.

  The WS is carried out in accordance with the Commission Regulation no. 1503/2006 implementing and amending Council Regulation (EC) No 1165/98 concerning short-term statistics as regards definitions of variables, list of variables and frequency of data compilation.

• Labour Cost Survey (LCS) – carried out annually in the enterprises from all economic activities (A-O according to NACE Rev1.1 until 2007, A-S according to NACE Rev.2 from 2008), irrespective of the ownership sectors and the size class of the enterprise by number of employees. Data are available and published at the national and regional level (8 regions NUTS2). The figures for the main indicators such as number of employees, gross and net earnings are also produced at NUTS3 level. This latter data source provides for LCIs the annual proportion of the other labour costs in total wages and salaries. LCS is carried out in accordance with the recommendations and standards of the European Union under the European Parliament and Council Regulation no 530/1999 concerning structural statistics on earnings and labour costs, Commission Regulation no 1726/1999 implementing Council Regulation no 530/1999 concerning structural statistics on earnings and on labour costs as regards the definition and transmission of information on labour costs and Commission Regulation no 1737/2005 amending Commission Regulation no 1726/1999 as regards the definitions and transmission of information on labour costs.

 For the period 1996 – 2004 the Romanian LCIs were calculated and delivered in two ways:

• labour costs per employees (for the whole period) and
• labour costs per hours worked (for 1999-2004, according to the availability of the hours worked).

The old LCIs were calculated with year 2000 as base year.

Starting with year 2005, in accordance with the Council Regulation No 450/2003 requirements the LCIs are calculated as Laspeyres indices (labour costs per hours worked). The back series, starting with 1996 onwards were also, calculated as Laspeyres indices.

Also, from 1996 onwards, the scope of the LCIs was extended, including the activities L, M, N and O (NACE Rev.1.1).

In order to produce the LCIs by NACE Rev.2, in the reference year 2008, the surveys which make up the data sources double data collected, according to NACE Rev.1.1 and NACE Rev.2. The activities were carried out under the grant title of the “Implementation of NACE Rev.2 in labour market statistics” (with regard to the labour cost indices – LCI).

The macro approach was applied for the implementation of the NACE Rev.2 classification in the LCI back data (2000-2008), thus to calculate the absolute data provided by two statistical data sources.

The conversion matrices from the two surveys were separately built for variables “number of employees” and “wages and salaries”, at 2-digit of kind-of-activity unit (KAU).

Thus, starting with first quarter 2009, the LCIs are calculated by NACE Rev.2 sections B to S, having as base year 2008. Also, at this point the entire time series 2000 – 2008 were recalculated by NACE Rev.2 sections B to S and having as base year 2008.

All the data are quarterly transmitted to Eurostat: Total Labour Cost (LCI_TOT), Wages and Salaries (LCI_WAG), Other Labour Costs (LCI_OTH) and Total Labour Cost excluding bonuses (LCI_TXB), in all three forms: Non-Adjusted (NSA), Working-Day Adjusted (WDA) and Working-Day and Seasonally Adjusted (SA).

According to the Council Regulation No 450/2003 starting with 2008, the annual weights for computing the LCI index at EU level are provided, for all economic activities C to O (NACE Rev.1.1), and from 2009, for B to S (NACE Rev.2), as well.

Starting with year 2009 and for back data also, the weights are provided in absolute figures, in accordance with Eurostat requests and needs, and as a result of the Workshop on LCI (November 2008, Luxembourg).

Wages and salaries, occasional bonuses and hours worked data are obtained from the Monthly Wages Survey. In 2022 the results were available 37-42 days after the end of the reference month.

Other labour costs data are obtained from the Annual Labour Cost Survey. The results for year Y are available 9 months after the end of the year Y (end of September year Y+1).

The quarterly aggregates needed for LCI calculation, and the LCIs are calculated in 65 days after the end of the reference quarter.

 Data collection and release frequency 

Self-registration was the method used for both surveys. The variables were collected either on paper questionnaires (posted on the INS website) and transmitted by post or on-line, or by web-based application (http://www.insse.ro/cms/files/Site_eSOP_v2/index.html).

Data for the both surveys (Wages Survey and Labour Cost Survey) are validated at data entry, territorial statistical offices and INS headquarters level.

