National Institute of Statistics - Romania

Population and External Migration Statistics

Wages, Labour Cost, Job Vacancies and Education Statistics

National Institute of Statistics (INS)

16 Libertăţii Avenue., Bucharest, District 5, ROMÂNIA

See below

Labour Cost Survey (LCS)is a business statistical sample survey carried out at national level annually 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 and Commission Regulation no 1737/2005 amending Commission Regulation no 1726/1999 as regards the definitions and transmission of information on labour costs. LCS was implemented and carried out for the first time at the national level in 1994.

The main objective of the survey is to obtain the necessary information to determine the average number of employees, the average earnings achieved, as well as the level, the structure and the evolution of the labour cost.

This complex survey provides to the users the elements needed to perform analyses on the evolution of the different components of labour cost and the correlations between them, while providing the necessary elements for calculating the gross and net size, monthly and hourly, of earnings structured by activities of the national economy, forms of ownership, size classes of enterprises, legal forms, gender, macro-regions, development regions and counties.

The survey organization and data processing are performed in order to develop and fulfil the national statistical information necessary for developing strategies and policies on labour cost and to ensure comparability of statistical indicators provided by all EU countries.

Standard classifications used:

• Classification of Activities in the National Economy (CANE Rev. 2), harmonized with the European classification in the field (NACE Rev. 2);
• The size classes of enterprises correspond to the size classes described in the Council Regulation no 530/1999 concerning structural statistics on earnings and labour costs;
• Nomenclature of territorial units for statistics (NUTS 2013) classification for the macro-region level (NUTS1).

Labour Cost Survey covers all economic sectors (section A to S, except section T according to NACE rev.2) at national level. In section O are not included armed forces and similar staff (Ministry of National Defence, Ministry of Administration and Interior, Romanian Intelligence Service etc.). According to the regulations, sections B to S were transmitted to Eurostat.

The concepts and definitions of Labour cost survey 2020 variables were developed and adopted in accordance with European standards (Commission Regulation (EC) no 1737/2005 amending Commission Regulation no 1726/1999 as regards the definitions and transmission of information on labour costs, but also taking into account the national legislation and features.

The unit of selection 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”.

Taking into account the headquarters of the enterprise according to the situations in which they fall, they can be:

- units operating in a single locality in the county declared on the registration certificate;

- units operating in several localities in the county declared on the registration certificate;

- units operating in a single county, other than the one stated in the registration certificate;

- units operating in several counties (inter-county activity).

The last three categories of units provide data in an annex questionnaire for all local units in the territory.

The Romanian Business Register (REGIS) was used as a sampling frame. The Business Register was designed and implemented based on the administrative files and statistical sources in addition. The main administrative source of data for REGIS is the Fiscal Register. The Trade Register is used as a consultation data source in order to improve the quality of the register. Other files used as source of data for the REGIS in Romania are: Balance Sheet files, VAT files, REGIS survey for the new enterprises regarding their main activity and size and so on, feedback from other surveys, used as consultation data sources for improving the quality of the register data.

According to the Council Regulations, REGIS contains the following types of statistical units: legal unit, enterprise, and local unit. All the enterprises having the main activity in the section A to S of NACE Rev.2, whatever their size (number of employees or turnover) are covered (except armed forces and similar staff).

The Romanian Business Register contains all enterprises, authorities and organisations as well as their local units in Romania that carry out any economic activity irrespective of their size or if they belong to the private or public sector. There are covered the following institutional sectors:

• o Non-financial corporate and quasi-corporate enterprises
• o Central and local administration
• o Social security institutions and private non-profit institutions serving households

In respect to the budgetary institutions and public administration REGIS is the most complete register in Romania, based on Official Journal and the collaboration with many administration institutions.

The sampling frame for the Labour Cost Survey was selected from the REGIS and comprises: all enterprises created before the reference year, which were still active and belonging to the statistical population of interest, all new enterprises created during the reference year, which were still active and belonging to the statistical population of interest.

Labour Cost Survey data are available and published at the national level (NUTS0), macro regions (NUTS1), development regions (NUTS2) and county level (NUTS3)[1]. The micro data files transmitted to Eurostat are coded at NUTS1 level (as the regulation requests).

Labour Cost Survey data are available every year, starting with 1994 at national level and every four years starting with 2000 (2000, 2004, 2008, 2012, 2016 and 2020) at EU level.

Not the case

See below

Labour Cost Survey is a business statistical survey.

Labour Cost Survey is carried out every year, starting with 1994 at national level and every four years starting with 2000 (2000, 2004, 2008, 2012, 2016 and 2020) at EU level.

The method used for Labour Cost Survey data collection was self-registration.

The variables were collected on-line (for about 47% of the respondent units) using a web based application http://www.insse.ro/cms/files/Site_eSOP_v2/index.html or collected on paper questionnaires (posted,  for the most recent reference year, on the INS website http://www.insse.ro/cms/en/content/statistics-earnings) and transmitted by post/email to territorial statistical offices.

If completed on line, the data were collected until 19.03.2021.

If completed on paper, the data were collected until 15.02.2021.

The survey tools consist of the main questionnaire and an annex. Besides the chapters for collecting statistical information, the questionnaires also contain methodological explanations on the concepts, definitions and scope of the required indicators as well as instructions on how to fill in the data.
The structure of the labour cost survey questionnaire is as follows:

Unit identification data (unit name, SIRUTA code, Unique Identification Code, type of ownership, legal form, main activity code class NACE Rev.2, number of counties and number of localities in which the unit operates).

