Private sector hourly wages: documentation of statistics
The documentation of the statistics describes how the statistics were compiled and what methods were used in the compilation. The data help interpret the figures of the statistics and evaluate their reliability and comparability. The quality report is based on the EU's SIMS model. The documentation also contains change releases describing changes in the statistics and possible specifying methodological descriptions.
If you are looking for statistical figures for these statistics, go to the statistics page: Private sector hourly wages
Quality report
Data description (SIMS 3.1)
The statistics have been discontinued. Statistics on private sector hourly wages describe the numbers and earnings levels of hourly paid employees by gender, age, occupational group and education. The data are collected from several different sources and supplemented with Statistics Finland's inquiry. The data are published once a year.
Sector coverage (SIMS 3.3)
The statistics on private sector hourly wages describe the private sector’s hourly paid employees. The data contained in the statistics are based on the data provided by employer organisations, which are supplemented with a sample survey conducted among enterprises that are not members of employer organisations.
Statistics Finland also collects wage data from the member organisations of Avainta and the Federation of Agricultural Employers.
Statistical unit (SIMS 3.5)
An employee/a person
Each person has their own personal identification number that can be used to combine their data with other personal data.
Statistical population (SIMS 3.6)
Private sector employee working in an enterprise of at least five employees and paid on an hourly basis
Reference area (SIMS 3.7)
The data are described at national level (with the exception of the Region of Åland).
Time coverage (SIMS 3.8)
The data are published once a year and primarily concern hourly wages from October to December of the statistical year.
Base period (SIMS 3.9)
The statistics on private sector hourly wages are published as separate statistics each year. The statistics for each year only describe the statistical year in question, and comparability with previous years cannot be fully guaranteed. Thus, the base period is not relevant in the statistics.
Unit of measure (SIMS 4)
The earnings are given in the statistics on private sector hourly wages as EUR per month.
Reference period (SIMS 5)
The reference period for the statistics on private sector hourly wages covers the statistical year from October to December.
Concepts and definitions (SIMS 3.4)
Bonuses and allowances not paid in each pay period
Bonuses and allowances not paid in each pay period are such as performance-based bonuses, holiday bonus and holiday supplement and seniority increments paid in some hourly paid fields. Payment of one-off pay components can also be based on collectively bargained agreements. Index of wage and salary earnings: The index of wage and salary earnings measures the development of earnings from regular working hours regardless of the mode of payment. Components paid on the basis of performance are included in the earnings concept so that they are divided evenly over the whole calendar year. Similarly, bonuses and allowances not paid in each pay period based on collective agreements are evenly divided for the whole year. All these components belonging to the concept of index of wage and salary earnings, such as holiday bonuses are not included in data on wages and salaries used in the calculation of the index, but they are taken into consideration in index calculation only in case changes in their relative share are agreed in collective bargaining. In the index of wage and salary earnings contractual pay increases paid retrospectively are also taken to the quarter when they were earned. Labour cost survey: In the concepts of the labour cost survey compensations for termination of an employment relationship belonging to bonuses and allowances not paid in each pay period are included in social costs. Labour cost index: In the labour cost index bonuses and allowances not paid in each pay period also include contractual pay increases paid retrospectively from previous pay periods. The labour cost index also contains incentive stock options according to their exercise value. ------ Bonuses and allowances not paid in each pay period are not published in the statistics on private sector and local government wages and salaries. These components are not included in the index of regular earnings.
Collective agreement sector
Collective agreement sector is determined in the collective labour agreement applied in the employment relationship concerned. In the municipal sector the collective agreement sectors are specified in the main contract between the Commission for Local Authority Employers and employee organisations. A collective labour agreement is an agreement between an employee organisation and an employer or an employer organisation on the sector-specific terms of employment. Among others, the pay, working hours, vacations and other benefits that apply within the scope of the agreement are agreed on in the collective agreement. The agreements are often sector specific, but are also bound by the occupational status of the wage or salary earner concerned and are concluded for a fixed period.
Earnings for regular hours worked
Earnings for regular hours worked describe the wages paid for regular working hours. See Regular weekly working hours. Earnings for regular hours worked for each pay period include - basic pay - supplements based on duties, professional skill, years of service, etc. - supplements based on location and conditions of workplace - premium pay - performance-based pay components - taxation value for fringe benefits - pay for working hours not worked. Earnings for regular hours worked do not include earnings for extra or overtime work or one-off pay items, such as holiday bonus and performance-based bonuses. Cf. Total earnings.
