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Statistical presentation

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Labour and Income, Social Statistics
Bao Chau Do and Sam Blanch
+45 39 17 32 74 and +45 39 17 31 25

bcd@dst.dk and slb@dst.dk

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Structure of Earnings

The statistics include all establishments in the general government sector. As for the sector corporations and organizations all enterprises are included with an employment corresponding to ten or more full-time employees, with the exception of the industry agriculture, forestry and fishing. The statistics are not immediately suitable for shedding light on wage developments, as the change between two years, in addition to wage increases, reflects changes in employee composition such as the arrival and departure of employees within given groupings.

Data description

The purpose of the annual Statistics of Earnings is to provide information on wage levels and the composition of wages on various wage components across sectors in the Danish labor market. The statistics are not immediately suitable for shedding light on wage developments, as the change between two years, in addition to wage increases, reflects changes in employee composition such as the arrival and departure of employees within given groupings.

The Statistics of Earnings cover the entire Danish labour market and apply a uniform conceptual framework across sectors. The statistics include all establishments in the general government sector. As for the sector corporations and organizations all enterprises are included with an employment corresponding to ten or more full-time employees, with the exception of the industry agriculture, forestry and fishing.

The structure of earnings statistics constitute an aggregation of earnings statistics for the private sector, earnings statistics for the general government and earnings statistics for the local governments. The statistics were published in their present form for the first time in 2010. Figures are accessible via Statistics Denmark's database StatBank Denmark from 2009. In 2013 the sectoral division used in National Accounts was implemented, and therefore the sectors are termed "corporations and organizations", "central government", "regional government" and "municipal government" from 2013 and onwards.

Classification system

Sector coverage

The statistics covers all the sectors in the Statistics Denmark’s Statistical Business Register ESR sectors that Danish registered companies can be assigned (i.e. all sectors excluding rest of the world and foreign-controlled entities).

Statistical concepts and definitions

Earnings per Hour Worked: Earnings per hour worked is earnings related to the number of hours worked. Earnings per hour worked indicate the employer's wage cost per hour in employing a given employee. Earnings comprise each employee's total earnings in connection with his/her job, including the employee's as well as the employer's share of any contributions to pension schemes and income in the form of fringe benefits subject to taxation. The number of hours worked is the number of hours actually performed by an employee, including overtime hours worked, but exclusive of hours off in connection with public holidays and hours of absence due to sickness, maternity, etc.

Basic Earnings per Hour Worked: Basic earnings, such as basic, qualification and functional earnings, etc. as well as holiday and public holiday allowances, special holiday allowance, gross allowances and optional scheme.

Holiday Payments per Hour Worked: Holiday payments include payments for holidays and public holidays, as well as the special holiday allowance for fixed salary-earners.

Special Holiday Allowance per Hour Worked: Special holiday allowance (only for fixed salary-earners).

Overtime Payment per Hour Worked: Overtime payment, overtime bonus and not the total overtime payment

Sickness with Pay per Hour Worked: Sickness with pay etc., earnings and other payments in connection with absence, including payments for days off due to sickness, holidays, special holidays, care, etc.

Nuisance Bonuses per Hour Worked: Nuisance bonuses, e.g. special payments for shift-work or work at odd hours and extra payment due to work related nuisances of various kinds.

Fringe Benefits per Hour Worked: Fringe benefits, only include fringe benefits, which are included in A-income, i.e. the value of free cars, telephones, internet, board and lodging free of charge.

Irregular Payments per Hour Worked: Irregular payments, e.g. bonus payments, payments for surpluses readjustments of earnings, etc.

Pension Including ATP per Hour Worked: Pension contributions - both employee's and employer's contributions, including ATP (The Danish Labour Market Supplementary Pension Fund).

Standardized Hourly Earnings: Standardized hourly earnings are standardized earnings related to standard hours. The standardized hourly earnings are the concept of earnings that is the closest concept with regard to the wages and salaries that have been "agreed" between employee and employer. The concept indicates the amount that an employee has received per hour worked, irrespective of the number of days in which the employee has been absent due to sickness or has worked hours in addition to the working time agreed. Consequently, the standardized earnings are earnings less payments for overtime hours and absence.

Basic Earnings per Standard Hour: Basic earnings, such as basic, qualification and functional earnings, etc. as well as holiday and public holiday allowances, special holiday allowance, gross allowances and optional scheme.

