Council Regulation (EC) No 530/1999 of 9 March 1999 concerning structural statistics on earnings and on labour costs
Date: 1999-03-09
Institutions: Council of the European Union
Subjects: EU Member State, EU statistics, pay, small and medium-sized enterprises, wage cost

L 63/6

EN

Official Journal of the European Communities

12. 3. 1999

I

(Acts whose publication is obligatory)

COUNCIL REGULATION (EC) No 530/1999

of 9 March 1999

concerning structural statistics on earnings and on labour costs

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 should be kept informed of the level and
composition of labour costs and of the structure and
distribution of earnings in the Member States;

Whereas the development of the Community and the
operation of the internal market increase the need for
comparable data on the level and composition of labour
costs and on the structure and distribution of earnings,
particularly as a means of analysing the progress of
economic and social cohesion and for establishing reli-
able and relevant comparisons between the Member
States and the regions of the Community;

costs

labour

and earnings

Whereas the best method of assessing the situation as
regards
to compile
Community statistics using harmonised methods and
definitions as has been done on earlier occasions, most
recently for 1996 in the case of the level and composition
of labour costs pursuant to Regulation (EC) No 23/97 (1)
and for 1995 in the case of the structure and distribution
of earnings pursuant to Regulation (EC) No 2744/95 (2);

is

Whereas, to reflect changes taking place in the structure
of the labour force, in the distribution of earnings, and in
the composition of expenditure by enterprises on wages
and related employers’ contributions, the statistics need to
be regularly updated;

Whereas, pursuant to Regulation (EC) No 2223/96 (3) the
European System of National and Regional Accounts in
the European Community (ESA-95) is the term of refer-
ence for standards, definitions and accounting practices in
the Member States in order to meet the Community
needs; whereas this necessitates the establishment of
complete, reliable and comparable statistical sources at

(1) OJ L 6, 10. 1. 1997, p. 1.
(2) OJ L 287, 30. 11. 1995, p. 3.
(3) OJ L 310, 30. 11. 1996, p. 1. Regulation as amended by
Regulation (EC) No 448/98 (OJ L 58, 27. 2. 1998, p. 1).

national and regional level; whereas the levels of break-
down to be applied to the variables are limited to what is
necessary to ensure comparability with previous statistics
and compatibility with national accounts requirements;

Whereas the European Central Bank (ECB) needs infor-
mation on the level and composition of labour costs and
on the structure and distribution of earnings in order to
assess the economic development in the Member States in
the context of a single European monetary policy;

Whereas statistical information in this field is available
only in certain Member States and valid comparisons
cannot therefore be made; whereas Community statistics
results
should consequently be produced and the
processed on the basis of common definitions and
harmonised methodologies,
the
standards
international organ-
isations;

approved by relevant

taking into account

Whereas presently not all Member States collect complete
data in sections M (Education), N (Health and social work)
and O (Other Community, social and personal service
activities); whereas it is therefore appropriate to decide on
their possible inclusion in the scope of this Regulation in
the light of a report to be submitted by the Commission
on the basis of pilot studies on the feasibility of collecting
complete data in these sectors;

Whereas although the importance of complete data of all
segments of the economy should be fully recognised, it
should be carefully weighed against the reporting possi-
bilities and the response burden in specific areas,
in
particular in relation to small and medium-sized enter-
prises (SMEs); whereas it is therefore appropriate for the
Commission to carry out pilot studies on the feasibility of
collecting complete data from statistical units with less
than ten employees and that the Council decides on this
matter in the light of a report to be submitted by the
Commission, within four years of the entry into force of
this Regulation; whereas the use of administrative records
may be helpful in the meanwhile and should be encour-
aged;

12. 3. 1999

EN

Official Journal of the European Communities

L 63/7

Whereas, in accordance with the principle of subsidiarity,
the creation of common statistical standards enabling
harmonised information to be produced is a proposed
action the objectives of which can, by reason of its scale
or effects be better achieved by the Community; whereas
these standards will be implemented in each Member
State on the authority of the agencies and institutions
appointed to compile Community statistics;

Whereas it seems appropriate to make provisions for
exceptions for certain Member States, in order to take
account of particular technical difficulties encountered by
such States in the collection of certain types of informa-
tion, provided that the quality of the statistical informa-
tion is not seriously affected;

Whereas the production of specific Community statistics
is governed by the rules set out in Council Regulation
(EC) No 322/97 of 17 February 1997 on Community
Statistics (1);

Whereas the Statistical Programme Committee estab-
lished by Decision 89/382/EEC, Euratom (2) has been
consulted in accordance with Article 3 of the aforesaid
Decision,

HAS ADOPTED THIS REGULATION:

Article 1

General provisions

The national authorities and Eurostat
shall produce
Community statistics on the level and composition of
labour costs and on the structure and distribution of
employees’ earnings, in the economic activities defined in
Article 3.

Article 2

Reference period

1.
The statistics on the level and composition of labour
costs shall be produced for the calendar year 2000 and at
four-yearly intervals thereafter.