The LCIs are compiled as Laspeyres indices according to the following methodology:

Labour costs

The wages and salaries, the occasional bonuses, the hours worked and the employment insurance contributions paid by the employers to the general consolidated budget (CAM) (available monthly since January 2018) are obtained from the monthly survey Wages Survey (as described at point 3.1) and are aggregated, in order to obtain the quarterly data.

Until 2017, for the LCIs calculation the quarterly other labour costs are estimated, based on the annual other labour costs and quarterly wages and salaries. Thus, in order to determine (at quarterly level) it is necessary to:

- calculate an annual weight of the other labour costs into the wages and salaries (p):  

p= OTH_Y-1 / WAG_Y-1

   where: p = annual weight of the labour costs into wages and salaries

      OTH_Y-1 = other labour costs for year Y-1

      WAG_Y-1= wages and salaries for year Y-1

- estimate the quarterly other labour costs:

OTH_t = p* WAG_t

where: OTH_t= other labour costs for quarter t, year Y

          WAG_t= wages and salaries for quarter t, year Y

By the time when final data from the Labour Cost Survey are available (month September), the weights corresponding to the previously available year (Y-1) are use. After, revisions are made, using the weights corresponding to the current year (Y).

Starting with year 2018, according to the national legislation provisions in force (GEO No. 79/2017, as subsequently amended and supplemented), the social security contribution and the social health insurance contribution paid by the employer were transferred to the employee; thus, starting with January 2018, these contributions are borne entirely by the employee, and reflected in the gross amount of the nominal earnings (direct labour cost). According to the same legal provisions, the tax obligations owed by the employers are the employment insurance contribution (CAM) (newly introduced) and the social insurance contributions, in the case of harder working conditions or special working conditions (see Annex 1 - Compulsory social contributions and tax - comparative table.doc).

Consequently, starting with year 2018, the (at quarterly level) is determined according to the following steps:

a) The employment insurance contributions paid by the employers to the general consolidated budget (CAM) for the quarters of the reference year Y are obtained from the monthly survey Wages Survey and are aggregated, in order to obtain the quarterly data.

b) The annual weight of the other labour costs into the wages and salaries (p) for the year Y is estimated based on the results of the "Labour Cost Survey in year Y-1", by excluding the contributions that have passed from the employer to the employee from the other labour costs for the reference year Y-1 and their inclusion in the wages and salaries for the reference year Y-1: 

p= OTH_Y-1 / WAG_Y-1

where: p = provisional annual weight of the labour costs into wages and salaries

          OTH_Y-1 = other labour costs for year Y-1

          WAG_Y-1= wages and salaries for year Y-1

Also, from OTH_Y-1  are excluded the social contributions related to the employer which are replaced by the new CAM.

c) Estimating the quarterly other labour costs (provisional data):

OTH_t= CAM_t + WAG_t

where:  OTH_t = other labour costs for quarter t, reference year Y

           WAG_t= wages and salaries for quarter t, reference year Y

           CAM_t = the employment insurance contributions paid by the employers to the general consolidated budget for quarter t, reference year Y

When final data from the Labour Cost Survey in the reference year Y are available (month September year Y+1), the  will be recalculated using the weights corresponding to the reference year Y:

p= OTH_Y / WAG_Y

where:  p = final annual weight of the labour costs into wages and salaries

           OTH_Y = other labour costs for the reference year Y

           WAG_Y = wages and salaries for the reference year Y

The quarterly total labour cost is obtained from the quarterly wages and salaries and other labour costs: 

TOT_t=WAG_t + OTH_t

where: TOT_t = total labour cost for quarter t, year Y

The quarterly total labour cost excluding bonuses is obtained by deducting the corresponding occasional bonuses from the total labour cost.

TXB_t=TOT_t - OCC_t 

where:TXB_t  = total labour cost excluding bonuses for quarter t, year Y

         OCC_t = occasional bonuses for quarter t, year Y

The recalculation of the final data, using the final annual weight of the labour costs into wages and salaries is done for the components OTH, TOT and TXB. 

Hours worked

The indicator “hours worked” used of the LCIs calculation includes all hours actually worked by full-time and part-time employees, according to the working contract (excluding the week-ends, meal breaks, free days for official holidays, vacation, sick leave, technical stoppage non-imputed to the employee etc.), and the overtime.

The hours worked have been collected monthly, since 2001, through the Wages Survey (same source as for wages and salaries), and are computed for obtaining the quarterly data. The annual hours worked have been collected, since 1999, through the Labour Cost Survey.

