COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 27.06.1995 
C()M(95)287 final 
95/0171(CNS) 
Draft 
COUNCIL REGULATION (EC) 
on statistics on the structure and distribution of earnings 
(proposed by the Commission ) 

EXPLANATORY MEMORANDUM 
1. In order to carry out its tasks in the field of economic and social affairs, 
particularly with regard to employment and working conditions, the Commission 
needs to have at its disposal comparable data on the distribution and structure of 
earnings in the European Union. This is why, pursuant to Council Regulations, 
four Community surveys directly relating to this matter were carried out between 
1966 and 1978 in the areas of industry, commerce, banking and insurance. The 
results of these surveys, which were published by Eurostat, were very much 
appreciated by the departments within the Commission, the national governments, 
the economic and social sectors and researchers, and served as a basis for labour-
market analyses. 
2. Despite the fact that various factors - the main one being the considerable burden 
on the national statistical offices - meant that these surveys were discontinued at 
Community level, some Member States nevertheless continued to carry out 
surveys of this kind. There is still a current need for such data. Various 
departments in the Commission have pointed out to Eurostat the need to have 
information available on the structure and distribution of earnings at European 
level. In response to the proposal made by Eurostat, all Member States gave their 
backing to a survey on the structure of earnings based on accounting data for 
1995. 
3. In line with the decisions taken at the Essen summit, the Member States of the 
European Union have taken measures to put in place various action programmes 
concerning in particular, labour-market flexibility, job-creation and fighting 
unemployment. In order to set out more clearly the context in which these policies 
are being implemented and to provide the means for a follow-up to the national 
employment programmes, the departments of the Commission will in the coming 
years need to have statistical information available on the various aspects of 
earnings. 
4. In keeping with the principle of subsidiarity, responsibility for the overall planning 
of a survey on the structure of earnings at EU level is shared between the 
Commission and the Member States. The aim is to achieve harmonization of 
concepts and classifications in the data collected, and to identify the information 
required by the principal users, i.e. Community institutions, national governments, 
regional and local authorities, international organizations, employers' associations, 
trade unions and research bodies. The actual collection of data and the methods 
used to do this are the responsibility of the Member States. 
5. It is not intended that all businesses be covered as part of an exhaustive survey, 
but rather that a representative sample be taken. Accordingly iri countries with 
sufficient sources of statistical data, especially data gathered by public authorities, 
it will acceptable for such data to be used (or possibly set out in a simplified form 
on questionnaires), provided that this approach is compatible with the definitions 
and methodology being used and meets all requirements concerning variables. 
6. The legal basis for the survey ensures that a common set of variables will be 
available which have been collected and processed using harmonized classification 
systems and methodology. Legislation in this field has proved necessary because 
the proposed survey extends beyond the scope of existing national surveys. 
Legislation at EU level is thus necessary both for carrying out the survey and for 
the required adjustments to be made to national laws. 
7. The basic aim of statistics on the structure of earnings is to bring out the 
relationship, in statistical terms, between earnings and certain characteristics of 
wage-earners (sex, level of education, professional qualifications, age, type of 
employment contract, length of service, etc.) and of the business or kind-of-
activity unit employing them (economic activity, size, region, etc.). In addition, 
these statistics provide information on the distribution of individual earnings and 
on differences in earnings between the various categories of wage-earner; they also 
help to establish the extent to which differences in earnings levels between 
different economic activities and different countries are attributable to differences 
in the structure of the workforce. Finally, these statistics play a key role in 
Eurostat's system of statistics in that they provide a means of assessing the degree 
of comparability of harmonized earnings data and serve as a basis for the possible 
use of weightings in other surveys. 
8. The main aim of compiling statistics on the structure of earnings is to provide 
comparable good-quality information on all EU Member States. There is currently 
a lack of such data, even though they are indispensable for defining and assessing 
the effect of social policies and measures on the labour market at both national and 
EU level. For example, the lack of comparable data on the structure of earnings 
makes it difficult to assess employment policies aimed at various categories of 
employee in the EU, such as young people. 
