Wages and Labour Cost

Wages


Average monthly wage - in public sector is the gross wage of an employee in 
the public sector for the work performed. This is constituted by the following        
elements:
- Basic wage for job performed
- Additional payment for managerial duties
- Additional payment for years at work
- Additional payment for difficult working conditions
- Other regular additional payments

Social security contributions and taxation on income are not deducted from 
the average monthly wage.
Real growth of wage - is the ratio of annual percentage change of wages 
over the annual percentage change of price index during the reference period.
Minimum wage - is the lower wage paid out for an employee approved 
by the Government.

Structural survey of economic enterprises

The data on wages by economic activities are estimated by the Structural Survey 
of Economic Enterprises.
The observation units are active non - agricultural enterprises in Albania of 
all legal forms (are excluded financial activities, education, health and culture).       
The classification of enterprises is based on the Nomenclature of Economic       
Activities, NACE Rev 1.1. Population consists of all enterprises which according       
to statistical register were active in December of the reference year.
Enterprises with 1-9 employed are surveyed by sample survey.       
Enterprises with 10 and more employed are surveyed exhaustively.

Wages and salaries - include direct remuneration, bonuses and allowances 
wages and salaries paid to employees (in cash or in nature valuated in value)        
for the work done during the reference period.

Average monthly wage for an employee - is the ratio of wages and salaries 
with the number of employees.

Labour Cost Survey

The information on the structure of labour costs is collected through Labour Costs
Survey which was conducted for the first time in 2013. The data collected are      
detailed by economic activity and by size of enterprises. This survey is conducted      
once in four years.

The sample frame used for the 2013 LCS is Statistical Register of Enterprises. 
The coverage of the labour cost survey are enterprises with ten or more        
employees that were active at the end of 2012, according to all economic        
activities except agricultural activities and activities of households as employers,        
goods production activities of fixed services to use their families as well as the        
activities of international organizations and bodies .

The reference year for the Labour Cost Survey 2013 is financial year 2012. 
The sample size for the 2013 Labour Cost Survey was 2,383 enterprises.         
Prior the full scale labour cost survey of 2013, a pilot one has been conducted        
in 2012 in 263 enterprises.

 

Introduction

Wages and labour costs

The main purpose of collecting information on wages is to monitor the level, distribution and change of wages and salaries over one year. These statistics offer the possibility of comparing wages and salaries in different sectors of economy and of different occupation-groups. The real growth of wages and salaries, and the gender pay gap, play an important role to monitor the economic indicators used by policy-makers, employers and unions to assess the conditions of labour demand and labour supply.

Data on wages and salariesare being provided from two main sources: administrative data and enterprise based surveys.

Wages and salaries based on administrative sourcesin Albania refer to the official minimum wage and average gross monthly wage for an employee in the public sector. Data on average monthly wages in public sector are collected by INSTAT with quarterly basis. These data provide detailed information for each group of occupations according to the International Standard Classification of Occupations (ISCO-08). Every end of year, the average monthly wage in public sector is detailed for each economic activity based on the Nomenclature of Economic Activities (NACE).

Wages and salaries are based on the Structural Survey of Enterprisesrepresent average gross salary for an employee by economic activities covered by this survey (Industry, Transport and Telecommunication, Trade and some sectors of Services).

Data on labour costsare collected through Labour Costs Survey. The main objective of the survey is to measure the level and structure of labour costs, or total costs for employers paid for their employees.

Besides wage components such as direct remuneration, bonuses and allowances, payments to employees' saving schemes, payments for days not worked, as well as wages and salaries in kind, these include social security contributions paid by the employer (statutory, under collective agreements, contractual or voluntary), together with employers' 'imputed' social contributions (e.g. guaranteed remuneration in the event of sickness or payments to employees leaving the business). Costs of vocational training and taxes and subsidies relating to the employment of staff are also recorded. At the same time, the survey also asks about the number of full-time jobs and the number of hours worked and paid.

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