Employee
A wage and salary earner (employee) is a person, who has an employment relationship with an employer and who is compensated for work performed. Wage and salary earners are either salaried employees or workers of the employer. In statistics on wages and salaries, wage and salary earners are as a rule not divided into salaried employees and workers. A division can, however, be made according to profession or pay system. In statistics on wages and salaries, entrepreneurs paying their own salaries are not classified as wage and salary earners, as their earnings usually differ too much from the earnings of other similar wage and salary earners. In these statistics a single wage and salary earner may have several employment relationships that are, however, all treated as separate instances of wage and salary earner in the statistics. Self-employed persons who pay even part of their earnings as salary to themselves are recorded as wage and salary earners in the labour cost statistics.
Employer sector
Employer sector describes the structure of the labour market and is determined by the decision-making unit. The classification of employer sectors used in statistics on wages and salaries and in statistics on labour costs is a national adaptation of the Classification of Sectors that is used in economic and social statistics (Classification of Sectors 2000). The classification used in statistics on wages and salaries has the following structure: Local government sector Operating units of municipalities and joint municipal boards, and municipal enterprises Central government sector Agencies and institution financed from the State budget Private sector Private enterprises, enterprises with central or local government majority holding and state enterprises. Non-profit corporations, parishes, and organisations and foundations are also included in the private sector in statistics on wages and salaries. The structure of the classification of sectors used in statistics on labour costs and in the labour cost index is similar to that of the classification used in statistics on wages and salaries. In the index of wage and salary earnings, non-profit corporations, parishes and organisations form a separate employer sector of their own (Others).
Full-time
Statistics on private sector wages and salaries: For private sector monthly wage earners, the definition of full-time employment is based on weekly working hours, as in the structural statistics of wages and salaries. In these statistics, wage and salary earners whose regular weekly working hours exceed 90 per cent of the general working time in the industry are defined as working full-time. Information on other wage and salary earners' full-time employment is obtained through inquiries or defined according to the employment relationship. If a wage and salary earner's regular weekly working hours are not known, also information on earnings is used to define full-time employment. The distinction between full-time and part-time employment is not made separately for private sector hourly wage earners. Statistics on public sector wages and salaries: For wage and salary earners in the public sector, full-time and part-time employment is defined on the basis of the character and conditions of the employment relationship. Information on full-time and part-time employment is usually obtained through inquiries. Labour cost survey: In statistics on labour cost, an employee whose working hours are specified in the collective agreement for government employees or the collective agreement, or the regular working time of the unit in question, is defined as working full-time. Cf. Part-time
Hourly wage earner
The earnings of an hourly wage earner are mainly based on the hours actually worked. In addition, an hourly wage earner may have earnings for working time not worked. Compensation for work can be paid several times a month. The pay system of employment relationships based on contract pay often includes the basic part of hourly pay and those with contract pay are defined as hourly wage earners in the statistics.
Hours worked
Statistics on wages and salaries: In statistics on wages and salaries, statistics on earnings in the industries which pay hourly wages are compiled for hours actually worked. Hours actually worked refers to the working time an employee has spent on his/her actual duties. Hours actually worked include time and piece rate work and contract work hours as well as Sunday and overtime hours. Working hours are based on the Working Hours Act. Labour cost survey: Hours actually worked refer to the working time an employee has spent on his/her actual duties. They also include Sunday and overtime work. Hours actually worked include time spent in training, but not unpaid overtime. In labour cost statistics, hours actually worked can be defined also as paid hours minus paid leave.
Occupation
In statistics on wages and salaries, descriptions of occupations of wage or salary earners are based on field-specific titles of occupations, posts and tasks, and on the Classification of Occupations of Statistics Finland (Classification of Occupations 2001). The approximate number of the used field-specific occupational titles is 15,000. In respect of the private sector the occupational titles used in statistics on wages and salaries derive from the nomenclature of occupations and tasks of the fields covered by the collective labour agreements of the Confederation of Finnish Industries EK, the nomenclature of tasks of Kirkon työmarkkinalaitos (labour market organisation of the Church) and the nomenclature of occupations of Näyttämöväen Vanhuudenturvasäätiö (foundation for pension security of stage and screen employees). The titles of occupations and tasks in the local government sector are based on the Local Government Pensions Institution's classification of occupations. The titles of occupations and tasks in the central government sector comply with the titles of occupations or tasks of letters of appointment or collective labour agreements. The occupations in statistics on wages and salaries are classified basing on these nomenclatures of occupational titles by taking into consideration the employer sector, educational qualification and industry of the wage and salary earner. Field-specific titles of occupations or tasks are not published in statistics on wage and salary structures, where only the classification of occupations is used in describing occupations.
