LABOUR COST IN THE REPUBLIC OF CROATIA, 2004

 

In the Republic of Croatia the Labour Cost Survey was conducted for the first time in 2005 according to EU regulations and based on the pilot survey conducted in 2004.

 

In 2004, the average monthly labour cost per employee in the Republic of Croatia amounted to 7 889 kuna.

 

The average monthly labour cost per hour actually worked amounted to 52.29 kuna.

 

The largest share of 84.3% (or 6 647 kuna per employee) of the total labour cost goes on wages and salaries, 15.7% (or
1 238 kuna per employee) on social contributions and 1.1% on vocational training costs and other costs (or 84 kuna per employee).

 

The highest labour cost per employee and per hour actually worked was recorded in services (8 309 kuna per employee, 55.22 kuna per hour actually worked) and the lowest one in industry (7 251 kuna per employee, 47.70 kuna per hour actually worked).

 

The highest labour cost per employee  was recorded in the activity Financial intermediation, 12 220 kuna, and the lowest one in the activity Fishing, 6 423 kuna.

 

 

1.   AVERAGE MONTHLY LABOUR COST PER EMPLOYEE AND PER HOUR ACTUALLY WORKED IN THE REPUBLIC OF CROATIA, 2004

 

Kuna

 

Average monthly labour cost

Per employee

Per hour actually worked

 

 

 

Total1)

7 889

52,29

Wages and salaries

6 647

44,06

Social contributions

1 238

  8,20

Vocational training costs

   45

  0,30

Other costs

   39

  0,26

Subsidies2)

 (80)

 (0,53)

 

1)   The total labour cost is a sum of wages and salaries, social contributions, vocational training costs and other costs.

2)   Subsidies are deduced from the total labour cost.

( )   Less accurate estimation (20≥CV≥10)

 

 

2.      AVERAGE MONTHLY LABOUR COST PER EMPLOYEE, ACCORDING TO NKD 2002. ACTIVITY SECTIONS, 2004

Kuna

 

Activity section

Average
 monthly labour cost, total

Compensations of employees

Vocational
training costs

Other costs

Less:
subsidies

 

Total

Wages
 and salaries

Social
contributions

 

 

 

 

 

 

 

 

 

Total

7 889

7 885

6 647

1 238

45

39

(80)

 

 

 

 

 

 

 

 

 

A

Agriculture, hunting and forestry

7 309

7 256

6 135

1 122

.

40

((19))

B

Fishing

6 423

6 519

5 673

846

((17))

48

.

C

Mining and quarrying

10 451

10 245

8 993

1 252

117

88

.

D

Manufacturing

6 991

6 947

5 818

1 129

41

43

40

E

Electricity, gas and water supply

8 601

8 526

7 182

1 343

29

57

.

F

Construction

7 356

7 289

6 240

1 049

18

64

(15)

G

Wholesale and retail trade; repair of motor vehicles, motorcycles and
personal household goods

6 818

6 800

5 803

998

35

35

52

H

Hotels and restaurants

6 576

6 678

5 639

1 039

.

36

.

I

Transport, storage and communication

9 265

9 469

7 514

1 955

93

45

342

J

Financial intermediation

12 220

12 061

10 086

1 976

124

36

(2)

K

Real estate, renting and business activities

8 858

8 755

7 475

1 281

93

52

((43))

L

Public administration and defence;
compulsory social security

9 334

9 254

7 843

1 411

(53)

((31))

.

M

Education

7 975

8 068

6 916

1 152

((34))

(10)

.

N

Health and social work

8 837

8 859

7 551

1 309

23

16

.

O

Other community, social and personal service activities

8 287

8 425

7 134

1 291

(28)

52

(219)

P

Activities of households

-

-

-

-

-

-

-

Q

Extra- territorial organisations and bodies

-

-

-

-

-

-

-

 

.       Figure is not zero, but is not published because of extremely inaccurate estimation (CV≥30)

(( ))   Inaccurate estimation (30≥CV≥20)

( )     Less accurate estimation (20≥CV≥10)

 

 

 

3.   AVERAGE MONTHLY LABOUR COST PER EMPLOYEE, ACCORDING TO NKD 2002. ACTIVITY SECTORS, 2004

Kuna

Activity sector

Average monthly
 labour cost, total

Compensations of employees

Vocational
training costs

Other costs

Less:
subsidies

Total

Wages and
salaries

Social
contributions

 

 

 

 

 

 

 

 

Total

7 889

7 885

6 647

1 238

45

39

(80)

Agriculture

7 284

7 235

6 121

1 114

.

