- Methods and Projects
- Standards and Classifications
Standardised Methodological Report
Harmonised Labour Cost Index
- 1Contact
- 1.1Contact organisation
National Statistics Institute of Spain
- 1.5Contact mail address
Avenida de Manoteras 50-52 - 28050 Madrid
- 1.1Contact organisation
- 2Metadata update
- 2.1Metadata last certified
09/09/2024
- 2.2Metadata last posted
09/06/2023
- 2.3Metadata last update
09/09/2024
- 2.1Metadata last certified
- 3Statistical presentation
- 3.1Data description
The Harmonised Labour Cost Index is a continuous quarterly statistical operation whose main objective is to provide a common, comparable and appropriate measure of labour costs for the whole of the European Union, which allows for monitoring the evolution of these labour costs.
To obtain the harmonised labour cost index, Laspeyres index is used, chain-linked annually and based on a fixed structure of economic activity, broken down by sections of the National Classification of Economic Activity (CNAE-09). Indices are calculated for the following variables per hour worked: total labour cost, total wage cost, other costs and labour cost excluding extraordinary and arrears.
- 3.2Classification system
- CNAE-2009, secciones de B a S
B Industrias extractivas
C Industria manufacturera
D Suministro de energía eléctrica, gas, vapor y aire acondicionado
E Suministro de agua, actividades de saneamiento, gestión de residuos y descontaminación
F Construcción
G Comercio al por mayor y al por menor; reparación de vehículos de motor y motocicletas
H Transporte y almacenamiento
I Hostelería
J Información y comunicaciones
K Actividades financieras y de seguros
L Actividades inmobiliarias
M Actividades profesionales, científicas y técnicas
N Actividades administrativas y servicios auxiliares
O Administración Pública y Defensa; Seguridad Social obligatoria
P Educación
Q Actividades sanitarias y de servicios sociales
R Actividades artísticas, recreativas y de entretenimiento
S Otros servicios - Costes laborales por hora efectiva de trabajo
Coste laboral
Coste salarial
Otros costes
Coste total por hora excluidas pagas extras y atrasos
- CNAE-2009, secciones de B a S
- 3.3Sector coverage
The population scope is made up of all the local units, regardless their size, whose economic activity is included in Sections B to S of the CNAE-09. Agricultural, livestock and fishing activities, domestic workers and extraterritorial organisations are excluded.
- 3.4Statistical concepts and definitions
- Labour cost index (LCI)
The labour cost index (LCI) is defined as the Laspeyres index of labour costs per hour worked, chain linked annually and based upon a fixed structure of economic activity at NACE Rev.1 section level.
- Labour costs
Labour costs mean the total expenditure borne by employers in order to employ staff, a concept which has been adopted in the Community framework and complies broadly with the international definition of the International Conference of Labour Statisticians (Geneva, 1966). Labour costs include compensation of employees (D.1) with wages and salaries in cash or in kind and employers' social contributions, vocational-training costs (D.2), other expenditures (D.3), taxes relating to employment regarded as labour costs (D.4), less any subsidies received (D.5). The costs for persons employed by temporary employment agencies are to be included in the industry of the agency which employs them (NACE Rev. 2, 78,20) and not in the industry of the enterprise for which they actually work.
- Social Security contribution account
This is composed of a group of workers employed by others, who carry out their employment activity in one or more workplaces at a single company, within a single province and generally under a single main activity, although not necessarily so, and with standard features as regards Social Security contribution.
- Labour cost index (LCI)
- 3.5Statistical unit
The basic unit is the local unit or establishment
- 3.6Statistical population
The population scope is made up of all the local units, regardless their size, whose economic activity is included in Sections B to S of the CNAE-09. Agricultural, livestock and fishing activities, domestic workers and extraterritorial organisations are excluded.
- 3.7Reference area
From a geographical point of view, the statistic covers the entire national territory.