For year 2000, it was needed to estimate the number of hours worked by quarters, since the indicator was available only as annual amount from Labour Cost Survey. Thus, the hours worked for each quarter of year 2000 were estimated for each economic activity (NACE Rev.1.1), based on:

- the distribution of the number of employees,

- the number of quarterly working days,

- the time series of hours worked collected monthly since 2001,

- the annual number of hours worked.

In 2009, due to the implementation of NACE Rev.2 classification in the LCI back data (2000-2008),  the number of hours worked was calculated using the conversion matrices.

For the period 1996 – 1999 the hours worked were not available from any statistical survey. Thus, under the Programme Phare multi-beneficiary 2004 on the “Improvement of quality for labour and earnings statistics” an estimation method of the hours worked, period 1996 – 1999, was developed, and described as follow:

a. calculation of the number of working days for each quarter 1996-2006, by counting the days according to the back years calendars and subtracting the corresponding number of official non-working days (i.e. Christmas, Easter, national day etc).

b. calculation of the average number of working hours per day by economic activities of NACE Rev.1.1 for each quarter for years 2000-2006.

where,  = average number of working hours per day

            h_it= number of hours worked by all employees

            n_ty = number of working days of quarter t, year y

              = average number of employees

            i = economic activities of NACE Rev.1.1

            t = quarter;

            y = year

c.  estimation of the average number of working hours per day by economic activities of NACE Rev.1.1 for each quarter 1996-1999. For each economic activities of NACE Rev.1.1. and quarter, linear functions of estimation were built for years 1996-1999, depending on the number of working days calculated for 1996-1999 and following similar trend as the average number of working hours per day for quarters 2000-2006.

where,   = average number of working hours per day, by economic activities i of NACE Rev.1.1, for quarter t, years 1996-1999

     n_t96-99 = number of working days, for quarter t, years 1996-1999

      = average number of working hours per day, by economic activities i of NACE Rev.1.1, for quarter t, years 1996-1999

                           i = economic activities of NACE Rev.1.1

                           t = quarter;

 d. calculation of the number of hours worked by all employees for each economic activity of NACE Rev.1.1 and quarters for years 1996-1999.

where, h_it= number of hours worked by all employees

                         = average number of working hours per day

                         n_t = number of working days of quarter t

                         = average number of employees

                         i = economic activities of NACE Rev.1.1

                         t = quarter;

In the scope of the workshop on LCI (November 2008) the volatility of the LCI was detailed investigated. Thus, comparing the series for total labour costs and working time, with the resulting series of LCI, the conclusion was that in the Romanian LCIs case, the higher part of the  volatility is due to the influence of hours worked.

Hourly labour costs

The hourly total labour costs (including and excluding occasional bonuses) and its components (wages and salaries and other labour costs) are obtained by dividing each cost element to the hours worked.

No adjustment is made on statistical data for both surveys (Wages Survey and Labour Cost Survey).

See below

The quality assurance of the LCI is related to the quality of the data sources used for the labour cost index (Wages Survey and Labour Cost Survey).

The quality assessment of the LCI is related to the quality of the data sources used for the labour cost index (Wages Survey and Labour Cost Survey).

See below

At EU level:

The main users of the Romanian LCIs are Eurostat and European Central Bank.

Since 2000, the LCIs have been regularly released to Eurostat, in non-adjusted form (NSA). Starting with the end of 2007, the LCIs are produced and regularly transmitted to Eurostat in working-day (WDA) and working-day and seasonally (SA) adjusted forms (for the entire time series).

At national level:

The main user of the LCIs at national level is the Romanian National Bank.

From year 2002 onwards (with data for year 2001), the LCIs have been annually published in the Romanian Statistical Yearbook in non-adjusted form (NSA) and starting with 2008 (with data for year 2007) also in adjusted forms.

Also, from year 2007 (with data for the 4^th quarter 2005 and all quarters of 2006 as provisional data), the LCIs have been quarterly published in the Monthly Statistical Bulletin in non-adjusted form (NSA) and starting with year 2008 also in adjusted forms.

Starting with year 2008 a quarterly press release is prepared. The LCIs are presented in all three forms: non-adjusted (NSA), working-day adjusted (WDA), working-day and seasonally adjusted (SA).

Starting with year 2010 the LCIs are quarterly released through the INS database (TEMPO), in all three forms: non-adjusted (NSA), working-day adjusted (WDA), working-day and seasonally adjusted (SA), since 2000.