Chapter I - Average number of employees (excluding apprentices) and working time in the reference year - for the main activity and each of the secondary activities of the unit, for the total number of employees and separately for women, the following indicators are recorded:

-          the number of employees at the end of the year;

-          the average number of full-time, part-time and average full-time equivalent employees;

-          the total hours actually worked by all full-time employees, respectively by all part-time employees;

-          the total hours paid but not worked (excluding temporary work incapacity) corresponding to full-time employees, respectively to part-time employees, separately for hours paid by the employer and hours not paid by the employer;

-          the total hours paid but not worked due to temporary work incapacity, corresponding to full-time employees, respectively to part-time employees, separately for hours paid by the employer and hours not paid by the employer.

Chapter II - Gross amounts paid (excluding apprentices) in the reference year - for the main activity and each of the secondary activities of the unit for the total number of employees and women, the following indicators are recorded:

-          gross amounts paid from salary funds and/or other funds (including bonuses, payments in kind and cash aids):

• gross amounts paid for the time actually worked, of which: bonuses and other benefits of which: occasional bonuses);
• gross amounts paid for the time not worked, of which: for temporary work incapacity, respectively for work related stoppages;
• payments in kind and cash aids;
• back-dated paid arrears;
• gross amounts paid from the net profit;
• gross amounts paid from other funds;
• gross amounts paid for temporary work incapacity (excluding sums for salary funds) from the Unique National Health Insurance Fund and from the Work-Related Accidents and Occupational Diseases Insurance Budget;

-          social security contributions, respectively social health insurance contributions paid by the employees;

-          taxes related to gross amounts paid.

Chapter III - Other categories of persons not included in Chapters I and II - are collected for:

-          apprentices, respectively employees working abroad (total, of which for women) - the average number, hours worked and paid time, but not worked, gross amounts paid, individual contribution for: social security contributions, social health insurance contributions, tax on the gross amounts paid;

-          gross amounts paid to board members, members of county, local councils and members of the audit board.

Chapter IV - Other labour costs incurred by the unit in the reference year - includes the amounts paid by the employer throughout the year for employees and separately for apprentices, by components of indirect labour costs. This chapter also includes the amounts paid from the state budget to the employer for the stimulation of employment, as well as those related to the situation caused by the COVID-19 pandemic and the state emergency/alert.

Annex contains in the first three chapters the indicators that are found in the main questionnaire (less the gross amounts paid to the members of the boards of directors, the members of the county and local councils), members of the audit board and in last chapter information on the distribution by economic activities of the average number of employees (excluding apprentices) from the localities (municipalities, towns, communes) in which the sub-units are located.

Detailed explanatory notes containing the definitions of the variables were annexed. Generally, the respondents were guided by the statisticians from the territorial statistical offices and in some cases, even assisted by them in how to fill in the questionnaires.

The IT solution for the Labour Cost Survey was developed for the web portal (eSOP) to detect the measurement and data processing errors. The application was designed for on-line data collection and validation.

The IT solution allowed performing on-line data entry and validation at unit level. Also, the IT solution allowed to perform data entry and validation for questionnaires received on paper by post/email at county level (42 counties in total – NUTS3 level). The same application was used for data entry at respondent unit level and also for data validation at territorial statistical level and central level (INS headquarters - Bucharest).

Since 1994, when first Labour Cost Survey was performed in Romania, the largest part of the respondents is the same, especially the medium and big enterprises which are exhaustively surveyed each year. Thus, a certain routine and experience in respect of variables content occurred during the time.

The explanatory notes provided together with the questionnaires contain clear and detailed references for all cost variables. Generally, no variable related to the labour costs posed special problems. However, in the context of the situation caused by the COVID-19 pandemic and the state emergency/alert, as well as in view of the normative acts issued in this respect, additional methodological clarifications were needed with reference to certain indicators related to the statistical survey.

After validation, Labour Cost Survey data were analysed and corrected where necessary. In order to provide more accurate and reliable data comparisons among variables and/or with other data sources were made.

At national level Labour Cost Survey data were tabulated using Excel tables. For micro data transmission to Eurostat automatic codification of the national variables into the standard format was performed.

Not the case

See below

The quality of the Labour Cost Survey data is guaranteed in accordance with the ESS Code of Practice for each stage of the survey organisation and carrying out.

The questionnaire design, the detailed explanatory notes and the IT solutions developed had as result complete and of good quality data.

In order to improve the quality estimates and to increase the overall response rate, estimation methods were applied, by imputing the missing data from the statistical survey and which reported data in the administrative sources.

In addition, in order to improve the reliability of data at county level (NUTS3) and NACE Rev.2 division (2 digits), the survey sample was extended to enterprises belonging to the size class less than 50 employees, for which estimation methods for obtaining the statistical indicators from administrative sources were applied.

All the standard statistical quality criteria are met (i.e. users’ needs satisfied based on data usefulness and timeliness; various dissemination formats and breakdowns; national and Eurostat dissemination timetable respected).

The main Labour Cost Survey data users may be grouped as following:

1. internal users:

• governmental bodies: Ministry of Labour and Social Protection, Ministry of Public Finances, National Commission for Strategy and Prognosis, National Agency for Employment, Ministry of Education, Ministry of Health;
• employers and employers’ associations;
• trade unions;
• professional associations;
• research institutes and universities: National Institute for Scientific Research in the Field of Labour and Social Protection, Institute of National Economy, National Institute for Economic Research, Institute of Educational Sciences, Romanian Academy, Academy of Economic Studies etc.;
• mass-media;
• students, doctorates.

2. external users:

• European Union and international organisations: Eurostat, ILO, OECD, UNDP, World Bank, IMF;
• foreign research institutes;
• foreign employers.

1. internal users:

The Labour Cost Survey outcomes, in relation with the information provided by other surveys are used by policy makers in establishing the actions and measures for economic development strategies as well as for implementing the programs on active measures for reducing the unemployment and on remuneration system.