- 3.8Time coverage
The statistic is carried out quarterly. Results of the statistics are available from the first quarter of 2000.
- 3.9Base period
The base year is 2020.
- 3.1Data description
- 4Unit of measure
- 4.1Unit of measure
Index number
- 4.1Unit of measure
- 5Reference period
- 5.1Reference period
The reference period is the natural or calendar quarter.
Data referred to the period: Trimestral A: 2024 TRI: II
- 5.1Reference period
- 6Institutional mandate
- 6.1Legal acts and other agreements
The compilation and dissemination of the data are governed by the Statistical Law No. 12/1989 "Public Statistical Function" of May 9, 1989, and Law No. 4/1990 of June 29 on “National Budget of State for the year 1990" amended by Law No. 13/1996 "Fiscal, administrative and social measures" of December 30, 1996, makes compulsory all statistics included in the National Statistics Plan. The National Statistical Plan 2009-2012 was approved by the Royal Decree 1663/2008. It contains the statistics that must be developed in the four year period by the State General Administration's services or any other entity dependent on it. All statistics included in the National Statistics Plan are statistics for state purposes and are obligatory. The National Statistics Plan 2021-2024, approved by Royal Decree 1110/2020, of 15 December, is the Plan currently implemented. This statistical operation has governmental purposes, and it is included in the National Statistics Plan 2021-2024. (Statistics of the State Administration).
The legal basis of the harmonisation process of the Labour Cost Index (HLCI) is Regulation No 450/2003 of the European Parliament and of the Council of 27 February 2003, which establishes a common framework for the production, transmission and evaluation of comparable labour cost indices.
Commission Regulation No 1216/2003 of 7 July 2003 implementing Regulation (EC) No 450/2003 of the European Parliament and of the Council concerning the labour cost index, establishes the procedures for adjustment and transmission of indices, the annual chaining method of these as well as the content of the annual quality reports.
Commission Regulation No 224/2007 adopted on 1 March 2007 establishes the mandatory inclusion in the index of the economic activities of Public Administrations, Education, Health and Personal Services from the data referring the first quarter of 2009 and from, at least, the first quarter of 2007.
The Spanish version of the European Union regulations that affect this statistical operation can be accessed at:
https://www.ine.es/normativa/leyes/UE/minine.htm#30211
- 6.2Data sharing
The exchanges of information needed to elaborate statistics between the INE and the rest of the State statistical offices (Ministerial Departments, independent bodies and administrative bodies depending on the State General Administration), or between these offices and the Autonomic statistical offices, are regulated in the LFEP (Law of the Public Statistic Function). This law also regulates the mechanisms of statistical coordination, and concludes cooperation agreements between the different offices when necessary.
.
- 6.1Legal acts and other agreements
- 7Confidentiality
- 7.1Confidentiality - policy
The Statistical Law No. 12/1989 specifies that the INE cannot publish, or make otherwise available, individual data or statistics that would enable the identification of data for any individual person or entity. Regulation (EC) No 223/2009 on European statistics stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society
- 7.2Confidentiality - data treatment
INE provides information on the protection of confidentiality at all stages of the statistical process: INE questionnaires for the operations in the national statistical plan include a legal clause protecting data under statistical confidentiality. Notices prior to data collection announcing a statistical operation notify respondents that data are subject to statistical confidentiality at all stages. For data processing, INE employees have available the INE data protection handbook, which specifies the steps that should be taken at each stage of processing to ensure reporting units' individual data are protected. The microdata files provided to users are anonymised.
The Harmonised Labour Cost Index is a statistical operation included in the National Statistics Plan and therefore subject to the Law on the Public Statistics Function of 9 May 1989 and, consequently, its data are protected by Statistical Secrecy at all stages of its preparation.
- 7.1Confidentiality - policy
- 8Release policy
- 8.1Release calendar
The advance release calendar that shows the precise release dates for the coming year is disseminated in the last quarter of each year.