All interested parties have access to the LCIs, either in electronic format (on the INS web-site: press release, TEMPO database, Monthly Statistical Bulletin or Statistical Yearbook www.insse.ro) or on paper (as publication – Monthly Statistical Bulletin or Statistical yearbook). In all three disseminating papers, Statistical Yearbook, Monthly Bulletin and press releases, alongside with the labour cost index a methodological note and a short description of the data sources used are included.

No information is available on the degree to which LCI satisfies user needs.

The data series of LCIs, starting with the first quarter 2009 the labour cost index, are calculated and provided in accordance with the Regulation No 1893/2006 of the European Parliament and of the Council, by NACE Rev. 2 sections and aggregates for all components of the index:

- total labour cost (LCI_TOT),

- wages and salaries (TOT_WAG),

- other labour costs (TOT_OTH),

- total labour costs excluding bonuses (TOT_TXB).

The index series are prepared and delivered in all three forms:

i) non-adjusted,

ii) working-day adjusted,

iii) seasonally and working-day adjusted

100%

See below

The accuracy of the LCI is related to the quality of the data sources used for the labour cost index (Wages Survey and Labour Cost Survey).

Not the case

Not the case

See below

Cover samples for the two data sources used for LCIs calculation:

• Wages Survey – about 23000 establishments (year 2022). From 2001 onwards, a threshold was introduced (i.e. the business units with less than 4 employees are no longer surveyed). Data are available and published at the national level (NUTS0).
• Labour Cost Survey – about 27000 enterprises (year 2021). Data are available and published at the national and regional level (8 regions NUTS2). The figures for the main indicators such as number of employees, gross and net earnings are also produced at NUTS3 level. Starting with the reference year 2017, to improve the reliability of data at county level (NUTS3) and CAEN Rev.2 division level (2 digits), the survey sample was extended by enterprises belonging to the size class of less than 50 employees, for which estimation methods of the statistical indicators from administrative sources were applied ("Statement regarding the payment obligations of social contributions, tax on income and nominal record of insured persons (D112)") (as described at point 6.3.4.1).

In the attached file below are presented the percentages of employees represented in the samples by NACE Rev.2 sections.

Not the case

All units covered by the statistical surveys report information in the administrative sources in accordance with the scope of these sources.

The IT solutions for the two data sources used for LCIs calculation (Wages Survey and Labour Cost Survey) were developed to find out the measurement and processing errors occurred in different stages of the surveys.

The IT solutions allowed performing the data entry and validation at respondent unit level/territorial statistical offices level, as a first checking of the data integrity and correctness. The logical tests are designed to check:

- the primary data from the questionnaires,

- the logical flows and data consistency among the questionnaire chapters,

and have the scope to:

- follow and check the logical flows of the questionnaire,

- correlate data from related chapters of the questionnaire,

- define and check certain limits to which different indicators must belong,

- find out the outliers or non-logical values.

The tests for data integrity check the identification information from the sample of units with the information from respondent files.

Further activities for solving the errors or diminishing the number of errors were carried out at central level:

- data comparability with the previous survey for the main and common variables,

- data comparability between the two data sources (Wages Survey and Labour Cost Survey),

- data imputation from administrative sources in case of unit non-responses,

- data imputation from administrative sources in case of the units added to the survey sample of the Labour Cost Survey to improve the reliability of data at county level (NUTS3) and CAEN Rev.2 division level (2 digits).

The stratified sampling technique is used as sampling method for both data source of LCIs (Monthly Wages Survey and Labour Cost Survey). Main economic activity, size class of the enterprise and region (NUTS2 level) define the sample strata.

In order to compensate the non-responses, the results are adjusted using the HORVITZ-THOMPSON estimator, weighted with the response probability.

The estimation method involves multiplying the value for each sampled business (y_i) by a combination of weights, one being outlier weight (w_ih), one resulting from the sample design (a_ih). An outlier weight is computed as a Windsor weight. The normal score, which determines the outlier units, is computed taking into account the stratification used in sample design.