9. The Commission has been behind a number of initiatives aimed at combatting 
discrimination as regards earnings, in particular the Directive on equal treatment 
between men and women and the Commission Opinion on an equitable wage, 
which was presented in September 1993. In this Opinion, the Commission 
considered that appropriate measures had to be taken to improve the quality of 
information available at Community level with respect to the structure of earnings. 
As regards the matter of equal pay for men and women, it was important to carry 
out comparisons in terms of the individual characteristics of the individuals 
concerned (e.g. profession, similar areas of activity and lengths of service). 
10 Following the adoption by the Member States of a Community Charter of 
Fundamental Social Rights of Workers, the Commission presented a number of 
initiatives, some of which related to employment contracts and measures to 
combat distortion of competition. The reasons for these measures and the follow-
up work on the impact of this legislation make it necessary to have better 
monitoring of developments as regards earnings, particularly in relation to the 
nature of employment contracts and hours worked. 
11. The initial surveys which were carried out looked only at industry; subsequent 
surveys also covered wholesale and retail trade, banking and insurance. However, 
the increase in jobs in the services sector means that it too must be better covered 
by statistical surveys. The attention which the White Paper gives to the services 
and tourism sectors as sources of new jobs also serves to confirm this. This is why 
Eurostat proposed that the scope of the survey be extended to cover all economic 
activity. Such blanket coverage has, however, proved extremely difficult for some 
Member States. Therefore, the following sections of NACE Rev. 1, which are 
referred to in the draft Regulation, have been declared priority areas for those 
countries unable to carry out surveys covering the entire economy: C to E (all 
industries), F (construction), G (commerce), H (hotels and restaurants), I 
(transport and telecommunications), J (finance) and K (real estate, letting and 
leasing and business services). This choice of areas takes account of the 
Commission's current priorities as regards the compilation of statistics on the 
services sector. While covering the traditional aspects of earnings in the same way 
as in the past, the new survey which is proposed will also cover some aspects for 
the first time, such as type of employment contract, level of education, existence of 
collective agreements, etc. 
12. The "Earnings Statistics" working party has urged that a decision giving the go-
ahead for this statistical information to be gathered be taken as quickly as possible 
in order to allow the businesses and local units to be included in the sample to 
make the necessary arrangements enabling them to respond to the questionnaires 
from 1995 onwards. The Statistical Programme Committee, which met on 1 and 2 
December 1994 in Luxembourg, gave a favourable opinion on this draft 
Regulation. 
13. To this end, the Commission submits the attached draft Regulation for the 
approval of the Council. 
DRAFT COUNCIL REGULATION (EG 
on statistics on the structure and distribution of earnings 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular Article 213 
thereof, 
Having regard to the draft Regulation submitted by the Commission, 
Whereas, in order to carry out the tasks assigned to it, the Commission must be kept informed 
of the position and trend of earnings in the countries of the European Community with regard, 
on the one hand, to their variations in terms of the structure of the labour force and on the other 
hand to the distribution of employees according to earnings level; 
Whereas the development of the European Community and the operation of the internal market 
increase the need for comparable data on the structure of earnings, particularly as a means of 
analysing the progress of economic and social cohesion and for establishing reliable comparisons 
between the Member States and the regions of the European Community; 
Whereas the best method of assessing the situation as regards the structure and distribution of 
earnings is to carry out Community surveys of the structure of earnings using harmonised 
methods and definitions, as was done in 1966, 1972, 1974 and 1978 pursuant to Council 
Regulations (EEC) No 188/64, 2395/71, 178/74 and 494/781; 
Whereas, owing to the changes which occur in the structure of the labour force and in the 
distribution of earnings, particularly as regards economic activities, the results of the earlier 
surveys are no longer up-to-date and do not cover all the countries of the European 
Community; 
Whereas the data currently available for the Member States as a whole supply only averages and 