40

((23))

Industry

7 251

7 196

6 071

1 124

37

50

31

Services

8 309

8 339

7 025

1 313

51

32

(113)

 

 

.       Figure is not zero, but is not published because of extremely inaccurate estimation (CV≥30)

(( ))   Inaccurate estimation (30≥CV≥20)

( )     Less accurate estimation (20≥CV≥10)

 

 

4.   SHARE OF AVERAGE MONTHLY LABOUR COSTS PER EMPLOYEE, ACCORDING TO NKD 2002. ACTIVITY SECTORS, 2004

%

Activity sector

Average monthly labour cost,
total

Compensations of employees

Vocational training costs

Other costs

Less:
subsidies

Total

Wages
 and salaries

Social
contributions

 

 

 

 

 

 

 

 

Total

100,0

100,0

84,3

15,7

0,6

0,5

(1,0)

Agriculture

100,0

99,3

84,0

15,3

.

0,6

((0,3))

Industry

100,0

99,2

83,7

15,5

0,5

0,7

0,4

Services

100,0

100,4

84,6

15,8

0,6

0,4

(1,4)

 

.       Figure is not zero, but is not published because of extremely inaccurate estimation (CV≥30)

(( ))   Inaccurate estimation (30≥CV≥20)

( )     Less accurate estimation (20≥CV≥10)

 

 


5.     AVERAGE MONTHLY ACTUALLY WORKED HOURS AND PAID HOUR PER EMPLOYEE, ACCORDING TO NKD 2002. ACTIVITY SECTIONS,       2004

 

Activity section

Hours worked

Share of hours actually worked in paid hours
(paid hours = 100)

 

Hours actually worked

Paid hours

 

 

 

 

 

TOTAL

151

175

86,2

 

 

 

 

 

AGRICULTURE

145

172

84,4

A

Agriculture, hunting and forestry

144

171

84,3

B

Fishing

156

177

88,0

 

 

 

 

 

INDUSTRY

152

178

85,7

C

Mining and quarrying

150

173

87,1

D

Manufacturing

151

177

85,2

E

Electricity, gas and water supply

150

177

84,7

F

Construction

156

179

87,1

SERVICES

151

174

86,6

G

Wholesale and retail trade; repair of
motor vehicles, motorcycles and
personal household goods

154

174

88,7

H

Hotels and restaurants

152

178

85,8

I

Transport, storage and communication

149

176

84,7

J

Financial intermediation

150

174

86,3

K

Real estate, renting and business activities

156

177

87,8

L

Public administration and defence; compulsory social security

150

175

85,6

M

Education

146

168

86,7

N

Health and social work

146

172

85,0

O

Other community, social and personal service activities

151

177

85,5

P

Activities of households

-

-

-

Q

Extra-territorial organisations and bodies

-

-

-

 

 

 

6.     AVERAGE MONTHLY LABOUR COST PER HOUR ACTUALLY WORKED, ACCORDING TO NKD 2002. ACTIVITY SECTORS, 2004

Kuna

Activity sector

Average monthly labour cost,
total

Compensations of employees

Vocational training costs

Other costs

Less:
subsidies

Total

Wages and salaries

Social
contributions

 

 

 

 

 

 

 

 

Total

52,29

52,27

44,06

8,20

0,30

0,26

(0,53)

Agriculture

50,35

50,01

42,31

7,70

.