• Ministry of Labour and Social Protection and Ministry of Public Finances are interested in the structure of total labour costs and of the direct costs in relation to the policies for improvements of the net remuneration by reducing the taxes and the compulsory contributions paid by the employee and by the employer.
• Same Ministries together with the National Commission for Strategy and Prognosis pay a special attention to the structure of indirect labour costs. Several strategies were already applied for reducing some contributions that the enterprises have to pay by creating and increasing in exchange the number of jobs within the unit.
• Ministry of Labour and Social Protection, Ministry of Public Finances and National Commission for Strategy and Prognosis also analyse the Labour Cost Survey data provided by regions (NUTS3). The information is used to measure the development level of different regions and to build up the strategies of supporting and improving the economic and social welfare of the poorest areas.
• Based on the Labour Cost Survey results of the last years, Ministry of Labour and Social Protection and National Agency for Employment have developed and implemented special programs with the aim of unemployment decreasing by offering special reductions on taxation and providing subsidies to the enterprises that would employ unemployed persons.
• The employers that employed graduates received special advantages (legal acts entered into force proposed by Ministry of National Education).
• National Agency for Employment has a high interest on the employers’ expenses for vocational training as share of indirect costs, in order to improve the programs in this area. The aim is to reach a higher qualification of the existing labour force (instead of employing directly high educated staff), adequate to the high technologies and innovations.
• The labour cost level and structure are of interest when negotiations with trade unions are held. Labour Cost Survey results are key elements for the negotiation of collective agreements in relation not only with the direct remuneration, but as share of payments in kind and other advantages, pension scheme, social and health insurance, programs for vocational training (reconversion of the redundant employees, improvement of level of qualification etc.).
• Employers, employers’ associations and professional associations carry out several comparative analyses of the labour cost among economic activities, ownership sectors and across the country.
• Research institutes and universities are interested in producing analysis on the labour cost level and structure by economic activities, ownership sectors, regional levels (on their own estimations); comparisons with other countries (either EU or non-EU member states).

 2. external users:

• European Union and international organisations are usually expressing their needs by specific regulations and agreements and through the working groups held with a given periodicity (EUROSTAT) and through international meetings and regular (for updating of databases) and ad hoc requests sent to INS (ILO, OECD, World Bank);
• Foreign research institutes formulate their needs through the requests sent to INS, data being provided upon availability;
• Foreign employers (investors) are interested on labour cost level by economic activities for public and private sectors; upon request different levels of aggregated data are disseminated.

1. internal users:

Before finalising a significant revision of the survey tools, the questionnaire and explanatory notes are sent to be studied by the main users: Ministry of Labour and Social Protection, Ministry of Public Finances and National Commission for Strategy and Prognosis. After few weeks, agreed in advance, meetings are held and each item and variable are discussed.

Based on their comments and observations different changes (variables added, breakdowns of variables, updates of the legislation in force etc.) are operated before drafting the final version of the questionnaire and explanatory notes.

In Romania, the official statistics is under the responsibility of National Institute of Statistics (INS) but, in order to ensure the objective, transparent and scientific, character of the methodologies, indicators and classifications used in statistics, the Council of Co-ordinating the Statistical Activity is established.

The Council is composed by representatives of:

• Romanian Academy,
• specialised higher education system and research,
• ministries and other specialised bodies sub-ordinate to the Government,
• Romanian National Bank,
• trade unions,
• employers’ associations,
• mass-media,
• professional associations.

The Council representatives meet in working groups by statistical fields quarterly or more frequently when necessary. During these meetings, the National Institute of Statistics receives strong feed-back from the users in terms of results already disseminated (including the level of details, breakdowns etc.) and requests for further needed information to be included in next statistical inquiries.

 2. external users:

• European Union and international organisations: data are sent according to the format requested; when different levels of aggregations are asked, if it is possible, data are processed accordingly or, if not, the most appropriate are given with the needed explanations;
• Foreign research institutes: depending on their requests, either data are sent in the available format or are prepared to fulfil as much as possible users’ needs;
• Foreign employers (investors): most of their requests are satisfied by the available data.

The below publication (available only in Romanian language) presents the way in which the statistical data produced and the methodological information of the INS meet the information needs of the various user categories.

https://insse.ro/cms/en/content/analysis-users-satisfaction-statistical-data

According to the Commission Regulation no.1737/2005 (amending the Commission Regulation no.1726/1999) as regards the definition and transmission of information on labour costs, all EU member states had to conduct the Labour Cost Survey (LCS) in 2020, collecting and providing to Eurostat a number of 45 variables (36 mandatory and 9 optional), distributed by:

• Table A: national data by economic activities at section and division level of NACE Rev.2, for enterprises with 10 or more employees,
• Table B: national data by economic activities at section and division level of NACE Rev.2 and 6 size classes of the enterprises (1-9, 10-49, 50-249, 250-499, 500-999, 1000+ employees),
• Table C: regional data by economic activities at section and division level of NACE Rev.2 and 4 macro-regions at NUTS1 level, for enterprises with 10 or more employees,

-        The mandatory variable foreseen by the regulation D1112 (Payments to employees’ saving schemes) was not covered by the Romanian survey, because such payments are not covered by the national legislation.

-        Data for variable D122 (Employers’ imputed social contribution) cover only the variables: D1221 (Guaranteed remuneration in the event of sickness), D1223 (Payments to employees leaving the enterprise) and D1224 (Other imputed social contributions of the employer).

-        So, in this case: D122 = D1221 + D1223 + D1224

-        The optional variable D1222 cannot be broken down separately.

-        The optional variables D11141 (Company products), D11142 (Staff housing), D11143 (Company cars) cannot be broken down separately, so in this case: D1114 ³ D11145

-        The mandatory variable D4 (Taxes paid by the employer) includes only the employers' contributions to the disabilities fund, which was previously included in D1211 and not possible to be broken down separately.