are not therefore likely to provide any indication either of the relationship between earnings and 
the individual characteristics of wage earners (particularly age, sex, professional status, length of 
service) or of the spread of earnings; 
Whereas statistical information in this field is available only in certain Member States and 
therefore valid comparisons cannot be made and, consequently, the surveys of the structure of 
earnings must be carried out on the basis of common definitions and harmonised methodologies; 
Whereas, in accordance with the principle of subsidiarity, the creation of common statistical 
standards enabling harmonised information to be produced is action which can only be 
effectively undertaken at Community level and these will be implemented in each Member State 
on the authority of the agencies and institutions appointed to compile official statistics; 
Regulation No 188/64 EEC, OJ No 214, 24.12.1964, p. 3634/64 
Regulation (EEC) No 2395/71, OJ No L249, 10.11.1971, p. 52 
Regulation (EEC) No 178/74, OJ No L21, 25.01.1974, p. 2 
Regulation (EEC) No 495/78, OJ No L68, 10.03.1978, p. 3 
Whereas the conduct of a survey of the structure of earnings at Community level is one of the 
priority actions in the Statistical Programme 1993 to 19972; 
Whereas it may be acceptable for the countries which have administrative sources or other 
appropriate statistical sources to use these or perhaps link them up with a simplified 
questionnaire if this method is compatible with the definitions and methods approved and 
corresponds to the whole set of variables required; 
Whereas the Statistical Programme Committee established by Council Decision 89/382 
(EEC/ Euratom)3 has reached a favourable conclusion to the Commission proposal. 
HAS ADOPTED THIS REGULATION 
2 Council Decision No 93/464/EEC, OJ No L 219, 28.8.1993, p. 1 
3 OJL 181,28.6.1989, p.47 
r 
Article 1 
Gêner»! provisions 
The Member States shaD undertake a Community statistical survey on the structure and 
distribution of all employées' earnings that shall be aimed at employees in the economic activities 
defined in Article 3. 
Article 2 
Reference period 
The survey shall be carried out on the basts of statistical information for the financial year of 
1995 and for a corresponding representative month. 
Article 3 
Survey coverage 
The survey shall cover all activities defined in sections C, D, E, F, G, H, I, J and K of the 
Classification of Economic Activities in the European Community, hereinafter referred to as 
MNACE Rev. 1" established by Council Regulation (EEC) No 3037/90 of 9 October I9904 and 
amended by Commission Regulation (EEC) No 761/93 of 24 March 1993s. 
Article 4 
Survey Units 
Collection of data and compilation of statistics on the structure and distribution of earnings shall 
be based on a sample drawn in respect of any of the statistical units defined in the Council 
Regulation (BEC) N° 696793* and which provides information for a sample of employees in 
local units of 10 and more employees classified by size and principal activity. 
4 OJ No L 293, 24.10.1990, p. 1 
5 OJNoLS3,3.4J993,p.l 
OJ No L76, 30.3.1993, p. 1 
• 6 
Article 5 
Characteristics of the required information 
Data shall be collected on: 
1. The local unit to which the sampled employees are attached: 
the region of workplace, size, economic activity classified according to NACE Rev. 1, the 
form of financial and economic control within the meaning of the Commission Directive 
EEC N° 723/80 and the type of collective pay agreement in force. 
2. Each employee in the sample: 
a) gross earnings for a complete pay period for the reference month, including the various 
bonuses regularly paid, additional payments for overtime, shift work, night work, 
weekend work and commissions; likewise included are remuneration for periods of 
absence (leave or sickness) entirely paid by the employer and family allowances and other 
benefits laid down by collective agreements or voluntarily within the local unit; the 
following must be specified separately: 1) total earnings related to overtime; 2) special 
payments for shift work, night work or weekend work; 
b) annual gross earnings in the relevant financial year, i.e. the gross earnings as defined in 2 
a) referred to an annual basis, plus occasional bonuses (such as holiday bonuses, 13th 
month and profit sharing); the amount of occasional bonuses must be specified separately; 
c) the number of hours paid or the number of hours in a standard working week or month for 
which payment is made, the number of paid overtime hours in the pay period and the 
number of holidays, excluding public holidays per year; 
d) the sex, age, occupation classified according to the International Standard Classification of 
Occupations hereinafter referred to as ISCO-88 (COM), level of education and training, 
length of service in the enterprise, working arrangements, i.e. full time or part time and 
type of employment contract. 