In order to perform the adjustment of non-response is computed a weight resulting from the sample design, as the sample weight adjusted by the inverse of response probability:

        
                                                  N_h = sample frame size of stratum h
                                                  n_h = sample size of stratum h
                                                  m_h = number of responses in stratum h

So, for each response unit the final weight is: 

Share units with data (%)

^*) quarterly share units with data are calculated as simple averages of the monthly share units with data

^**) Including imputed units from administrative data

 For the calculation of the share units with data the following types of responses are taken into account:

• response (after estimation by imputation procedures),
• other unit responding on behalf of the selected ones.

Not the case

See below

Starting with year 2012, in order to improve the quality of the results and to increase the overall response rate on the monthly wages survey and annual labour cost survey, estimation methods were applied by imputing missing data units in statistical surveys which reported data in administrative sources for the reference month / year.

The administrative data sources used are provided by the Ministry of Finance (Unique Fiscal Form and Social Security Register).The selections were done for each legal unit (fiscal code), for the number of employees, the gross earnings paid to employees, the employees’ working time, the indirect costs of the employers in accordance with the types of insured persons.

Imputation rate (%)

^*) quarterly imputation rates are calculated as simple averages of the monthly imputation rates.

The imputation methods were applied to the units which had in the statistical surveys the following causes of non-response:

• refusal units;
• unidentified units,
• units whose the contact was not established;
• dormant/ceased units at the end of the reference period and reporting data in the administrative sources for the reference month/year.

In the reference year 2021, to improve the reliability of data at county level (NUTS3) and CAEN Rev.2 division level (2 digits), the survey sample was extended by about 17500 economic agents belonging to the size class of less than 50 employees, for which estimation methods of the statistical indicators from administrative sources were applied ("Statement regarding the payment obligations of social contributions, tax on income and nominal record of insured persons (D112)").

Not the case

The adjustment was done by the regression method, in accordance with the provisions of the European Parliament and Council Regulation no. 450/2003 concerning the labour cost index. For the adjustment, the DEMETRA software package (the TRAMO/SEATS method) was used, which estimates the effect of the working days differently from one quarter to another and the calendar effect (leap year and other national holidays) and identifies and corrects the outliers (occasional, transitory or permanent changes in level). Starting with the third quarter of 2016, for the adjustment, the JDEMETRA+ v2.1 software package (the TRAMO/SEATS method) was used.

The working days adjusted series were obtained by removing such effects from the non-adjusted series by using certain coefficients of correction, set-up according to the regression model used (additive or multiplicative). The adjustment was done by the indirect method, that is by applying the adjustment method at lower levels (over the components of index), the adjusted index being calculated from adjusted components.

The estimation of the non-observed components: the trend-cycle, the seasonality and the irregular component is done by the SEATS programme on the basis of ARIMA models. The seasonally adjusted series were obtained by removing the seasonal component from the working days adjusted series.

The LCIs (non-adjusted data) are revised once per year in the 3^rd quarter for the last six provisional quarters.

Generally, a revision of the LCIs is made annually (in the 3^rd quarter), when the results of year Y from Labour Cost Survey become available (month September). By then, the quarterly LCI_OTH (other labour costs component) and LCI_TOT (total index) are calculated using the proportion of other labour costs in wages and salaries from the previous available year (Y-1). The revisions are made for all provisional quarters.

The LCIs for year (Y+1) still remains provisional, using the proportion of other labour costs in wages and salaries from the previous available year Y.

Because the LCI_WAG (wages and salaries component) contains only elements provided by the Monthly Wages Survey, they are not revised and are considered as final, from the first calculation.

The attached file Growth rate revision contains a comparison between the provisional and the final data of LCIs (in unadjusted form) for year 2021, expressed in growth rates.

The quality assessment of the LCI is related to the quality of the data sources used for the labour cost index (Wages Survey and Labour Cost Survey).

Deadline and transmission of LCIs:

No changes in the data transmission are foreseen in the nearest future. All the deadlines, either for LCIs data sources results, or for LCIs will be kept as described above.

Since Q3 2019, Romania participates to the pilot data collection of flash estimates for the Labour Cost Index, in accordance with Eurostat requirements and deadlines.

Transmission of LCIs – first results:

Transmission of LCIs – final results:

Generally, a revision of the LCIs is made annually (in the 3^rd quarter), when the results of year Y from Labour Cost Survey become available (month) and LCI_TOT (total index) are calculated using the proportion of other labour costs in wages and salaries from the previous available year (Y-1). The revisions are made for all provisional quarters.

The LCIs for year (Y+1) still remains provisional, using the proportion of other labour costs in wages and salaries from the previous available year Y.