0,28

((0,16))

Industry

47,70

47,34

39,94

7,40

0,24

0,33

0,21

Services

55,22

55,42

46,69

8,73

0,34

0,21

(0,75)

 

 

.       Figure is not zero, but is not published because of extremely inaccurate estimation (CV≥30)

(( ))   Inaccurate estimation (30≥CV≥20)

( )     Less accurate estimation (20≥CV≥10)

 

 

 

 

7.   SHARE OF AVERAGE MONTHLY LABOUR COSTS PER HOUR ACTUALLY WORKED,  ACCORDING TO NKD 2002. ACTIVITY SECTORS, 2004

%

Activity sector

Average monthly labour cost,
total

Compensations of employees

Vocational
 training costs

Other costs

Less:
subsidies

Total

Wages and salaries

Social contributions

 

 

 

 

 

 

 

 

Total

100,0

100,0

84,3

15,7

0,6

0,5

(1,0)

Agriculture

100,0

99,3

84,0

15,3

.

0,6

((0,3))

Industry

100,0

99,2

83,7

15,5

0,5

0,7

0,4

Services

100,0

100,4

84,6

15,8

0,6

0,4

(1,4)

 

 

.       Figure is not zero, but is not published because of extremely inaccurate estimation (CV≥30)

(( ))   Inaccurate estimation (30≥CV≥20)

( )     Less accurate estimation (20≥CV≥10)


 

NOTES ON METHODOLOGY

 

It was in 2005 that the Labour Cost Survey was for the first time conducted in the Republic of Croatia, according to EU regulations and based on the 2004 Pilot Survey.

 

Aim of the Labour Cost Survey

 

The conduction of the Labour Cost Survey provided for results on the value and structure of labour costs at the Croatian labour market. The obtained results will enable employers and designers of economic policy an insight in the situation and structure of the labour costs at the Croatian labour market as well as their comparison with the international labour market, especially among the EU Member States. They will also show the influence of legislative on the value of labour costs determined by employers when employing new persons.

 

Observation units

 

Observation units are all legal entities (companies, enterprises, institutions, bodies, funds, organizations and parts of legal entity engaged in an economic activity differnt from that of the legal entitiy as well as those situated in another town/municipality) on the teritory of the Republic of Croatia with at least 10 employees. Observation units have been selected by using a sample method.

 

Sample design

 

The sample frame for the Labour Cost Sruvey consists of all legal entities engaged in an economic activity on the territory of the Republic of Croatia and employing at least 10 persons. The sample frame is stratified on the basis of a dominant economic activity of the legal entity at the NKD 2002. division level and according to its size.

 

According to the size, legal entities are divided to small ones (employing up to 49 persons), medium-sized ones (employing up to 249) and large ones (employing 250 and more persons). The sample includes all large enerprises and a stratified random sample of small and medium-sized ones.

 

The final sample size consists of 3 428 legal entities.

 

Coverage

 

The Labour Cost Survey includes all persons employed in legal entities selected into the sample who signed a work contract with an employer for a fixed or specified period of time, irrespective of whether they worked full time or less than full time and who received a wage. Persons who worked on the basis of work agreements or author's contracts, contracts with juveniles’ and students’ employment services, pupils and students in training and employees who did not receive wages are excluded.

 

Periodicy of data collection

 

Data on labour costs are collected every four years on the basis of the Act on Official Statistics of the Republic of Croatia (NN, No. 103/03).

Definitions

 

The total number of employees includes the number of persons who signed a work contract with an employer for a fixed or specified period of time, irrespective of whether they worked full time or less than full time, who received a wage.

 

Employees who did not receive a wage, employees who received a reimbursement or a compensation (persons on maternity leave, on sick leave lasting more than 42 days etc.), persons who work on the basis of work agreements or author's contracts, contracts with juveniles’ and students’ employment services are excluded.

 

The total labour cost includes compensations of employees (wages and salaries and social contributions paid by an employer), vocational training costs and other labour costs, less subsidies.

 

Wages and salaries include gross wage (basic gross wage and additional payments, payments by results and company profit-sharing rights), compensations for annual leave, holiday allowance, exceptional length-of-service awards and payments in kind – payments in company products, costs of housing for employees, car costs and other payments in kind.

 

Basic wage and additional payments include payments of basic wage, additional payments for the length of service, shift pay, duty payments, working at home, night work, working overtime, working on Sundays and public holidays, additional pay for risks of hazards, bonuses for regular presence at work and for working with clients.

 

Payments based on individual business efficiency include payments to employees based on individual business efficiency (amount of work done, quality of work done, inventiveness and innovations). 