Article 6 
Data collection 
1. The survey shall be carried out through the appropriate statistical services of the Member 
States which shall draw up the appropriate methods for collecting the information. 
2. For some characteristics such as level of education and training, as well as type of 
employment contract, the Member States are allowed to carry out trailer surveys in a 
subsample of employees drawn on the main survey. 
4? 
3 Persons required to supply information shall reply to the questions truthfully, completely 
and within the time limits set. The Member States shall take appropriate measures to 
avoid any infringement of the obligation to supply the information referred to in Article 5. 
4. The survey need not be carried out if the Member States have information from other 
appropriate sources which is at least equivalent as regards accuracy, quality and 
timeliness. 
5. The Member States shall transmit to the Commission (Eurostat) at its request all 
information, particularly concerning methodologies, needed for the application of this 
Regulation. 
Article 7 
Representativeness 
The reliability and comparability on a high quality level shall be attained by the use of sampling 
sizes allowing that the relative standard error for the variable average gross hourly earnings by 
section or subsection, where it exists, of NACE Rev. 1 at NUTS 1 level does not exceed 3 %. 
Article 8 
Processing of results 
The Statistical services of the Member States shall process the replies to the questions 
(Article 6 §3) or the information from other sources (Article 6 §4) so as to obtain comparable 
results. 
Article 9 
Transmission of results 
The results shall be transmitted within a delay of 18 months from the end of the calendar year of 
the reference period, including data declared confidential by the Member States pursuant to 
domestic legislation or practice concerning statistical confidentiality, in accordance with the 
provisions of Council Regulation (EEC/Euratom) No 1588/90 of 11 June 19907 on the 
transmission of data subject to statistical confidentiality to the Statistical Office of the European 
Communities. 
OJNoL 151, 15.06.90, p. 1 
$8 
Article 10 
Committee 
The arrangements for implementing the present regulation, in particular: 
definitions to be used, 
accuracy and quality rules, 
the levels of breakdown to be applied to the variables, 
the appropriate forms of the transmitted variables and 
the list of tables to be disseminated 
shall be laid down by the Commission after consulting the Statistical Programme Committee set 
up by Council Decision 89/382 (EEC/ Euratom)8 in conformity with the procedure set out in the 
article 11. 
Article 11 
Procedure 
1. The representative of the Commission shall submit to the Committee a draft of the 
measures to be taken. The Committee shall deliver its opinion on the draft within a time 
limit which the Chairman may lay down according to the urgency of the matter. The 
opinion shall be delivered by the majority laid down in Article 148(2) of the Treaty in the 
case of decisions which the Council is required to adopt on a proposal from the 
Commission. The votes of the representatives of the Member States within the committee 
shall be weighted in the manner set out in that topic. The chairman shall not vote. 
2. The Commission shall adopt measures which shall apply immediately. However, if these 
measures are not in accordance with the opinion of the committee, they shall be 
communicated by the Commission to the Council forthwith. In that event, the Commission 
may defer application of the measures which it has decided for a period of not more than 
one month from the date of such communication. 
The Council, acting by a qualified majority, may take a different decision within the time limit 
referred to the previous paragraph. 
Article 12 
Entry into force 
This Regulation shall enter into force on the twentieth day after its publication in the Official 
Journal of the European Communities. 
This Regulation shall be binding in its entirety and directly applicable in all Member States. 
8 OJL 181 ,28.6.1989, p.47 
ANN1£X 
SPECIAL PROVISIONS 
I. Exceptions to the scope of the survey 
1. For Germany: sections H, I, the division 67 of the J section and section K 
2. For Greece: sections F and K 
3. For Ireland: sections I, J and K 
II. Exceptions to the reference period 
1. For France: the financial year of 1994 and a corresponding representative month 
2. For Austria: the financial year of 1996 and a corresponding representative month 
m. More complete information 
Member States may provide for the supply of more detailed information, for example by 
covering other sections of the NACE Rev. 1 or by covering units with fewer than 10 employees. 