The variables collected and provided by Romania answer to all Commission Regulation requirements for data tabulation according to the classification schemes:

• country level: NUTS1 level – 4 macro-regions;
• economic activities: section level B – S (1-digit), division level 05 – 96 (2-digit) according to NACE Rev.2 and the aggregates B_S, BSO, B_N, B_F, B_E, G_S, GSO, G_N, G_J, K_N, O_S, P_S;
• size class of the enterprises: 1-9, 10-49, 50-249, 250-499, 500-999, 1000 and more employees;
• categories of variables: number of employees (A-variables), hours actually worked (B-variables), hours paid (C-variables), labour cost (D-variables) and information on units (E-variables),
• categories of employees: employees and apprentices.

No breakdown, in terms of economic activities or size classes, is missing from Labour Cost Survey 2020.

Furthermore, data for NACE Rev.2 section O were collected and provided by Romania for all tables A, B and C. Also, data for the corresponding aggregates where section O was requested were provided in all tables.  

Data for size class 1 – 9 employees were available and provided for Table B.

Romania collected 35 mandatory variables (97% from all mandatory variables) and 4 optional variables (44% from all optional variables), meaning almost 87% of all variables requested by the Commission Regulation.

See below

Sampling design

The sampling frame used for the sample selection 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).

The sampling technique applied for the Labour Cost Survey was the stratified sampling and the selection method used was the simple random selection without replacement. The strata were defined by crossing the 42 counties with 20 sections according to NACE Rev. 2 (divisions 01-96) and 3 size classes of enterprises (less than 10 employees, 10-49, 50 or more employees).

All units with 50 employees and over were exhaustively observed irrespective of their economic activity or their location. The public units from the public administration (O), education (P), human health and social work (Q) activities were exhaustively included in the survey, except local public administration units, for which data at level of local communal councils were collected based on representative sample at level of county (about 820 units). The private units from the education (P), human health and social work (Q) activities were sampled.

The selection unit was the enterprise, but the observation unit was the local unit.

The sample size for the reference year 2020 was around 26800 enterprises surveyed.

In order to improve the quality estimates and to increase the overall response rate, estimation methods were applied, by imputing the missing data from the statistical survey with the data reported in administrative sources. In addition, in order to improve the reliability of data at county level (NUTS3) and NACE Rev.2 division (2 digits), the survey sample was extended by about 17200 economic agents belonging to the size class less than 50 employees, for which estimation methods for obtaining the statistical indicators from administrative sources were applied.

The coefficients of variation for the key variables for the total population (size class 1+ employees) are:

• annual labour cost: 0.022847
• hourly labour costs: 0.003106

The coefficients of variation (CV) requested through the Commission Regulation No. 698/2006 are presented in the attached document RO_Coefficients_of_variation.xlsx - by NACE Rev.2, sections and size classes, according to tables sent to Eurostat. The computations of CVs have been produced using the using the variance programme PROC SURVEYMEANS, a SAS macro.

In order to improve the quality estimates and to increase the overall response rate, estimation methods were applied, by imputing the missing data from the statistical survey with the data reported in administrative sources (see item 6.3.4.1.).

Detailed description in the following items.

The under-coverage rate was 0.24%, representing the proportion of new units not included in the sample frame at the time of sample selection in the total number of units from the updated sample frame.

The over coverage units are not counted in response set. To perform the adjustments of the over- and under coverage by weighting procedure a model assumption (about the over- and under coverage) was used, applied for each stratum:

• The over coverage rate among the respondents is the same as among the non-respondents.
• The number of over coverage enterprises in the frame is the same as the number of under coverage enterprises.
• The mean value of any variable of interest is the same in the accessible part of the target population as in the under-coverage part.

In the attached document RO_Misclassification.xlsx are presented the measure of misclassification by size classes and NACE sections.

No over coverage was registered.

For all economic sectors (section A to S, except section T according to NACE rev.2) covered at national level, it encounters the existence of a 0.67% of unidentified enterprises after imputing the missing data from the statistical survey with the data reported in administrative sources. In the adjustment procedure the unidentified enterprises were assimilated to the non-response units.

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

The information below is an estimation of errors and cases corrected at central level. Statistics on the first level of checking (respondent and local level) are not available.

One error might need several variables to be corrected or, if the figures correspond to reality due to unusual phenomena, figures were accepted as such and no correction was made.

Most frequent errors that occurred during the period of data checking at central level and already corrected at local level after re-contacting the respondent units were related to:

-        the comparison between the hourly amounts paid for the hours not worked (excluding temporary work incapacity) and the hourly amounts paid from the salary fund and/or other funds for hours worked (20.6%);

-        the comparison between the hourly amounts paid for temporary work incapacity borne by the employer and the hourly amounts paid from the salary fund and/or other funds for hours worked and not worked (excluding temporary work incapacity) (19.5%);

-        the mismatches between hours not worked related to work interruptions periods (excluding temporary work incapacity), the amounts paid to employees related to these interruptions and the amounts granted in the form of transfers from the state budget to the employer (to stimulate employment and in the context of the situation caused by the COVID-19 pandemic and state of emergency/alert) (11.8%);

-        the data comparability with the Monthly Survey on Earnings (for common variables) (7.3%);

-        the comparison between the hourly amounts paid for temporary work incapacity not borne by the employer and the hourly amounts paid from the salary fund and/or other funds for total time (paid by the employer) (5.0%);

-        the employees’ mandatory social contributions (4.5%).

The number of cases needed to be corrected was not so significant to have an impact on the accuracy of the final results. In the attached document RO_Percentage_of_cases_corrected.xlsx are estimated the percentages in the total cases corrected at central level, by each variable.