- 8.2Release calendar access
The calendar is disseminated on the INEs Internet website (Publications Calendar)
- 8.3User access
The data are released simultaneously according to the advance release calendar to all interested parties by issuing the press release. At the same time, the data are posted on the INE's Internet website (www.ine.es/en) almost immediately after the press release is issued. Also some predefined tailor-made requests are sent to registered users. Some users could receive partial information under embargo as it is publicly described in the European Statistics Code of Practice
- 8.1Release calendar
- 9Frequency of dissemination
- 9.1Frequency of dissemination
The data is disseminated on a quarterly basis.
- 9.1Frequency of dissemination
- 10Accessibility and clarity
- 10.1News release
The results of the statistical operations are normally disseminated by using press releases that can be accessed via both the corresponding menu and the Press Releases Section in the web
- 10.2Publications
Users can access the data through the INE web page. Specifically, the following links appear:
- Press release: contains a summary of the results obtained in the reference quarter.
- Detailed results: where the different series produced are presented.
On the INE web page, information can also be accessed on the base 2000.
It is possible to access published series through the Eurostat database.
- 10.3On-line database
INEbase is the system the INE uses to store statistical information on the Internet. It contains all the information the INE produces in electronic formats. The primary organisation of the information follows the theme-based classification of the Inventory of Statistical Operations of the State General Administration . The basic unit of INEbase is the statistical operation, defined as the set of activities that lead to obtaining statistical results on a determined sector or subject based on the individually collected data. Also included in the scope of this definition are synthesis preparation.
Information can be found at:
- 10.4Micro-data access
A lot of statistical operations disseminate public domain anonymized files, available free of charge for downloading in the INE website Microdata Section
Not applicable.
- 10.5Other
Not applicable.
- 10.6Documentation on methodology
A detailed description can be found at:
INEbase / Labour market /Wages and labour costs /Harmonised Labour Cost Index / Methodology
- 10.7Quality documentation
Quality reports have been prepared annually since 2004 in accordance with Eurostat Regulation 1216/2003. The latest available report corresponds to 2022.
It can be found at http://ec.europa.eu/eurostat/cache/metadata/EN/lci_esqrs_es.htmFields 10.6 a 17 of this document are the quality report oriented to the users of this operation.
- 10.1News release
- 11Quality management
- 11.1Quality assurance
Quality assurance framework for the INE statistics is based on the ESSCoP, the European Statistics Code of Practice made by EUROSTAT. The ESSCoP is made up of 16 principles, gathered in three areas: Institutional Environment, Processes and Products. Each principle is associated with some indicators which make possible to measure it. In order to evaluate quality, EUROSTAT provides different tools: the indicators mentioned above, Self-assessment based on the DESAP model, peer review, user satisfaction surveys and other proceedings for evaluation.
The process for the preparation of the statistic has established controls for the detection and correction of errors with the aim of guaranteeing its quality.
The index is calculated once information sources used to prepare it have been collected, validated and imputed. Once it is prepared, the internal coherence and the coherence of the temporal evolution of the results are checked.
- 11.2Quality assessment
The quality criteria used for the evaluation of this statistic are covered in Section 1 of article 8 of Regulation (EC) No 450/2003 and they are as follows:
a) relevance;
b) accuracy;
c) timeliness and punctuality;
d) accessibility and clarity;
e) comparability;
f) coherence, and
g) completeness.The main source for the preparation of this statistic is the Quarterly Labour Cost Survey (QLCS).
The QLCS is a high-quality product. Its sample size enables indicators to be provided up to the regional level within reasonable sampling errors, the harmonised methodology used enables comparisons to be provided on the international scale with an increased level of solvency and it provides a valuable measure on the evolution of labour costs.
With regard to the survey limitations, limitations inherent to statistical operations due to the use of samples, such as non-response and the aforementioned sampling errors or the coefficients of variation of estimates, must be highlighted. In both cases, they remain within reasonable limits.