• AX) 
IMPACT ASSESSMENT FORM 
THE IMPACT OF THE PROPOSAL ON BUSINESS, WITH SPECIAL 
REFERENCE TO SMALL AND MEDIUM-SIZED ENTERPRISES 
TITLE OF PROPOSAL: DRAFT COUNCIL REGULATION ON STATISTICS ON THE 
STRUCTURE AND DISTRIBUTION OF EARNINGS 
THE PROPOSAL: 
Taking account of the principle of subsidiarity, why is Community 
legislation necessary in this area and what are its main aims? 
In order to carry out its tasks in the field of economic and social affairs, 
particularly with regard to employment and working conditions, the Commission 
needs to have at its disposal comparable information on the structure and 
distribution of earnings in the Member States of the EU. This need has become 
more pressing because of the new policies set out in the White Paper on Growth, 
Competitiveness and Employment. 
The main aim of this survey is to respond to the political needs which existing 
Community statistics are unable to meet. The Commission has identified a 
number of areas in which statistics on the structure of earnings are necessary. 
the functioning of labour markets in the Community; 
the problem of adjustment of workforces in sectors exposed to 
increased competition; 
the development of indicators enabling regional policies to be 
implemented; 
policy on equal pay for men and women, equitable wages and low 
wages; 
wage differentials by profession; 
wage negotiations. 
There is currently a lack of such data, even though they are indispensable for 
defining and assessing the effect of social policies and measures on the labour 
market at both national and Community level. 
The statistical information available in each of the Member States does not allow 
proper comparisons to be made, one particular reason for this being the 
differences in the nature of the surveys and the existing sources of data. In order 
to ensure that data are comparable, the surveys must be carried out and evaluated 
on the basis of standard definitions and a shared methodology, but without at the 
I 
A4 
same time attempting to harmonize the Member States' existing arrangements for 
the collection of data. In the same way, existing administrative sources must be 
adapted to requirements and drawn on using a methodology set out beforehand. 
Legislation at Community level is the only way of ensuring that the required 
variables will be taken into account and processed in accordance with a common 
set of definitions and methods aimed at guaranteeing the comparability of results. 
THE IMPACT ON BUSINESS: 
2 Who will be affected by the proposal? 
- which sectors of business 
The survey will cover businesses engaging in activities defined in sections C, D, 
E, F, G, H, I, J and K of the Classification of Economic Activities in the 
European Community (NACE Rev. 1). It is intended that some countries' surveys 
should also cover sections L, M, N and O of NACE Rev. 1. 
- which sizes of business (what is the concentration of small and medium-sized 
firms) 
The statistical unit to be used in the survey is individuals in local units with 10 or 
more people in paid employment. 
It is intended that results be obtained for various sizes of business. 
Units employing fewer than 10 persons are not covered by the Regulation, but 
some Member States plan to have their surveys include units with one or more 
employees. 
In the countries in which specific surveys are carried out, these will use a 
sampling method in order to lessen the burden on businesses and the national 
statistical offices. The sampling plans will be drawn up by the national statistical 
offices, which generally use different sampling ratios depending on the size of the 
statistical units to be used. A large proportion of the information requested on 
the questionnaires is available in businesses' administrative files, which means that 
the inconvenience will.not be great. Likewise, the registers of businesses/local 
units also contain some of the information required. In Member States using 
other data sources, the burden on businesses will be considerably less because 
some variables will be derived from these sources. 
I 
- are there particular geographical areas of the Community where these 
businesses are found 
In certain areas of the EU, small and medium-sized enterprises predominate. In 
order to draw up more detailed tables on salary structure at regional level, some 
data are requested at NUTS 1 level. 
What will business have to do to comply with the proposal? 
The units which are to be included in the surveys will be called on to give 
accurate and complete information on the questionnaires which will have been 
sent to them by their national statistical offices (and to return the questionnaires 
within the given deadline). 