For the data transmitted to Eurostat the plausibility checks were applied and different inconsistencies explained. Not all the “plausibility checks” were fulfilled, but the number of these cases is not significant:

-        In more economic sectors, STR_D1 > 100.00% due to the fact that D5 > D2+D3+D4, situation determined by the transfers granted from the state budget to the employer, in order to support the economic and social units in the context of the situation caused by the COVID-19 pandemic and of the state emergency/alert, respectively by the transfers from the state budget to the employer for the stimulation of employment by (re)employing certain categories of people (for example: graduates, unemployed).

-        Variables A1, C1, D1 and their breakdowns also include the employees for the period when the individual employment contract was temporary suspended at the employer initiative (technical unemployment) in the context of the situation caused by the COVID-19 pandemic and of the state emergency/alert, irrespective if the employee’s benefits are borne by the employer or from the state budget, as the payment was made at the initiative of the employer and exclusively by and through their payroll system.

-        Variable D4 in 2016 was included in D1211 due to fact that the variable could not be broken down separately.

-        Variable A1 (Total number of employees) significantly decreased in 2020 compared with 2016 (with 75% in table A) in NACE X05 due to the structural changes over the years in the national economy and of the staff layoffs in this economic activity.

-        Other important decrease was registered in NACE X95 (with 37% in table A) due to structural changes over the years.

-        Variable A1 (Total number of employees) increased in 2020 compared with 2016 in NACE X62 (with about 44% in table A) due to the development of the IT sector and changes in the related economic activities.

-        Other important increases were registered in X88 (+40% in table A) and X77 (+38% in table A) due to structural changes over the years.

-        COST_MTH (Average monthly labour cost) increased in 2020 compared with 2016 in all economic activities, but NACE X05, mainly based on the increasing of the total labour costs and on the application of legal provisions in force regarding the increase the minimum gross salary guaranteed in payment (from 1050 RON in 2016 to 2230 RON in 2020). Furthermore, in the budgetary sector (X84, X85, X86, X87, X88, X90, X91) the increases were also due to certain normative acts, which contained provisions related to the increases of salaries/wages for this particular segment of employees.

-        COST_MTH decreased in 2020 compared with 2016 in NACE X05 due to the sums actually paid in 2016 to dismissed workers.

-        Theslight increase of the COST_MTH in 2020 compared with 2016 in NACE X51 was mainly determined by reducing of the direct costs in 2020, in the context of the situation caused by the COVID-19 pandemic and of the state emergency/alert.

-        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 salary earnings (direct labour cost).

-        Consequently, the data series for the following variables are no longer comparable starting with January 2018 to the data series prior to 2018: D11, D111, D1111, D1114, D11111, D11112, D1113 D112, D12, D121, D1211, D122, D1221, D1223, D1224, D123.

-        In the attached document RO_Comparative table.doc is presenteda comparative situation on social contributions and tax.

-        The average monthly labour cost fluctuated by economic activities and size classes of the enterprise / development regions, as a result of the structural changes in recent years in the national economy.

The treatment of non-response is regarding to the survey status of enterprises and its response. The non-response type used to the collection data phase is: refusal, unidentified units, out of scope units, units with not established contact, ceased units.

The non-response type used to the collection data phase is presented broken down by economic activity (NACE Rev.2. 2 digits) and by size classes in the attached document RO_Non-response rates.xlsx.

To perform the adjustments of out of scope units by weighting procedure a model assumption was used. These assumptions are made for each stratum (to first sampling phase level) and are:

• The out of scope units’ rate among the respondents is the same as among the non-respondents.
• The number of out of scope enterprises in the frame is the same as the number of in scope units but not included in the sampling frame.
• The mean value of any variable of interest is the same in the accessible part of the target population as in the inaccessible part.

In order to reduce the unit non-response, the statisticians from the local statistical offices contact or re-contact the units/respondents who did not sent the data, irrespective of their size classes, but especially the ones with more than 50 employees, who are exhaustively surveyed. In the data collection phase, the on-line system automatically transmitted reminders to all enterprises in the survey sample.

The non-response type used to the collection data phase is presented broken down by economic activity (NACE Rev.2. 2 digits) and by size classes in the attached document RO_Non-response.xlsx.

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 units having the normal score (z score) out of interval [-3, 3] are outlier units. The normal score, which determines the outlier units, is computed taking into account the stratification used in sample design.

Items of partial non-response were sent back to the respondent units for filling in the whole information. No item non-response was accepted.

About 700 logical tests (for the main questionnaire and the annex, by the main variables and gender breakdowns) were designed for data entry and validation, data checking and correlation on the key variables, such as: number of employees, hours worked, hours paid, direct remuneration and other labour costs. Since the same tests were conducted at respondent level, local level as well as at central level, the largest part of the errors found was solved from the beginning (at respondent and local level). The figures were corrected after re-contacting the corresponding enterprises.

The logical tests for the data integrity and correctness 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.

At central level besides the procedures developed for the web portal, there were developed IT programmes for:

• data validation, correctness and correlation,
• adjustment and weighting procedures,
• non-weighted and weighted data tabulation.

The tests applied at central level also checked for the data comparability with the previous survey and other surveys for common indicators:

• data comparability with the previous survey for the main and common variables,
• data comparability with other data sources for the common variables (i.e. Monthly survey on wages and salaries),
• data imputation from administrative sources in case of unit non-responses,
• preparation of counties databases,
• codification of the national variables accordingly to the variables stipulated in the regulation;
• automatic transformation of final results into the standard format for data transmission designed by Eurostat.

The questionnaire design, detailed explanatory notes and the IT solutions developed had as result a complete and of good quality data set.

No item non-response was finally recorded into the data. When discovered at local level, enterprises were re-contacted for filling in all missing variables.