- 11.1Quality assurance
- 12Relevance
- 12.1User needs
The users of this survey include:
- Eurostat and the European Commission.
- European Central Bank
- Ministries and other public agencies.
- Territorial administrations (Autonomous Communities, city councils...).
- Businesses and non-profit institutions.
- Researchers and universities.
- Individuals.
Each of these users have different needs according to the purpose and utility of the information they require. In particular, changes in labour costs per hour worked are an important indicator for the analysis of short- and
medium-term economic evolution. The Commission and the European Central Bank use the labour cost index by hour worked, which shows the short-term evolution of labour costs, to evaluate the possible inflationary pressures due to the evolution of the labour force in the labour market. - 12.2User satisfaction
The INE has carried out general user satisfaction surveys in 2007, 2010, 2013, 2016 and 2019 and it plans to continue doing so every three years. The purpose of these surveys is to find out what users think about the quality of the information of the INE statistics and the extent to which their needs of information are covered. In addition, additional surveys are carried out in order to acknowledge better other fields such as dissemination of the information, quality of some publications...
On the INE website, in its section Methods and Projects / Quality and Code of Practice / INE quality management / User surveys are available surveys conducted to date.(Click next link)
On the INE website, in the section Methods and Projects--> Quality and Code of Good Practice-->Quality Management at INE-->User Surveys, you can consult the surveys carried out to date.
In the Satisfaction surveys carried out on users, the "Labour Market" group can provide us with indications on the opinion of the users of this statistical operation. The most important users, the Commission and the European Central Bank, generally indicate satisfaction, but they want shorter timeframes in the publication of information.
- 12.3Completeness
The statistic complies with all the requirements established by the Community regulation. The aforementioned regulation is included in Regulation No 450/2003 of the European Parliament and of the Council of 27 February 2003, which establishes a common framework for the production, transmission and evaluation of comparable labour cost indices.
Commission Regulation No 1216/2003 of 7 July 2003 implementing Regulation (EC) No 450/2003 of the European Parliament and of the Council concerning the labour cost index, establishes the procedures for the adjustment and transmission of indices, the annual chaining method of these as well as the content of the annual quality reports and in Commission Regulation No 224/2007 adopted on 1 March 2007, the mandatory inclusion in the index of the economic activities of Public Administrations, Education, Health and Personal Services is established from the data referring to the first quarter of 2009 and from, at least, the first quarter of 2007.
Thus, the statistic provides R1=100% of the information required.
- 12.1User needs
- 13Accuracy and reliability
- 13.1Overall accuracy
The accuracy of the statistic is determined by the accuracy of the sources of information used in its preparation: the Quarterly Labour Cost Survey (QLCS) and the DARETRI file (state public sector compensation system).
For the first source, the sample design aims to minimise sampling errors and different survey processes aim to eliminate or reduce its errors as much as possible, both in the collection stage (rate of response and filtration control) and in the later stages of editing and imputation.
The DARETRI file is a system that automatically captures the salary data referred to in articles 11 to 15 of chapter I of the Expenditure Budget of the General State Budgets through «ad hoc» files generated in the monthly preparation of payrolls that refer to personnel at the service
of the state public sector. - 13.2Sampling error
Not applicable, as it is prepared from the results of the Quarterly Labour Cost Survey. The Survey's sampling errors are available (https://www.ine.es/dynt3/inebase/en/index.htm?padre=922&capsel=940)
The variation coefficients of the main published variables at the time of writing this reportt are: "Total labour cost" A1=0.4%; "Wage cost" A1=0.5%; "Other costs" A1=0.3%.
- 13.3Non-sampling error
Not applicable, as it is prepared from the results of the Quarterly Labour Cost Survey. Reference is made to the information on this point of this survey.
- 13.1Overall accuracy
- 14Timeliness and punctuality
- 14.1Timeliness
The first estimate referring to a quarter is provisional and is published TP1=70 days after the reference period. This estimate is reviewed and published as a definitive figure with the provisional estimates referring to the following quarter (TP2=3months and 70 days).