However, in the Member States which already carry out this type of survey 
(France, Germany, the Netherlands and the United Kingdom) and those which 
will use administrative data sources (Denmark, Portugal, Finland and Sweden), 
the extra effort required of businesses will not be very great, since the proposed 
variables do not exceed by much the scope of those which already exist. 
What economic effects is the proposal likely to have? 
- on employment 
- on investment and the creation of new businesses 
- on the competitive position of businesses 
Generally speaking, statistical data - and especially data relating to earnings - are 
necessary for implementing and assessing economic and social policies in the 
areas referred to in point 1 above. In this respect, the proposal will have 
beneficial effects on employment and the fight against unemployment, and on 
investment and competitiveness. The access to reliable, up-to-date data provided 
to those responsible for economic and social-policy decisions will enable them to 
better appreciate the socio-economic conditions in which they have to work, and 
will allow employers to define general business policy more clearly. 
The importance of the Community measures which would benefit in terms of 
both implementation and follow-up from the availability of better statistics would 
indicate that the resulting benefits will more than justify the costs involved. 
i 
13 
Does the proposal contain measures to take account of the specific situation 
of small and medium-sized firms? 
Yes. In order to reduce the number of units to be covered by the survey, units 
with fewer than 10 employees will not fall within its scope. Furthermore, the 
percentage of small and medium-sized enterprises included in the survey is 
generally very much lower than that of large enterprises because of the sampling 
method used. 
Consultation 
The Union of Industrial and Employers' Confederations of Europe (UNICE) took 
part from the outset in meetings organized by the "Earnings Statistics" working 
party throughout the phase during which the proposal was being formulated. 
Given the importance (which was mentioned several times) to employers' 
associations of information on the structure and distribution of earnings, the 
representatives of this organization made an active contribution to defining the 
nature of the survey. 
The European Trade Union Confederation (ETUC) took part in some meetings. 
It warmly welcomed the plan to carry out a survey on the structure and 
distribution of earnings at EU level The representatives of this organization were 
pleased with l&ie choice of writfbles tto be used m the survey. 
The mam SUSSES in the Ckmaamssism (DG II and DG V) were consulted on a 
number erf occasions while the draft was being prepared Accordingly, their 
requirements were made Sknown at the meetings of the working party, thereby 
enabling ithe representatives of the statistical services to take better account of 
their suggestions 
The awwscall iplknning of ithe proposed draft has greatly benefited from the 
expérience «ff Menfcer States wliutih carry <®m talis ttype of survey, and from 
studies amfl analyses % soie Commission .and scientific 'bodies on the basis of 
The Stattffljisrati l&mgmnntm Committee, whtûh imet on il and 2 December 1994 in 
Lu^anrntouiasL teawe a ifevouribte aspmion on ; 
FINANCIAL STATEMENT NO 1 
1. TITLE OF THE ACTION 
Draft Council Regulation on statistics concerning the structure and distribution of 
earnings. 
2. BUDGET LINES INVOLVED 
Financial perspectives - 4, other policies 
Sub-section B-5: Consumer protection, internal market, industry and trans-
European networks 
Chapter B5-60: Statistical information policy connected with the completion of the 
internal market and in support of Community policies. 
Line B5-6000: Operating appropriations 
3. LEGAL BASIS 
Article 213 of the Treaty 
Council Decision 89/382/EEC of 19 June 1989 establishing a Committee on the 
Statistical Programmes of the European Communities (OJ L 219, 28.8.1993). 
4. DESCRIPTION OF THE ACTION 
4.1 General purpose of the action 
The purpose of the present Council Regulation is to make harmonized 
statistics on the structure and distribution of workers' earnings in the 
European Union available to all users. These data are essential for defining, 
monitoring and assessing social and labour market policies at the regional, 
national and Community levels. 
The beneficiaries of this action are: the Community Institutions, the 
governments of the Member States, the economic and social 
decision-makers in the Member States and also research institutes, 
universities and the media. 