Because the LCI_WAG (wages and salaries component) contains only elements provided by the Monthly Wages Survey, they are not revised and are considered as final, from the first calculation.

No transmission delays were recorded since the first transmission of the new LCIs data.

No transmission delays were recorded since the first transmission of the new LCIs data.

The LCIs are calculated in accordance with the Council Regulation No 450/2003. The time series are in compliance with the regulation:

- Laspeyres indices,

- calculated as labour cost per hour worked,

- for all B to S NACE Rev.2 sections and requested aggregations (B-N, B-E, B-F, G-N, G-J, K-N, O-S, P-S, B-S), starting with 2009 and back time series 2000 – 2008, with 2008 reference year,

- provided in all labour cost categories:

• LCI_TOT (total labour costs)
• LCI_WAG (wages and salaries)
• LCI_OTH (other labour costs)
• LCI_TXB (total labour costs excluding bonuses)

accompany with the annual weights used for the EU aggregates index calculation:

• WGT_TOT (weights for total labour costs)
• WGT_WAG (weights for wages)
• WGT_OTH (weights for other labour costs)
• WGT_TXB (weights for total labour costs excluding bonuses)

- transmitted in the standard format, as Gesmes files, via eDAMIS. Starting with Q4 2014 data were sent using the new SDMX format, as XML files.

The data for LCI_TOT and LCI_TXB are comparable for the entire period (Q1 2000 – present by NACE Rev.2), using the same concepts.

The data for LCI_WAG and LCI_OTH are comparable for the period 2000-2017 (by NACE Rev.2), using the same concepts. Starting with the 1st quarter 2018, the LCI_WAG and LCI_OTH are no longer comparable to the data series prior to 2018.

According to the national legislation provisions in force (GEO No. 79/2017, as subsequently amended and supplemented), the social security contribution and the social health insurance contribution paid by the employer were transferred to the employee; thus, starting with January 2018, these contributions are borne entirely by the employee, and reflected in the gross amount of the nominal earnings (direct labour cost).

Consequently, the data series for the two components of the quarterly labour cost index: “direct costs (wages and salaries)” and “other costs (non-wages costs)”, are no longer comparable starting with the 1^st quarter 2018 to the data series prior to 2018 (see Annex 1 - Compulsory social contributions and tax - comparative table.doc).

These legal provisions do not affect the data series comparability for the " Total labour cost index” (LCI_TOT şi LCI_TXB).

For the calculation of the working-day (WDA) and working-day and seasonally (SA) adjusted forms of the LCIs the same parameters are kept during a year.

The seasonal decomposition is applied to the direct costs, indirect costs and hours worked and then the indices are aggregated (indirect approach). The re-evaluation of the adjusted time series is made once a year, at the same time with the non-adjusted data revisions (3^rd quarter every year).

Not the case

Not the case

See below

The data for LCI_TOT and LCI_TXB are comparable for the entire period (Q1 2000 – present by NACE Rev.2), using the same concepts.

The data for LCI_WAG and LCI_OTH are comparable for the period 2000-2017 (by NACE Rev.2), using the same concepts. Starting with the 1st quarter 2018, the LCI_WAG and LCI_OTH are no longer comparable to the data series prior to 2018.

According to the national legislation provisions in force (GEO No. 79/2017, as subsequently amended and supplemented), the social security contribution and the social health insurance contribution paid by the employer were transferred to the employee; thus, starting with January 2018, these contributions are borne entirely by the employee, and reflected in the gross amount of the nominal earnings (direct labour cost).

Consequently, the data series for the two components of the quarterly labour cost index: “direct costs (wages and salaries)” and “other costs (non-wages costs)”, are no longer comparable starting with the 1^st quarter 2018 to the data series prior to 2018 (see Annex 1 - Compulsory social contributions and tax - comparative table.doc).

These legal provisions do not affect the data series comparability for the " Total labour cost index” (LCI_TOT şi LCI_TXB).

In relation to the situation caused by the COVID-19 pandemic, the infra-annual, statistical data may present a lower degree of reliability, accuracy, completeness and comparability, as a result of the difficulties arising from the application of economic and social measures, determined by the declaration of state emergency throughout Romania. These difficulties were mainly determined by heavy access to the financial and accounting documents, caused frequently by the sudden closure of certain economic and social units, by not completing in due time of the respective documents, by relaxation of legal deadlines for submitting tax documents to the related institutions, by temporarily suspending the activity for a significant number of economic and social units or even by ceasing their activity, in some cases.

