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Indicators on labour market. Wages/Earnings.
I.Methodological statement
Average wages
Average price of services provided by labour force of production units is measured by average wage of employees. Wages refers to gross remuneration (i.e., before the deduction of taxes and other withholdings in accordance with the legislation) accrued in cash by an employer for worked time.
Average monthly wage includes the following payments in cash or in kind:
-wage of daily hired workers for time worked and for time not worked;
-annual and one-time incentive payments; wage of hired workers and payments for time not worked;
-payment for overtime working, night work, multiple shifts and holidays;
-supplementary payments for continuously record of service and speciality;
-supplementary payments for working in mountainous place and heavy climate conditions according to the regional regulations;
-supplementary payments for working in disadvantageous, heavy and harmful conditions.
In-kind payments in the form of goods (work, services) are recorded at the value of these goods (work, services), based on the market prices (rates) as of the accrual date, and in the event of state regulation of prices (rates) for these goods (work, services), based on the state-regulated retail prices.
Wage index
Price of the services provided by labour force during a month represents monthly wage and compensation index, and it is equal to income received from wage and compensation in cash and in kind according to enterprise, activity type, property type, economic region and country, and its quantity is equal to time worked per month.
The employers transfer 22 per cent of the calculated wage fund to the State Social Fund for social protection and provision of pension for the employees. At the same time 3 per cent of the employees' wage is tranfered to this fund.
Classification
Type of economic activity - is determined in accordance with the national classification of economic activities (NACE), compiled in accordance with the International Standard Industrial Classification.
Occupation - is determined in accordance with The National Occupational Classification, compiled in accordance with the International Standard Occupational Classification (ISCO-88).
Distribution of population by status in employment is determined in accordance with the International Standard Occupational Classification.
Education - is determined in accordance with Azerbaijan National Classification of Education, compiled in accordance with the International Standard Classification of Education (ISCED 97).
II. Scope of the data
* Industrial coverage. Activity groups of statistical units for which employment is estimated are included.
* Occupational coverage is realized according to National Occupationional Classification.
* Geographical coverage. All of the country's economic regions are covered with exception of occupied territories.
* Population coverage. Persons aged 15 years and over permanently residing in the country and hired workers, including persons temporary living abroad for 6 months.
Not covered:
- persons living abroad for more than 6 months;
- persons in actual military service;
- persons received medical treatment in hospitals for six months and over;
- institutionalized offenders.
* Topical coverage. Employment, underemployment, hours of work, duration of employment, persons not engaged in labour activity, temporary workers, status in employment, sex of worker, education and qualification levels, second job.
III. Accounting Conventions
* Reference period. Monthly for large enterprises, quarterly for small enterprises.
* Type of prices.
- employment - during a month;
- total amount of wages paid to employees;
- employment principles - full time;
- overtime pay - mainly in the field of industry.
IV. Nature of the Basic Data Sources
* Weight source. Statistical reports submitted by enterprises and organizations, sample fields surveys.
* Period of index current weight. A quarter.
* Selection of departments, enterprises. Enterprises have register which is actualized twice in a year.
* Data collection:
- collection of statistical reports from enterprises and organizations;
- on reporting month the large enterprises submit reports before 15-th day of the next month, the small enterprises on reporting quarter - before 18-th day of the next month after the reporting quarter;
- on large enterprises - 13 days (28-th day after the reporting period), small enterprises - 13 days (28-th day after the reporting period);
- organizations continuously engaged in statistical observations - are local statistical authorities, if necessary the additional personnel could be hired.
V. Compilation Practices
* Calculation of simple index. Wage index of employees engaged in enterprise (organization) or economy field is characterized by average quantity ratio and is defined by dividing of amount of wage fund on enterprise or economy into employees' average number. The received indices reflect average weight price index of the service provided by labour force.
* Agregation formula. Laspeyres formula.
* Agregation formula. By types of activity.
* Coordination of value weight and reference period (index indicator). Such corrections are not made.
* Coordination of last years' indices with updated weight indices. It is not applied.
* Calculation period. Previous year or period of the previous year.
VI. Other Aspects
* Revision policy. Quarterly data on wage is the last version and are not revised.
VII. Quality
Documentation of methodology:
In publications issued by the State Statistical Committee data on employment are observed by methodological statements, concepts and explanations. Short methodological explanations on indicators are presented in the yearbook "Labour Market". The used methodology is based on International Labour Organization recommendations.
Data to Support Cross-checks and Assurance of Reasonableness: Detailed information on employment statistics is presented in the yearbook "Labour Market". Data on types of activity, sex, age groups and property are reflected in this yearbook.
VIII. Plans for Improvement
Recent Improvements:
1. The sample statistical survey on "Expenditures spent for labour force by employers" had been conducted in enterprises and organizations on September 2006.
2. The sample statistical survey on "Average monthly wage of employees by occupation and post worked full time on October" had been conducted in enterprises and organizations on November 2006.
3. The sample statistical survey "On average monthly wage of employees by occupation and post
worked full time on October" had been conducted in enterprises and organizations on
November 2007.
4. The sample statistical survey "On average monthly wage of employees by occupation and
post worked full time on October" had been conducted in enterprises and organizations on
November 2008.
5. The sample statistical survey " On studying of wages and salaries structure" had been
conducted in enterprises and organizations on March-April, 2008.
6. The sample statistical survey " On working time" had been conducted in enterprises and
organizations on May-June, 2009.
7. The sample statistical survey "On average monthly wage of employees by occupation and
post worked full time on October" had been conducted in enterprises and organizations on
November 2009.
Short-Term Plans:
8. The sample statistical survey on "Average monthly wage of employees by occupation and post
worked full time on October" is considered to be conducted in enterprises and organizations
on November 2010.
Medium-Term Plans:
9. It is considered to conduct the statistical survey on "On indicators of working time combine with ILO criterion".
Technical Assistance/Financial Needs/Other Prerequisites:
Short-Term:
The above-mentioned activity will be realized by the State Statistical Committee's own forces.
Medium-Term:
The above-mentioned activity will be realized by the State Statistical Committee's own forces.
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