To conduct this survey at European Union level is one of the priority 
projects of the 1993-1997 framework statistical programme of the 
Community (OJ L 219, 28.8.1993). 
•^ 
4.2 Period covered by the action and procedures for renewing or extending it 
Once-only action in accordance with the draft Council Regulation 
<£urstom, EEC) on stattàÉks concernrag the structure and distribution of 
«nângs (collection and processing of data and for warding of the results to 
feiro^at) covering the period 1996-199^. 
5. CLASSfflCATION OF EXPENDITURE/INCOME 
5.1. Nim-cmnpulsory expenditure 
5.2. IMg^rentiaied appropriations 
5.3. lype&f'incomeenvisaged 
Sales of statistical products (database data and publications) cover some of 
tfee production costs. 
6. TYPEOFEXPENDmJRE/ÏNCOME 
The Commission's contribution represents only part of the meal cost of collecting 
data - of the order of 18% - since the Commission's statistical work is subsidized 
to a very great extent, the operating and administrative costs being home almost 
exclusively t>y the national governments. Nevertheless, the expenditure envisaged 
is essential to promote standardization of te data collected, and for these data to 
be processed and sent to Eurostat 
CofhacRCÈag % the public sector (out of the budgets of the national statistical 
offices) and the private sector (income from sales of statistical products). 
7. FINANCIAL EMECT ON IOTERVEfOTON APPROPRIATIONS 
(PAXrS-OF TÏEE BUDGET) 
7.1 Method of calculating the total cost of the action (definition of unit costs) 
The amount to be taken from the Community budget for the project to 
expend the existing systems for collecting data or setting up new surveys 
on the structure of earnings is calculated as follows: 
\%% of the operating costs for the two/three years of the project: 
conducting the survey (1996) and sending the data to Eurostat 
(1997/1998). 
* 46 
Type of expenditure to be borne by the Member States: production of 
questionnaires, contribution to the costs of collecting, processing, and 
disseminating the data and other operating costs. 
The total action represents an average expenditure of approximately 
ECU 25 million for all the Member States. 
Total contribution to the Member States (18% of total) (ECU 4.50 million) 
7.2. Indicative timetable for commitment and payment appropriations 
The survey will be conducted at the beginning of 1996 and the data sent to 
Eurostat in 1997/1998. It is proposed that payment be made in three 
phases: the first two tranches as a contribution to the cost of collecting and 
processing the data (1996/1997) and a third tranche once the results have 
been received. The last tranche will be payable in either 1997 or 1998 
depending on whether the data are sent to Eurostat in 1997 or 1998. 
C.A. 
PA. 1996 
ECU 4.5 million 
ECU 4.5 million 
30% 1997 
ECU 1.8 million 
40% 1998 
ECU 1.35 million 
30% Total 
ECU 4.5 million 
ECU 4.5 million 
8. ANTI-FRAUD PROVISIONS (AND RESULTS OF IMPLEMENTING 
THEM) 
Payment for the contracts and agreements concluded by the Commission is 
made only on the basis of detailed reports on the completion of the operations 
concerned or the results obtained. 
Statistical information is considered to be an objective instrument for 
evaluating Community action programmes and thus contributes to 
consolidating the anti-fraud provisions. * 
4 t 
9. COST/EFFICIENCY ANALYSIS ITEMS 
9.1. Specific and quantifiable objectives, target population 
The purpose of this Council Regulation is to establish comparable 
statistics on the structure and distribution of earnings of workers in the 
European Union. Following the guidelines in the White Paper on 
Growth, Competitiveness and Employment, and the conclusions of the 
Essen Summit, these statistics aie indispensable for establishing, 
monitoring and assessing regional national and Community policies, in 
particular for monitoring national employment programmes 
9.2. Grounds for the action 
The responsibility for financing this action rests mainly on the Member 
States (cf. 6 above), which have a well-established structure for 
collecting and processing data. Nevertheless, funds from the Community 
budget appear to be necessary, both for countries which are going to 
carry out this type of survey for the first time, and for those which must 
adjust existing surveys to Community needs. The purpose of this 
financial contribution is to co-finance part of the costs of collecting and 
processing data. 