In the hourly labour cost are also included the amounts paid to the employees for technical unemployment, borne by the employer from its own funds.

Subsidies granted to employers (according to legal provisions) from the state budget for the payment of the benefits received by the employees during the temporary suspension of their labour contract, at the employer initiative (technical unemployment), parents during the days off for childcare, in situations of temporary closure of educational institutions and employees whose working hours has been temporarily reduced (the difference between the gross basic salary stipulated in the individual labour contract  and the gross basic salary related to the hours actually worked as a result of the hours reduction) were estimated based on administrative data and deducted from the hourly labour cost.

Furthermore, the indicators are affected by the evolution of the hours actually worked.

The data are comparable for all NACE Rev.2 sections using the same concepts and calculation methods.

The LCIs is calculated every quarter using the same concepts and calculation methods.

The comparison between the compensation of employees, expressed per hour worked, shows some differences between Labour Cost Survey and National Account, due to the different coverage.

Main data sources for the National Accounts, by NACE sections are:

- Accounting statements of financial,

- Accounting statements of non-profit institutions serving households,

- Execution of state budget,

- Structural Business Survey ,

- Labour Force Survey (for employment and hours worked data),

- Declaration on global income of self-employed persons and family associations.

 Apart from the clear difference in terms of indicators definitions, coverage and the data collection procedures between LFS – household survey (data source for NA) and LCS and WS – business surveys (data sources for LCI), the main reasons for the discrepancies between the figures provided by the two data sources are:

- the proportion of informal sector and black market in Romania, and self-employed persons that are covered only by LFS – and which are used in NA.

- the business surveys do not cover employees of other categories of employers, such as private organizations (trade unions, parties, professional unions/employers' associations, non-profit institutions, religious organisations, owners’/parents’ associations), as well as private entrepreneurs (authorized persons, individual enterprises, family businesses, liberal professions).

- the hours worked from LFS, based on the self-declaration of the household members differ from the hours worked, collected through business surveys.

- specific estimation methods used in NA: for example, NA uses concept of actual working hours, in full and part time jobs in main and secondary jobs; moreover, total hours-worked from LFS (main and secondary activities) are adjusted for hours not worked by women in parental leave.

Furthermore, compared with data sources of LCI, there are sections that include in NA persons with other kind of contracts (i.e. insurance agents, field agents), that are not paid from the salary budget.

The coverage of section O – public administration is different. In NA armed forces are included. In comparison with data sources of LCI, section S includes in NA data on trade unions, political parties, non-profit institutions serving households etc.

Data from National Accounts were revised for year 2020 and are now definitive, for year 2021 and for year 2022 are still provisional.

In 2019, the increases of the hourly labour cost in all NACE Rev.2 sections were mainly due to the application of the legal provisions in force regarding the increase the minimum gross salary guaranteed in payment (from 1900 RON 2018 to 2080 RON in 2019). In the case of personnel employed in positions for which the level of higher education is requires, with a work experience of at least one year in the field of higher education, the minimum gross salary guaranteed in payment was increased from 1900 RON in 2018 to 2350 RON in 2019.

Also, for the period 1 January 2019 - 31 December 2028, in accordance with the legal provisions in force (EO No. 114/2018 setting up measures in public investments field and some fiscal-budgetary measures, modification and completion of some normative acts and extension of some deadline), in the field of constructions the minimum gross salary guaranteed in payment was increased to 3000 RON.

In the budgetary sector (O, P, Q, and partly R) the increases of the hourly labour cost were also due to the application of the legal provisions in force.

In 2020, the increases of the hourly labour cost in the majority of NACE Rev.2 sections were mainly due to the application of the legal provisions in force regarding the increase the minimum gross salary guaranteed in payment (from 2080 RON 2019 to 2230 RON in 2020). In section I, the decrease of the hourly labour cost was caused by the pandemic situation, the economic units were strongly affected by the suspending/ceasing of their related activities, by decreasing of the hours actually worked in the context of the COVID-19 pandemic, but also by reducing their direct costs, caused by technical unemployment or lower receipts during the state of alert.

In 2021, the increases of the hourly labour cost in the majority of NACE Rev.2 sections were mainly due to the application of the legal provisions in force regarding the increase the minimum gross salary guaranteed in payment (from 2230 RON 2020 to 2300 RON in 2021).