- 14.2Punctuality
The results of the statistic are published according to INE's short-term statistics release calendar (https://www.ine.es/en/daco/daco41/calen_en.htm)
Every publication has been released on the date announced in the publications calendar.
- 14.1Timeliness
- 15Coherence and Comparability
- 15.1Comparability - geographical
The strict application of the definitions and concepts set forth in the Regulations allow the comparison of the results with those of the other EU member states. These regulations are:
- Regulation No 450/2003 of the European Parliament and of the Council of 27 February 2003, which establishes a common framework for the production, transmission and evaluation of comparable labour cost indices.
- Commission Regulation No 1216/2003 of 7 July 2003 implementing Regulation (EC) No 450/2003 of the European Parliament and of the Council concerning the labour cost index, establishing the procedures for the adjustment and transmission of indices, the annual chaining method of these as well as the content of the annual quality reports.
- Commission Regulation No 224/2007 adopted on 1 March 2007, which establishes the obligatory inclusion in the index of the economic activities of Public Administrations, Education, Health and Personal Services from the data with reference to the first quarter of 2009 and from, at least, the first quarter of 2007.
- 15.2Comparability - over time
The results broken down by CNAE-09 sections are comparable over time from the year 2000. For all economic activities, it must be noted that, since 2006, information has been collected on section O of the CNAE-09.
Thus, the number of elements of the comparable time series in the reference quarter is CC2=98. - 15.3Coherence - cross domain
The use of a single national classification of economic activities allows information to be compared with other economic statistics on common variables, for example the Quarterly Spanish National Accounts.
- 15.4Coherence - internal
Internal coherence is guaranteed as the sources of information used in its preparation are also internally coherent, which allows for the direct application of the index formula.
- 15.1Comparability - geographical
- 16Cost and burden
- 16.1Cost and burden
The estimated budgetary appropriation needed to finance this statistic, as provided for in the 2023 Annual Programme, is 74.40 thousand Euros.
The burden on respondents is null, as this statistic is prepared with existing information.
- 16.1Cost and burden
- 17Data revision
- 17.1Data revision - policy
The INE of Spain has a policy which regulates the basic aspects of statistical data revision, seeking to ensure process transparency and product quality. This policy is laid out in the document approved by the INE board of directors on 13 March of 2015, which is available on the INE website, in the section "Methods and projects/Quality and Code of Practice/INE’s Quality management/INE’s Revision policy" (link).
This general policy sets the criteria that the different type of revisions should follow: routine revision- it is the case of statistics whose production process includes regular revisions-; more extensive revision- when methodological or basic reference source changes take place-; and exceptional revision- for instance, when an error appears in a published statistic-.
Data for a given quarter are revised only once in the publication of the following quarter.
It has been necessary to introduce a review of the published data as the first calculation of the index is based on the provisional data of the Quarterly Labour Cost Survey (QLCS). The verification, validation and filtering processes have not finished and questionnaires with "suspicious" answers waiting for confirmation from businesses are imputed.
- 17.2Data revision - practice
It has been necessary to introduce a review of the published data as the first calculation of the index is based on the provisional data of the Quarterly Labour Cost Survey (QLCS). The verification, validation and filtering processes have not finished and questionnaires with "suspicious" answers waiting for confirmation from businesses are imputed.
Data from the QLCS are published 80 days after the reference period and they are definitive, then the index is recalculated with the final data, which leads to the revision. This revision is published with the provisional data of the following quarter. In this way, there is only one revision for each quarter.
As can be seen from the different publications, the revision does not always result in new data and the majority of the revisions are approximately only one or two percentage points. The mean size of the revision, with the revision being the difference between the definitive and provisional estimate, was A6-MAR= 0.1 for 2023 and the variable Total labour cost .
