Draft COUNCIL REGULATION (EC) on statistics on the structure and distribution of earnings
Date: 1995-06-27
Institutions: European Commission
Subjects: EU statistics, pay, statistical method

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  ) 

1. 

2. 

3. 

4. 

EXPLANATORY  MEMORANDUM 

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. 

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. 

in  particular, 

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 
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. 

labour-market  flexibility,  job-creation  and 

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. 

6. 

7. 

8. 

9. 

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. 

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. 

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. 

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. 

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 

11. 

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. 

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 
3 

Council Decision No 93/464/EEC, OJ No L 219, 28.8.1993, p. 1 
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 
5 

OJ No L 293, 24.10.1990, p. 1 
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) 

b) 

c) 

d) 

1. 

2. 

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; 

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; 

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; 

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 

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. 

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 

4. 

5. 

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. 

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. 

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. 

2. 

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. 

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  economic  and  social 
decision-makers  in  the  Member  States  and  also  research  institutes, 
universities and the media. 

the  Member  States, 

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 
(PAXrS-OF TÏEE BUDGET) 

IOTERVEfOTON  APPROPRIATIONS 

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 

1997 

1998 

ECU 4.5 million 
30% 

ECU  1.8 million 
40% 

ECU 1.35 million 
3 0% 

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 
to 
consolidating the anti-fraud provisions. 

thus  contributes 
* 

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 

Title Al 

Title A2 

Ej^pciud^uce: 

Fiiiaacinlymih  1995 
etaaq. 

StafT 

73 711 

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 

Office  for Officiai Publications of the European Communities 

L-2985 Luxembourg 

2T~