The purpose of this action is to achieve four results, viz. : 
- to provide the Community Institutions with the quantitative data for 
drawing up, monitoring and evaluating any programme of action 
pursuant to Article 3 (2) of the Financial Regulation: "it therefore 
contributes to more effective and relevant use of the Community 
- to provide the national governments with comparable statistics on all 
the Member States for evaluating and monitoring the progress of 
Community policies; 
- to provide political, economic and social decision-makers in the 
Community with the data necessary to take and assess decisions in 
their respective fields of action: it is therefore a key component of the 
European information market; 
- to provide the scientific community with the information necessary to 
further study and obtain more information on economic and social life 
in the Community. 
The results of the action will contribute to improving the statistical 
information used in the work linked to social policy, economic cohesion 
and convergence in the internal market. 
%4% 
Statistical information is collected using a highly-subsidized system, in 
which the national systems have a responsibility as regards each Member 
State. The Community Statistical Programme will become an integral 
part of the national statistical programmes, thus contributing to creating 
a European statistical area. 
The potential of multiplier effects is fairly small. Nevertheless, the data 
concerned by the draft regulation will be of increased interest in that 
users will have access to a set of data which will enable them to make 
international comparisons of the structure and distribution of earnings. 
The specific results of the action could be affected if some of the 
Member States - or the Commission - did not succeed in releasing the 
resources needed for the action to succeed. 
9.3. Monitoring and assessing the action 
The action forms part of the Community Statistical Programme, which is 
monitored continuously by means of a general table which determines 
the objectives and resources required for each project as a function of 
the objective/performance ratio. At the beginning of each year, Eurostat 
produces a progress report on the programme as at the end of the 
previous year. It comprises three parts as follows: 
the first summarizes the main achievements of the year in respect of each 
policy; 
the second describes the objective of each project and the results 
achieved; 
the third gives statistics on the use of human, budgetary, computer and 
administrative resources in the course of the previous year. 
9.4. Cohesion with the financial programming 
The Council Decision of 22 July 1993 on the framework programme for priority actions in 
the field of statistical information 1993 to 1997 provides for a survey to be carried out on 
the structure of earnings.1 
'OJL 219, 28.8.1993 
• ^ 
10. ADMfoHSrmATTVE EXPENDITURE (PART A OF THE BUDGET) 
10.1. Does the proposed action involve an increase in the number of 
Commission staff? If so, how many? 
Yes: 1B post as from 1995 
The administrative resources required for this action will be obtained by 
means of credits allocated by the Commission, including staffing and 
supplementary amounts approved by the budgetary authority. 
10.2. State the amount of staff and administrative expenditure involved in the 
proposed action. Explain the method of calculation 
Indicators: annual cost of the post for 1995 (estimate) 
Base: Average cost of aB2 post: ECU 90 009, of which ECU 73 711 is 
staff expenditure and ECU 16 298 administrative expenditure 
Ej^pciud^uce: 
Fiiiaacinlymih 1995 
etaaq. Title Al 
StafT 
73 711 Title A2 
Administration 
\62M 
Costin constant ecus (1995 value). 
« &> 
ADDITIONAL STATEMENT CONCERNING THE EFTA MEMBERS OF THE 
EEA 
TITLE OF THE PROPOSED LEGISLATION 
Proposal for a Regulation on the statistics of the distribution and structure of earnings 
IMPACT ON THE EFTA MEMBERS OF THE EEA 
The EFTA members of the EEA have an interest in the proposed Regulation, and have 
been associated in its discussion. 
All the EFTA members of the EEA took part in the meetings of the Working Party 
relating to this matter. 
FINANCIAL STATEMENT 
The financial statement annexed to this document concerns the Member States of the 
European Union. 
24 
ESN 0254-1475 
COM(95) 287 final 
DOCUMENTS 
EN 17 
Catalogue aamber : CB-CO-95-318-EN-C 
ISBN 92-77-90914-5 
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