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Labour input, gross wages and salaries

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Statistics Finland

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Wage and salary indices describe the monthly development of the gross wages and salaries sum in different industries. Sums of wages and salaries refer to the gross totals of wages and salaries enterprises have paid.

Wage and salary indices exclude incentive stock options but include bonuses and other one-off reward items. The calculation is based on estimation of change. Calculation of the annual changes also takes into consideration enterprise openings and closures, as well as restructuring and change of activity.

The wage and salary indices are based on the Tax Administration's periodic tax return data and the Sales Inquiry of Statistics Finland .

Starting from 1 January 2019, the wage and salary indices are based on the Incomes Register data and the Sales Inquiry of Statistics Finland.

At the start of the year 2024 the Incomes Register based wages and salaries sum will be allocated according to the earnings period instead of the previous payment-based month. Thus, the wages and salaries sum is better allocated relative to the used labour input. The change will in future cause more index revisions than usual for the most recent month published.

Further information: Wage and salary indices: documentation of statistics

12 June 2025

Wage and salary indices describe the monthly development of the gross wages and salaries sum in different industries. Sums of wages and salaries refer to the gross totals of wages and salaries enterprises have paid.

Wage and salary indices exclude incentive stock options but include bonuses and other one-off reward items. The calculation is based on estimation of change. Calculation of the annual changes also takes into consideration enterprise openings and closures, as well as restructuring and change of activity.

The wage and salary indices are based on the Tax Administration's periodic tax return data and the Sales Inquiry of Statistics Finland .

Starting from 1 January 2019, the wage and salary indices are based on the Incomes Register data and the Sales Inquiry of Statistics Finland. Starting from January 2020, data obtained directly from the Incomes Register are used as source data. Previously, the Tax Administration supplied the data to Statistics Finland.

At the start of the year 2024 the Incomes Register based wages and salaries sum will be allocated according to the earnings period instead of the previous payment-based month. Thus, the wages and salaries sum is better allocated relative to the used labour input. The change will in future cause more index revisions than usual for the most recent month published.

Further information: Wage and salary indices: documentation of statistics

Administrative source: enterprise. Statistical survey: kind-of-activity unit for the (few) major multi-industrial enterprises.

The population of wage and salary indices is all employers that pay wages and salaries. Of enterprises practising business, those classified in Statistics Finland's Business Register under the industries to be examined are included in the calculation. The wages and salaries sum of enterprises serving a group is compiled into the group's industry. The most significant multi-industry enterprises have been divided into so-called kind-of-activity units to improve purity by industry. Business register is used for NACE information. Incomes Register contains comprehensive information on individuals' wages.

The frame is updated monthly and demographic changes, such as start-ups and the most important mergers and split offs, are included instantly. Closures are included as soon as they are noticed, at the latest in four months delay.

Geographical area covered: the whole country. The Autonomous Region of Åland belongs in the statistical phenomenon described. Activities outside the geographical area are not included.

The reference period of wage and salary indices is month.

Accuracy is good due to total data in use. Due to supplementations the data updates for over twelve months. However the most notable changes affect the five most recent moths.

The data are provided as indices.

Type of index
The index is calculated using a panel of enterprise level data on of wages and salaries. The wages and salaries during the reference month is compared with the wages and salaries during the same month previous year and the year-on-year percentage change is calculated. The change is then used to calculate the index number of the latest reference month. This index number is corrected by the index of recently established enterprises and by the index of enterprises that have closed.
For the base year the index is calculated directly from the sum of wages and salaries. (Possible because by time of the base year change, the data is already fully accumulated for the year in question.)

 

Data editing
The combined micro level data, which includes both Incomes Register and survey observations, is studied in detail for the most influential yearly changes in wages and salaries. The erroneous figures are corrected. At this point, many of the mergers and split offs are detected. Most of the information of the mergers, split offs etc. come from administrative sources and are treated automatically. If detected in microlevel checking treatment is semiautomatic and the information have to be entered in the database manually Also the most important closures and start-ups are ensured. A lot of time and effort is spent on this stage.


Estimates for non-response
Imputations are made by five simple methods for the latest and the second latest month. Only the most reliable values are taken into account.

 

Weighting
Since indices are based on total data, the compilation process does not include weighting. Whereas, in the panel technique, an enterprise gets the weight of its share of the sum of wages and salaries in the panel for a given month. This is a fixed base year index.

Administrative source (Incomes Register, which is basically a census) complemented by a statistical survey of the few of the largest multi-industrial enterprises in each industry (cut-off sample).

Imputation is used for part of the missing data. The unit non response is corrected with one of the five simple rules, and imputed values are included into calculations only when the imputation can be considered as reliable.

The results from the Finnish wage and salary indices are published monthly.

The first publication is 35 days after the end of the reference month.
Reporting units should report payments to the Incomes Register within five days of the payment date. Statistics Finland receives the data approximately one month after the end of the reference month.

European definitions are used and therefore the results are internationally comparable. The whole national territory is equally covered.

Comparable data is available from 1995. Some of the series published only nationally are produced only from 2010 onwards.