2.
The statistics on the structure and distribution of
earnings shall be produced for the calendar year 2002 and
for a representative month in that year, and at four-yearly
intervals thereafter.

Article 3

Scope

1.
The statistics shall cover all economic activities
defined in sections C (Mining and quarrying), D (Manu-
supply), F
facturing), E (Electricity, gas

and water

(1) OJ L 52, 22. 2. 1997, p. 1.
(2) OJ L 181, 28. 6. 1989, p. 47.

(Construction), G (Wholesale and retail trade; repair of
motor vehicles, motorcycles and personal and household
goods), H (Hotels and restaurants), I (Transport, storage
and communications), J (Financial
intermediation), K
(Real estate, renting and business activities), M (Educa-
tion), N (Health and social work) and section O (Other
community, social and personal service activities) of the
general industrial classification of economic activities in
the European Community, hereinafter
referred to as
‘NACE Rev. 1' established by Regulation (EEC) No 3037/
90 of 9 October 1990 on the statistical classification of
economic activities in the European Community (3).

The inclusion of economic activities defined in
2.
sections M (Education), N (Health and social work) and O
(Other Community, social and personal service activities)
of NACE Rev. 1 in the scope of this Regulation shall be
optional for the reference years 2000 and 2002. They may
also be made optional for the subsequent years in accord-
ance with the procedure set out in Article 12, taking into
account the results of pilot studies in this area, in partic-
ular those under Council Regulation (EC, Euratom) No
58/97 of 20 December 1996 concerning structural busi-
ness statistics (4).

Article 4

views of

statistical units with less

the
the Statistical
Taking into account
Programme Committee,
the Commission shall, within
four years of the date of entry into force of this Regula-
tion, compile a report taking into account the results of
pilot studies, in particular, on the basis of existing sources
in the area of
than ten
employees, and submit it to the Council. The report shall
assess the application of the provisions of this Regulation
relating to units with less than ten employees. The report
shall weigh the importance of complete data against the
reporting possibilities and the response burden. Following
if necessary, submit
this report the Commission may,
appropriate initiatives to the Council for the amendment
of this Regulation.

Article 5

Statistical units

The compilation of the statistics shall be based on local
units and enterprises as defined in Council Regulation
(EEC) No 696/93 of 15 March 1993 on the statistical
units for the observation and analysis of the production
system in the Community (5).

(3) OJ L 293, 24. 10. 1990, p. 1. Regulation as amended by
Regulation (EEC) No 761/93 (OJ L 83, 3. 4. 1993, p. 1).

(4) OJ L 14, 17. 1. 1997, p. 1.
(5) OJ L 76, 30. 3. 1993, p. 1.

L 63/8

EN

Official Journal of the European Communities

12. 3. 1999

Article 6

Characteristics of the required information

1.
In the case of statistics on the level and composition
of labour costs, information shall be provided at least on:

(a) the following characteristics relating to the local unit:

— the region (at NUTS 1 level),

— the size of the enterprise to which the local unit
belongs (classified as one of the following: 10-49,
or more
500-999,
50-249,
employees),

250-499,

1 000

— the economic activity (at

the division level of

NACE Rev. 1);

(b) the following variables:

to employees’

— total annual labour costs, distinguishing wages and
salaries (broken down into direct remuneration
savings
and bonuses, payments
schemes, payment for days not worked and wages
and salaries in kind), the employer’s social contri-
(broken down into actual and imputed
butions,
training costs,
social contributions), vocational
other expenditure and taxes, and also subsidies
directly related to labour costs,

— the average annual number of employees, distin-
part-time

employees,

guishing
employees, and apprentices,

full-time

— the annual number of hours worked and the
annual number of hours paid, in each case distin-
part-time
guishing
employees, and apprentices.

employees,

full-time

2.
In the case of statistics on the structure and distribu-
tion of earnings, information shall be provided at least on:

(a) the following characteristics relating to the local unit
to which the sampled employees are attached:

— the region (at NUTS 1 level),

— the size of the enterprise to which the local unit
belongs (classified as one of the following: 10-49,
or more
500-999,
50-249,
employees),

250-499,

1 000

— the economic activity (at

the devision level of

NACE Rev. 1),

— the form of economic and financial control within
the meaning of Commission Directive 80/
723/EEC of 25 June 1980 on the transparency of

financial relations between Member States and
public undertakings (1),

— the type of collective pay agreement in force;

(b) the following characteristics relating to each employee

in the sample:

— sex,

— age,

— occupation classified according to the Inter-
national Standard Classification of Occupations,

— highest completed level of education and training,

— length of service in the enterprise,

— whether full time or part time,

— type of employment contract,

(c) the following details of earnings:

— gross earnings for a representative month (distin-
guishing separately earnings related to overtime
and special payments for shift work),

— gross annual earnings in the reference year (distin-
guishing separately bonuses paid irregularly),

— working-time (the number of hours paid in a
standard working month, the number of overtime
hours paid in the month and the annual leave
entitlement).