Same tests were conducted at local level (territorial statistical offices) as well as at central level (INS). The largest part of the errors found was solved at local level. The data were corrected after re-contacting the corresponding respondents.

Furthermore, the same global and plausibility checks as described in the “LCS 2020 Implementing arrangements” were applied for the data sent to Eurostat. Where the tests not passed, explanatory notes were provided at data transmission (see point 6.3.2).

Starting with year 2012 data from administrative sources was used for data survey completeness and to improve the response rates (in case of refusal, unidentified units in the survey data collection, dormant units in the survey but with data in administrative sources).

The administrative data sources used are provided by the Ministry of Finance and Ministry of Labour (Unique Fiscal Form and Social Security Register).

The two databases were matched and 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.

For all economic sectors (section A to S, except section T according to NACE rev.2) covered at national level, the initial response rate was 91.81%^[1] and that of refusal 4.28%. In order to improve the quality estimates and to increase the overall response rate, estimation methods were applied, by imputing the missing data from the statistical survey with the data reported in administrative sources, having 2020 as reference year and increasing in this way the overall response rate at 99.59%. The imputation rate^[2] was 7.78%.

In Romania, fiscal year fully corresponds to the calendar year. Thus, no adjustment is necessary.

Romanian Labour Cost Survey 2020 covered all enterprises irrespective of their size, including the small enterprises, with less than 10 employees.

According to Eurostat arrangements for implementing the Council Regulation no.530/1999 and the Commission Regulation no. 1737/2005, Romania provided data for:

1. Table A (national data by economic activities section and division level NACE Rev.2) - data refer to enterprises with 10 or more employees;
2. Table B (national data by economic activities section and division level NACE Rev.2 and by size class of the enterprise) - data refer to all size class enterprises (1-9, 10-49, 50-249, 250-499, 500-999, 1000 + employees);
3. Table C (regional data by economic activities section and division level NACE Rev.2) - data refer to enterprises with 10 or more employees.

Not the case

Not the case

Not the case

Not the case

See below

All the activities carried out by INS during a year are scheduled through the Activity Plan with several months earlier. Annually, INS issues for the users a catalogue of statistical products and services containing the names, periodicity, short descriptions and release dates for all publications.

The length period of preparing and carrying out the Labour Cost Survey 2020 lasted at national level about one year (from mid-October 2020 to the end October 2021) and according to the Regulations in force for the data transmission to Eurostat and quality report, as described in the attached document RO_Timeliness.xlsx.

Transmission of Labour Cost Survey 2020 final results: 10.05.2022

Transmission of Labour Cost Survey 2020 final results: 10.05.2022

The data collection period for Labour Cost Survey was lasted three months:

• about two months for enterprises to fill in the questionnaires on-line (01.02.2021 – 19.03.2021), or on paper and to send them to the territorial statistical offices (up to 15.02.2022);
• about two and a half months for the territorial statistical offices to perform data entry for the questionnaires received on paper, for data checking and first validation (February – mid April 2021). The deadline for completing the data collection was 15^th April 2021.

Since not all enterprises respected the deadline requested, a high proportion of questionnaires reached with delay the territorial statistical offices. Furthermore, due to the recalls necessary for additional information and corrections of the variables filled in by the enterprises, delays occurred in complete the data collection process.

Only the information on the delays encountered in completing the data collection at central statistical level is available. Below are presented information on the proportion of data collection completion:

• before 15^th April: 95.92%;
• 15^th April: 4.08%.

Due to internal difficulties, the release date at national level for the number of employees and earnings was postponed by one week (27.08.2021).

The release date at national level (24.09.2021) for labour costs was the same as the scheduled date, no delay was registered.

Also, the data transmission to Eurostat (Tables A, B, C) was in accordance with the legal requirements, as csv files, via eDAMIS, sent on the 10^th of May 2022 (the deadline stipulated by the Council Regulation no. 530/1999 is up to 30^th June 2022).

Due to internal difficulties, the entire data processing process was slightly delayed.

The release date at national level:

- was postponed by one week (27.08.2021) for the number of employees and earnings;

- was respected for labour costs (24.09.2021).

Also, the data transmission to Eurostat (Tables A, B, C) was in accordance with the legal requirements, as csv files, via eDAMIS, sent on the 10^th of May 2022 (the deadline stipulated by the Council Regulation no. 530/1999 is up to 30^th June 2022).

See below

Comparability between national and European concepts on:

• Definition of statistical units - There is no deviation from European concepts:

The unit of selection was the enterprise defined according to the communitaire 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 sampled enterprises provided data for each local unit, thus the observation unit of the Labour Cost Survey was the local unit, in accordance with the requirements of Council Regulation no. 530/1999 concerning structural statistics on earnings and labour costs.

• Populations - There is no deviation from European concepts:

The Romanian Business Register was designed and implemented based on the administrative files and statistical sources in addition (REGIS, which is the Fiscal Register updated annually, Trade Register, Balance Sheet files, VAT files, feedback from other surveys, used as consultation data sources for improving the quality of the register data).

According to the Council Regulations, REGIS contains the following types of statistical units: legal unit, enterprise, and local unit. All the enterprises having the main activity in the section A to S - NACE Rev.2, whatever their size (number of employees or turnover) are covered.

The Romanian Business Register contains all enterprises, authorities and organisations as well as their local units in Romania that carry out any economic activity irrespective of their size or if they belong to the private or public sector. There are covered the following institutional sectors:

• Non-financial corporate and quasi-corporate enterprises
• Central and local administration
• Social security institutions and private non-profit institutions serving households

In respect to the budgetary institutions and public administration REGIS is the most complete register in Romania, based on Official Journal and the collaboration with a lot of administration institutions.

• Reference times - There is no deviation from European concepts:

The statistics on level and composition of labour cost were produced for the 2020 calendar year, but they have a yearly periodicity for national purposes.