 

Payments by results include additional payments to employees based on periodical and final accounts, 13th month pay, Christmas bonus and other payments regulated by a collective agreement or regulations of legal entity.

 

Compensations for annual leave, holidays and non-working days prescribed by law include compensations for annual leave, holidays and non-working days prescribed by law, paid to employees. This category also includes compensations for absence from work because of vocational training, retraining or additional training, for stoppage in work due to natural disasters, electricity cut-outs, machinery and equipment malfunction, lack of raw materials, strikes and other cases defined by law, collective agreement or general act.

Payments in kind include net costs of enterprise for products that were given as a gift to employees or a difference between the purchase price and the price at which the products were sold to employees as well as goods coupons.

 

Costs of housing for employees include costs of residential places owned by an enterprise (costs of maintenance and housing administration, costs for taxes and insurance related to such housing) and costs of building or purchasing residential buildings made by employees (difference between the bank interest rates and the ones approved to the employees by an employer).

 

Car costs include costs of private use of company cars by employees (costs of leasing, depreciation, insurance, maintenance, repair, parking, garaging, fuel and similar).

 

Other payments in kind include costs of repair, maintenance and depreciation of premises for cultural, sports and other leisure activities related to employees, babysitting costs of the employees’ children (costs of kindergartens and of child care at home), occasional gifts for the employees’ children, mobile phones costs, costs of vacation facilities, employer’s payments for union funds, scholarships according to agreements on schooling and similar. They exclude costs of wages, compensations and contributions for employees in own enterprise for services related to cultural, sports and other leisure activities, all forms of subsidies, clothing allowances, investments in facilities, premises, means of transport and equipment and monetary assistance from different funds.

 

Social contributions paid by employer include: indirect social contributions of employers (statutory social contributions and additional payments paid by employer for the purpose of social security of employees) and direct social contributions (compensations for sick-leave, for waiting on work at home, for permanent surplus of employees in a notice period, retirement costs and sympathy assistance payments).

 

Vocational training costs include costs of maintenance, repair and depreciation of buildings and installations used exclusively in training, costs for tools and instruments used for training, expenditures on participation in courses, seminars, conferences, business travels and fees of instructors from outside the enterprise paid by employer. These costs exclude wages, compensations  and contributions for in-house instructors as well as costs of investment in buildings and equipment used in training and cost of training paid by employees.

 

Other labour costs include recruitment costs of new employees and clothing allowances.

 

Subsidies include all types of subsidies paid by state or other enterprises, companies and organisations from Croatia or from abroad, purposed to subsidize a part or the total amount of labour costs. Subsidies reduce labour costs. Subsidies covering social security contributions and payments for social security/protection, vocational training costs and funds reimbursed by the Croatian Institute for Pension Insurance and the Croatian Institute for Health Insurance are excluded.

 

Hours actually worked include actually worked hours (effective hours of work) in full-time and in working time shorter or longer than full-time. It also includes hours in cases when employees were present at their working place and were paid, but did not work because of damages, cleaning the machines, preparation or cleaning of tools, momentary lack of work, breaks shorter than 30 minutes, writing reports.

 

Paid or unpaid hours when employees did not work or were not present at their working place (day breaks longer than 30 minutes, annual leave, paid leave, holidays and days not worked prescribed by law, sick-leave both shorter and longer then 42 days, vocational training, paid leave up to 7 days, transportation to and from work) are excluded.

 

Paid hours are hours of work for which employee received a wage and include hours actually worked in full time, shorter or longer than full-time as well as hours not actually worked but paid (annual leave, holidays and free working days, sick leave up to 42 days and other paid but not actually worked hours). Refunded hours (maternity leave, hours of parents who work part time, sick-leave longer than 42 days and other refunded hours) are excluded.

 

Average monthly labour cost per employee is calculated by dividing total labour cost with the number of employees who received wages.

 

Average monthly labour cost per hour actually worked is calculated by dividing total labour cost with the total number of hours actually worked.

 

Coeficient of variation (CV) is a relative measure (percentage) of estimation confidence and provides information on largeness of a confidence interval.

 

Abbreviations

 

NKD 2002.   National Classification of Activities, 2002 version

NN                 Narodne novine, official gazette of the Republic of Croatia

 

Symbols

 

-  no occurrence