Holiday Payments per Standard Hour: Holiday payments include payments for holidays and public holidays, as well as the special holiday allowance for fixed salary-earners.

Special Holiday Allowance per Standard Hour: Special holiday allowance (only for fixed salary-earners).

Nuisance Bonuses per Standard Hour: Nuisance bonuses per standard hour

Fringe Benefits per Standard Hour: Fringe benefits, only include fringe benefits, which are included in A-income, i.e. the value of free cars, telephones, internet, board and lodging free of charge.

Irregular Payments per Standard Hour: Irregular payments, e.g. bonus payments, payments for surpluses readjustments of earnings, etc.

Pension Including ATP per Standard Hour: Pension contributions - both employee's and employer's contributions, including ATP (The Danish Labour Market Supplementary Pension Fund).

Standardized Monthly Earnings: Standardized monthly earnings are derived from the standardized hourly earnings by calculating monthly earnings based on a 37-hour workweek. Standardized monthly earnings are calculated by multiplying the standardized hourly earnings by 160,33. Each standardized earnings component can be calculated accordingly, and can be deducted from the standardized monthly earnings if fewer components are desired.

Number of fulltime employees in the earnings statistics: The number of fulltime employees in the earnings statistics is calculated on the basis of a 37-hour workweek, hence 1924 working hours per year. Thus, the number of fulltime employees does not show the number of employees or employments, but is a summarization of what the employments account for in terms of fulltime employment within a given year. The number of fulltime employees only indicates the number of fulltime employees that are included in the earnings statistics. Therefore, the number of fulltime employees is NOT useful as an employment indicator.

Statistical unit

The counting unit is the individual employment relationship in a public or private enterprise or organization. An individual employment relationship is defined as a person's affiliation with the same establishment with the same terms of employment. The individual job is defined as a person employed with a specific employer and engaged in a specific occupation. A new job is established where there are any changes in an employee's employer, workplace, occupation or other personal characteristics. Consequently, an employee can be included with several observations in the statistics.

Statistical population

The statistics include employees in the entire labour market. The statistics cover all enterprises and organizations in General government. In Corporations and organizations , all enterprises and organizations employing 10 or more full-time employees are included in the statistics, except for enterprises in the industry group Agriculture and fishing. Also some employment relationships are not included in the structure of earnings statistics, including employment relationships of very short duration, very few weekly hours, special staff categories, or where it is not possible to determine the number of possible working hours.

Reference area

The statistics cover the entire geographical Denmark, excluding Greenland, the Faroe Islands and foreign enterprises or organizations on Danish territory.

Time coverage

The current series cover the years from 2013-.

Base period

Not relevant for these statistics.

Unit of measure

The unit of measure is earnings per worked hour and earnings per standard hour.

Reference period

01-01-2021 - 31-12-2021

Frequency of dissemination

The statistic is published annually.

Legal acts and other agreements

The information is collected in accordance with the Act on Statistics Denmark, as amended by Act no. 610 of May 30, 2018.

The collected information forms the basis for EU's Structure of Earnings Survey (SES) and EU's Labour Cost Survey (LCS). Both surveys are conducted every fourth year. The Structure of Earnings Survey was conducted for the first time for the year 2002 and the Labour Cost Survey for the first time for the year 2000. The legal basis of these two surveys is Council Regulation (EC) No. 530/1999 Statistics on Wages and Labour Cost Structures. To this is added that annual updating of the surveys are submitted in accordance with the so-called gentlemen's agreement.

Cost and burden

The design of the survey implies that great emphasis is widely attached to making use of existing administrative data stored by the business enterprises in their own wage systems.

The private sector: The system for data collection is designed to explore the potentials of the latest computer technology for efficient and rational reporting of data. In this respect, a Standard for Electronic Statistical Reporting has been developed, which is used by wage agencies and respondents utilising standard systems and by business enterprises, which have developed their own wage system. Most respondents make use of an electronic system for reporting data. The administrative response burden for reporting data to the earnings statistics in the private sector amounted to DKK 5.33 million in 2010.

Comment

Further information about structure of earnings is available on the statistics subject page.

Bao Chau Do, tlf. +45 39 17 32 74, e-mail: bcd@dst.dk and Sam Blanch, tlf. +45 39 17 31 25, e-mail: slb@dst.dk.