• Classifications - There is no deviation from European concepts:

The national classification of economic activities is covered by CAEN Rev.2 fully harmonized with NACE Rev.2.

The size classes of enterprises correspond to the size classes described in the Council Regulation no. 530/1999 concerning structural statistics on earnings and labour costs.

• Definitions of variables -There is no deviations from European concepts:

The definitions of Labour Cost Survey 2020 variables were developed and adopted in accordance with European standards (Commission Regulation (EC) no 1737/2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission on labour costs), but also taking into account the national features.

Not the case

The Romanian Labour Cost Survey has been carrying out annually since 1994 with 1993 as reference year. No significant changes in definitions, coverage or classifications used over the years. The improvements made from year to year refer only to the changes in variables collected and not to the content of the variables, as are presented below:

• For the period 1994 - 1998 the same type of questionnaire was used. No data on hours worked or paid hours were collected. Variable regarding the number of employees (converted into equivalent full units) was not broken down on full-time and part-time. Variables composing earnings (bonuses and grants for length in service, for shift work, for night shift, work in underground etc.) were detailed, reason for which and taking into account complaints of the enterprises, this part was afterwards simplified.
• In 1999 the chapter related to earnings composition was redesigned and the number of variables collected was reduced. Experimentally, for the first time, variables on paid hours and hours actually worked were collected but only related to all employees (without any distinction by full time and part time or any other category).
• For Labour Cost Survey 2000 the questionnaire was significantly improved. Variables on the number of employees, hours worked and paid hours were broken down by full-time and part-time employees, according to the Council Regulation 530/1999 concerning structural statistics on earnings and on labour costs and Commission Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs. There still were some missing variables. First quality report was carried out according to the Commission Regulation (EC) No 452/2000 as regards quality evaluation on labour cost statistics.
• Labour Cost Surveys for 2001 - 2003 kept same questionnaire as for Labour Cost Survey 2000 and followed same methodology. The only changes operated from one year to another referred to the requirements of the national legislation in force.
• Labour Cost Survey 2004 was designed and carried out according to the Commission Regulation no 1726/1999. The data transmission for 2004 survey was done in accordance with the Commission Regulation (EC) no 1737/2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission on labour costs. The following improvements were made:
  • the breakdowns of average number of employees on full-time, part-time and in full-time equivalents were collected;
  • the breakdowns of the average number of employees, hours worked, hours paid and direct costs by gender were collected even if it was not required by the regulation;
  • the missing variables of section D were introduced in data collection: D1111 Direct remuneration and bonuses, D11111 Direct remuneration, D11112 Bonuses, D1113 Payments for days not worked, D1114 Wages and salaries in kind, D11144 Other, D1223 Payments to employees leaving the enterprise;
  • all variables related to the apprentices were collected, being covered by the legislation now.
• Labour Cost Surveys 2008, 2012, 2016 and 2020 were designed, carried out and data were transmitted according to the Commission Regulation (EC) no 1737/2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission on labour costs.

In 2020, the indicators of hours paid but not worked, respectively gross amounts paid and contributions of the employer, were reorganized so that the questionnaire is better adapted to the current situation, both in terms of legislative changes over time and conjunctural, in the context of the situation caused by the COVID-19 pandemic and the state of emergency/alert.

The national Labour Cost Survey data are available annually starting with 1993 as reference year.

The European Labour Cost Survey data are available every 4 years starting with 2004 as reference year (2004, 2008, 2012, 2016 and 2020).

Coherence with the statistics from Labour Force Survey

The comparison between the number of hours actually worked in 2020, expressed per employee (from Labour Cost Survey) and the average actual hours worked in the main job (excluding the employees that did not worked during the reference week) per year of the Labour Force Survey (LFS), expressed per employee shows differences for all NACE Rev.2 sections.

Apart from the clear difference in terms of indicators definitions, coverage, data collection procedures and survey methodology between LFS and LCS, the main reason for the discrepancies between the figures provided by the two data sources is the proportion of informal sector and black market in Romania that are covered only by LFS. 

The hours worked from LFS are based on the self-declaration of the household members (or proxy answers of other household members) and differ from the hours worked, collected through LCS, based on enterprises evidence.

The LCS do not cover employees from armed forces and assimilated, as well as 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).

Coherence with Structural Business Statistics

Considering the differences of the two surveys coverage, the figures on wages and salaries per employee follows the same trends.

SBS does not cover the section financial intermediation (section K), public administration (section O) and covers only the private sector for education (section P), human health and social work activities (section Q), arts, entertainment and recreation (section R) and section S (excluding division 94).

Furthermore, in SBS grossing up weighs are used for the variable wages and salaries, including calibration based on Business Register (REGIS) information.

Information about the number of employees is based on the Business Register information.  

This procedure it is not possible to be applied to LCS due to the fact that the results are disseminated before REGIS is updated with the information related to the survey reference year.

In the attached document RO_Coherence_cross_domain.xlsx is presented the coherence with LFS and SBS.

Coherence with Labour Cost Index

The comparison between the average annual growth rate of the hourly labour cost (D/B1) and the average annual growth rate of LCI was done by comparing year 2020 against 2016.

The differences between the two data sources are mainly due to the broader content of the total labour cost from LCS (that includes vocational training D2 and other expenditures D3).

LCI is composed based on the results of the monthly survey on wages and salaries. According to the national methodology, on short term statistics, for a “clean” indicator on wages and salaries, the payments belonging to other pay periods, the back-dated pay arrears that do not refer to the current year are excluded. These payments are included in the annual wages and salaries that are reflected in the LCS figures. 

In the attached document RO_Coherence_cross_domain.xlsx is presented the coherence with LCI.

The comparisons between the compensation of employees, expressed per employee, show some differences between Labour Cost Survey and National Account, and are due to the different coverage.