- 17.1Data revision - policy
- 18Statistical processing
- 18.1Source data
The source of information for the preparation of the HLCI for all the CNAE-09 sections except O (Public Administration, Defence and Social Security), are the provisional results of the Quarterly Labour Cost Survey (QLCS). From this survey, the cost per hour worked in the different sections is obtained, as well as the annual weights needed to calculate the Laspeyres index.
To obtain the information from section O “Public Administrations” and from the first quarter of 2009 and from the first quarter of 2006, the following sources of information have been used:
- the QLCS has included employees of Public Administrations that belong to the General Social Security System in its scope since the first quarter of 2006.
- The DARETRI System: its creation is approved by Order PRE/390/2002 of 22 February. Its aim is to obtain data on compensation of staff at the service of the public state sector. This system's objective is to automatically capture the salary data covered in articles 11 to 15 of chapter I of the Expenditure Budget of the General State Budgets. From this source, the amount and wage cost of the State's staff belonging to the Special Civil Servant Regime are obtained.
- The regulations in force each quarter and the staff obtained from DARETRI for the estimation of this group's contributions.
- The statistics on Budgetary Execution from the State General Intervention Board for obtaining contributions from the State to the Civil Servants Regime for the estimation of the social contributions imputed.
- The Labour Force Survey for obtaining the hours worked by the employee in the Public Administrations.
- 18.2Frequency of data collection
Data is collected on a quarterly basis.
- 18.3Data collection
Information from the QLCS to be used in the preparation of the HLCI is obtained once every quarter, after the questionnaire's collection, validation and imputation processes are finished.
The administrative information from the DARETRI System is sent telematically by those responsible for the system.
- 18.4Data validation
The user is referred to the section on the validation of the QLCS for information from this.
With regards to the DARETRI System, the completeness and consistency of the data received are evaluated, comparing these with the previous quarters.
- 18.5Data compilation
To see the formulas used to obtain the Laspeyres index, see the methodology document:
- 18.6Adjustment
In order to be able to fully interpret the results, the series of indices are obtained in the following ways:
a) Gross series: this is the original series, without adjustment.
b) Series corrected for calendar effects: this is the series adjusted to business days (including the effect of the Holy Week)
c) Seasonally adjusted series and corrected for calendar effects: this series is both corrected for calendar effects as well as for periodic or seasonal effects (overtime, holiday pay...).The seasonal adjustment of these indicators has been done in accordance with the INE Standard for the correction of seasonal and calendar effects in short-term series that is available in the Methods and Standards section on the INE website and that follows the recommendations of the European Union covered in the ESS Guidelines on Seasonal Adjustment.
The series adjusted for calendar effects and the series adjusted for seasonal and calendar effects are obtained using the software JDemetra+ (version 2.2.2), from the publication of data referring to 2018. JDemetra+ is officially recommended by Eurostat, for performing seasonal and calendar adjustments in official European Union statistics. It is a new seasonal adjustment tool, developed by the National Bank of Belgium, in cooperation with the Deutsche Bundesbank and Eurostat.
JDemetra+ includes the two main methods for seasonal adjustment, TRAMO/SEATS and X-12-ARIMA/X-13 ARIMA-SEATS. The tool is built based on the concepts and algorithms used in these two reference methods.
The change in software from TRAMO/SEATS to JDemetra+ does not effect the seasonal adjustment methodology of the INE series, as the method based on ARIMA models (TRAMO/SEATS method) is still used, as seen in the INE Standard for the Adjustment of Seasonal Effects and Calendar Effects in Short-term Series..
This change coincides with the annual re-identification of models. The revisions in the series, caused by the change in software, will be minimal when the model that is reviewed annually is maintained.
The attached file contains the metadata of the seasonal adjustment of the series that are adjusted by the direct method. The aggregate series, total cost and the economic activity aggregates, are adjusted by the indirect method.
- 18.1Source data
- 19Comment
- 19.1Comment
- 19.1Comment