Article 7

Data collection

Surveys shall be carried out through the appropriate
1.
national authorities, which shall draw up the appropriate
methods
taking into
account the response burdens, notably on SMEs.

for collecting the information,

2.
Employers and other persons required to supply
information shall reply to the questions completely and
within the time limits set. The Member States shall take
appropriate measures to avoid infringement of the obliga-
tion to supply the information referred to in Article 6.

3.
In order to reduce the burden on enterprises, partic-
ularly on SMEs, surveys need not be carried out if the
national authorities have information from other appro-
priate sources or are able to produce estimates of neces-
sary data using statistical estimation procedures where
some or all of the characteristics have not been observed
for all
the units for which the statistics are to be
compiled.

(1) OJ L 195, 29. 7. 180, p. 35. Directive as last amended by

Directive 93/84/EEC (OJ L 254, 12. 10. 1993, p. 16).

12. 3. 1999

EN

Official Journal of the European Communities

L 63/9

Article 8

Processing of results

Article 12

Procedure

The national authorities shall process the replies to the
questions referred to in Article 7(2) or the information
from other sources, as referred to in Article 7(3), so as to
obtain comparable results.

Article 9

Forwarding of results

The results shall be forwarded to Eurostat within a period
of 18 months from the end of the reference year.

Article 10

Quality

1.
The national authorities shall ensure that the results
reflect the true situation of the total population of units
with a sufficient degree of representativity.

The national authorities shall forward to Eurostat at
2.
its request after each reference period a report containing
all relevant information relating to the implementation of
the Regulation in the Member State concerned, to enable
the quality of the statistics to be evaluated.

Article 11

Implementation measures

The measures necessary for the implementation of this
to take account of
Regulation,
economic and technical changes, and in particular:

including measures

(i) the treatment of economic activities defined in
sections M, N and O of NACE Rev. 1 (Article 3(2));

(ii) the definition and breakdown of the information to

be provided (Article 6);

(iii) the appropriate technical format for the transmission

of the results (Article 9);

(iv) quality evaluation criteria (Article 10);

(v) derogations, in duly justified cases, for periods 2004

and 2006, respectively (Article 13(2)),

1.
The Commission shall be assisted by the Statistical
Programme Committee, hereinafter referred to as ‘the
Committee'.

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 deliv-
ered 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 Article. The chairman shall not vote.

3.

(a) The Commission shall adopt the measures envis-
aged if they are in accordance with the opinion of
the Committee.

(b) If the measures envisaged are not in accordance
with the opinion of
the Committee, or if no
the Commission shall,
opinion is delivered,
without delay, submit to the Council a proposal
relating to the measures to be taken. The Council
shall act by a qualified majority.

If, on the expiry of a period of three months from
the date of referral to the Council, the Council has
not acted, the proposed measures shall be adopted
by the Commission.

Article 13

Derogations

1. Derogations from the provisions of Articles 2, 3 and
6 for the reference years 2000 and 2002 are set out in the
Annex.

2.
For the years 2004 and 2006, respectively, deroga-
tions from Articles 3 and 6 may be decided insofar as the
national statistical system requires major adaptations, in
accordance with the procedure set out in Article 12.

Article 14

Entry into force

shall be laid down for each reference period at least nine
months before the beginning of the reference period, in
accordance with the procedure set out in Article 12.

This Regulation shall enter into force on the twentieth
day following that of
its publication in the Official
Journal of the European Communities.

L 63/10

EN

Official Journal of the European Communities

12. 3. 1999

This Regulation shall be binding in its entirety and directly applicable in all Member
States.

Done at Brussels, 9 March 1999.

For the Council

The President

W. RIESTER

ANNEX

DEROGATIONS

I. Derogations from Article 2

1. Germany: the first statistics on the structure and distribution of earnings under this Regulation shall be
produced for the reference year 2001 instead of 2002. Subsequent statistics on the structure and
distribution of earnings shall be produced for the reference year 2006 and at four-yearly intervals
thereafter.

2. France, Germany, Ireland, Sweden, and the United Kingdom: the statistics for the reference years 2000
and 2002 may refer to the financial year most closely corresponding to these calendar years, but this
will not affect the deadlines for forwarding the data referred to in Article 9.

II. Derogations from Article 3

1. Germany: the economic activities defined in sections H (Hotels and restaurants), I (Transport, storage
and communications) and K (Real estate, renting and business activities) of NACE Rev. 1 shall be
optional for the reference years 2000 and 2001.

2. Ireland: the economic activities defined in section H (Hotels and restaurants) shall be optional for the

reference year 2000.

3. Ireland: the economic activities defined in sections I (Transport, storage and communications), division
67 of section J and section K (Real estate, renting and business activities) of NACE Rev. 1 shall be
optional for the reference year 2002.

III. Derogations from Article 6

1. Austria, Belgium, Italy and the Netherlands: for the reference years 2000 and 2002, the characteristics

referred to in Article 6 may refer to the enterprise instead of the local unit.

2. Italy: for the reference year 2000 the characteristics referred to in Article 6(1)(b): payments to
employees’ savings schemes, other expenditures and taxes paid and also subsidies received by the
employer shall be optional.