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

• Accounting statements of financial corporations,
• Accounting statements of non-profit institutions serving households,
• Execution of state budget,
• Structural Business Survey,
• Labour Force Survey (for employment data only),
• Declaration on global income of self-employed persons and family associations.

NA estimates also the non-observed economy that is not covered by LCS. Also, NA includes armed forces and similar staff. Thus, variable D1 in NA comprises as payments in kind also the meals, uniforms (militaries) and business travel expenses.

NA includes persons with other contract forms such as: civil conventions (special type of working arrangement – for performing specific services – but the staff involved is not considered as employees according to the national legislation, although the payment is done quite in similar way), author ownership rights and free lancers. 

Starting with year 2004, the data on employment were estimated according to the final results of the Population and Housing Census 2011.

The LCS do not cover employees from armed forces and assimilated, as well as 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).

In the attached document RO_Coherence_cross_domain.xlsx is presented the coherence with NA.

Not requested by the CR No 698/2006 implementing Council Regulation (EC) No 530/1999 as regards quality evaluation of structural statistics on labour costs and earnings.

See below

The main results are disseminated through a press release posted on INS web-site, both in Romanian and English language https://insse.ro/cms/en/content/labour-costs-year-2020.

The main publication of Labour Cost Survey results is the “Annual earnings and labour costs”, available only in Romanian language and contains the following chapters:

• Survey methodology and organization;
• Data analysis,
• Results tables.

The publication is available on-line:

https://insse.ro/cms/en/content/earnings-and-labour-cost-2020

and at the INS library. 

The main results of the Labour Cost Survey are published in the Statistical Yearbook, which is available in printed form, on CD-ROM and on-line (https://insse.ro/cms/en/content/romanian-statistical-yearbook-book-format-and-cd-rom), both in Romanian and English language.

Also, the results are disseminated throughout:

• synthesis publications such as: Social Trends, Regional economic and social benchmarks, Women and men working and living partnership and Romania in Figures

(http://www.insse.ro/cms/en/publicatii-statistice-in-format-electronic)

• other on-line data base (i.e. Sustainable Development Indicators – broken down at territorial level (NUTS1, NUTS2 and NUTS3).

(http://www.insse.ro/cms/en/content/sustainable-development-indicators)

Also, the national database (TEMPO), available on INS website (http://statistici.insse.ro:8077/tempo-online/#/pages/tables/insse-table), both in Romanian and English language, contains data on annual earnings and labour costs. On request, data are provided to a variety number of other users (internal and international).

Not available

Not the case

Based on the Labour Cost Survey results three detailed copybooks (on the number of employees, on earnings and on labour costs) are prepared and disseminated to the main users (about 25), in electronic format:

• Romanian Presidential Administration;
• Romanian Parliament (including several Commissions oriented on labour, social protection policies);
• governmental bodies: Ministry of Labour and Social Protection, Ministry of Public Finances, National Commission for Strategy and Prognosis, National Agency for Employment, Ministry of Economy, Ministry of Internal Affairs, Ministry of Education, Ministry of Health, Ministry of Foreign Affairs, Ministry of Agriculture etc.;
• employers and employers’ associations;
• trade unions;
• professional associations;
• research institutes and universities: National Institute for Scientific Research in the Field of Labour and Social Protection, Institute of National Economy, National Institute for Economic Research, Institute of Educational Sciences, Romanian Academy, Academy of Economic Studies etc.

The three copybooks are available only in Romanian language, in printed and electronic format.

The Labour Cost Survey data are disseminated together with comprehensive and clear metadata, irrespective of the release form or user category.

The copybooks contain:

• a brief description of the survey (scope, coverage, periodicity, sample size, non-response rate),
• definitions of the main indicators,
• detailed results tables on the main indicators:
  • number of employees,
  • earnings,
  • labour costs,

by economic activities (section and division level), ownership forms, legal status of the enterprises, size classes of the enterprises, regions of economic development.

The publication “Annual earnings and labour costs” is structured in three chapters:

1. Survey methodology and organization: provides information on the survey objectives, coverage, unit of selection/observation, periodicity and reference period, sampling design, concepts and definitions of the collected and derived indicators, classifications used,
2. Data analysis: contains tables, graphs and analysis of the main indicators obtained – number of employees, hourly and monthly average earnings, working time, hourly and monthly average labour cost, labour cost structure – by economic activities, ownership forms, legal status of the enterprises, size classes of the enterprises, regions of economic development.
3. Results tables: contains detailed tables of the main indicators by economic activities (section level), ownership forms, legal status of the enterprises, size classes of the enterprises, and regions of economic development.

The press release contains the main results of the survey and comparative analysis by economic activities, gender, territorial distribution and over time. Also, methodological explanations are available and tables with detailed results.

The tables with data in the Statistical Yearbook are accompanied by methodological notes describing the data sources, the concepts and definitions of the indicators presented.

The databases are also accompanied by metadata on the released indicators, data sources, survey coverage, periodicity, sample size.

The users are informed by the INS on the publications that are to be issued over the year, through the “Catalogue of statistical products and services”, which is available on printed form, but also on-line (www.insse.ro). The catalogue contains the INS yearly publications, periodicals, quick information, electronic publications, publication in stock and statistical services.

The quality reports on Labour Cost Survey are available on INS web-site (both in Romanian and English) and contain the same information as in the ESS MH (http://www.insse.ro/cms/en/content/quality-reports).

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No information is available

No information is available

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 on the Romanian territory, hold any kind of capital or carry out any type of activity.

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 officially recognised by the government as fully independent organisation: 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, Libertății Avenue, Bucharest, District 5.

According to the Eurostat confidentiality criteria as described in the “LCS 2020 Implementing arrangements”.

No further comments.