In 2022, the increases of the hourly labour cost in the majority of NACE Rev.2 sections were mainly due to the application of the legal provisions in force regarding the increase the minimum gross salary guaranteed in payment (from 2300 RON 2021 to 2550 RON in 2022).

Not the case

The LCIs are sent on quarterly basis to Eurostat, in electronic format, as XML files, transmitted via eDAMIS. Starting with year 2007 all LCIs transmissions are followed by metadata in the standard format provided by Eurostat. Thus, all changes in the methodology or data trends are explained and the results can be interpreted in a clearer way. Starting with the transmission of the 3rd quarter 2007, LCIs are presented in all three forms (NSA, SA, WDA), according to the regulation requests. The metadata contain information on the adjustment methods applied.

Starting with Q4 2014 data were sent using the new SDMX format, as XML files.

At national level, the LCIs have been disseminated as follows:

- published annually in the Romanian Statistical Yearbook since 2002 (for year 2001), in NSA form and from 2008 (with data for year 2007) in SA and WDA forms also, including metadata;

- published monthly in the Monthly Statistical Bulletin since 2007 in NSA form (starting with 4th quarter 2005) and since 2008 in SA and WDA forms also, including metadata;

- quarterly press release (starting with 4th quarter 2007), including metadata, one day after data transmission to Eurostat;

- quarterly uploaded of the INS database (TEMPO), including metadata.

Presented below and in connection with the accessibility and clarity of the results of the two data sources, which compose the LCIs these are disseminated as:

- monthly press release for data concerning the average monthly gross and net earnings by economic activities (WS);

- monthly, for data concerning the number of employees, average monthly gross and net earnings, average hourly gross and net earnings, by economic activities which are published in the “Monthly Statistical Bulletin (WS)”;

- annual press release for data concerning the labour costs by economic activities (LCS);

- annual, a detailed analysis of the data concerning the number of employees, average gross and net earnings, labour costs and the structure of labour costs, by various breakdowns: economic activities, regions, size classes, ownership types etc, data which are published in a publication called “Wages and Labour Cost in year (LCS)”.

- annual, time series concerning the number of employees, average gross and net earnings, average labour costs, structure of labour costs and labour cost indices which are published in the Romanian Statistical Yearbook (LCS).

Quarterly press release (starting with 4th quarter 2007), including metadata (T+65 days).

https://insse.ro/cms/en/comunicate-de-presa-view

- Published annually in the Romanian Statistical Yearbook since 2002 (for year 2001), in NSA form and from 2008 (with data for year 2007) in SA and WDA forms also, including metadata;

- Published quarterly in the Monthly Statistical Bulletin since 2007 in NSA form (starting with 4^th quarter 2005) and since 2008 in SA and WDA forms also, including metadata.

- Quarterly uploaded of the INS database (TEMPO), including metadata.

http://statistici.insse.ro:8077/tempo-online/#/pages/tables/insse-table  

Not the case

Not the case

Not the case

Metadata and methodological notes are included in all LCIs releases.

The quality indicators are calculated taking into account Eurostat defined methodology, in accordance with the following quality criteria: relevance, accuracy, timeliness and punctuality, accessibility and clarity, comparability, consistency, and completeness.

100%

No information is available. 

Due to the fact that the LCI is not an independent survey it does not make any burden for the respondents.

See below

All statistics collected and published by INS are governed by the statistical Law no. 226/2009 regarding the organisation of official statistics, published in Romania's Official Journal First part, no. 397/11.06.2009, with further amendments. The Law specifies that: the official statistical services are authorised to ask for and receive free of charge statistical data and information from all natural and legal persons who are located, hold any kind of capital or carry out any type of activity on the Romanian territory.

Also under the provision of this law, INS cannot publish, or otherwise make available to one individual or organisation, statistics that could enable the identification of data for any individual person or entity.

INS has been repeatedly and publicly recognised by the government as fully intellectually independent: it decides by itself which data to collect, which methodology to use, and which results, methodological notes and commentaries are published.

The most important aspects on the organisation of the official statistics in Romanian are posted on the National Institute of Statistics Internet website (http://www.insse.ro). Copies of the statistical laws are available in Romanian from the library of the National Institute of Statistics, 16, Libertatii Avenue, Bucharest, District 5.

The level of aggregation for LCI does not require confidentiality treatment.

None