Part-time
Statistics on private sector wages and salaries: For private sector monthly wage and salary earners, the definition of part-time employment is generally based on weekly working hours, as in the structural statistics of wages and salaries. In these statistics, wage and salary earners whose regular weekly working hours are over 10 per cent shorter than the general working time in the industry are defined as working part-time. Information on other wage and salary earners' part-time employment is obtained through inquiries or defined according to the employment relationship. If a wage and salary earner's regular weekly working hours are not known, also information on earnings is used to define part-time employment. The division between full-time and part-time employment is not made separately for private sector hourly wage earners. Statistics on public sector wages and salaries: For public sector wage and salary earners, full-time and part-time employment is defined on the basis of the character and conditions of the employment relationship. Information on full-time and part-time employment is usually obtained through inquiries. Labour cost survey: In statistics on labour cost, an employee whose working hours are shorter than the working hours specified in the collective agreement for government employees or the collective agreement, or the general working time of the unit in question, is defined as working part-time. Cf. Full-time
Regular weekly working hours
Regular weekly working hours are based on the Working Hours Act and collective agreements, and they are often in line with a specific working time system or working time mode. Sometimes regular weekly working hours can be agreed on separately and they may differ from the general working time of the industry. Earnings for regular hours worked are based on regular weekly working hours. See Earnings for regular hours worked. Cf. Total working hours.
Total earnings
Total earnings describe the wages and salaries paid for regular working hours and other working hours, such as overtime and extra work. See Total working hours. Total earnings for each pay period include - basic pay - supplements based on duties, professional skill, years of service, etc. - supplements based on location and conditions of workplace - premium pay - performance-based pay components - taxation value for fringe benefits - earnings for extra and overtime work - compensation for on-call or urgent work - other irregularly paid supplements - pay for working hours not worked. Total earnings do not include one-off pay items, such as holiday and performance-based bonuses. Cf. Earnings for regular hours worked.
Type of contractual employment relationship
Type of contractual employment relationship describes the legal relationship between an employee and employer. In statistics on wages and salaries contractual employment relationships are referred to as either permanent /valid indefinitely or fixed-term. A contractual employment relationship may also concern specific employee categories such as trainees, trainees on apprenticeship contracts, persons with disabilities and those employed with employment promotion subsidies. The data is usually directly obtained from inquiries for statistics on wages and salaries. In statistics on the structure of earnings, data on persons employed with employment promotion subsidies are supplemented by data obtained from the register of job seekers of the Ministry of Employment and the Economy. Employment relationship is the corresponding concept referred to in the statistics on wages and salaries in the municipal sector and the corresponding statistics of the government. Cf. atypical employment in the Labour Force Survey (fixed-term and/or part-time).
Institutional mandate (SIMS 6)
The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the General Data Protection Regulation, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.
Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.
Further information: Statistical legislation
Legal acts and other agreements (SIMS 6.1)
The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.
Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.
Data sharing (SIMS 6.2)
The statistics are based on the wage data on hourly paid wage earners collected by the Confederation of Finnish Industries from its member enterprises. Statistics Finland and the Confederation of Finnish Industries have set out the procedures for information sharing in an agreement on statistical cooperation.
Source data (SIMS 18.1)
Private sector wage data are collected by the Confederation of Finnish Industries from its own member organisations, and the following organisations also provide data for the statistics: Employers’ Federation of Road Transport, Finnish Central Organisation for Motor Trades and Repairs, Avainta, Commission for Church Employers, and Theatre Info Finland.
Statistics Finland supplements the data by means of sample surveys conducted among employers that are not members of employer organisations. As a rule, the inquiry applies to all employees who are employed by the enterprises included in the sample. Data on salary earners paid monthly are collected on a monthly basis.
Frequency of data collection (SIMS 18.2)
The data on private sector hourly wages are collected each year.
Data collection (SIMS 18.3)
Wage data for the statistics on private sector hourly wages are collected from enterprises that are not members of employer organisations. To construct a research frame, active enterprises with at least five wage earners on their payroll (including unincorporated enterprises and parishes) are drawn from the service database of the Business Register.
In accordance with the Classification of Sectors, the following actors are excluded from the survey frame: central government, local government, municipalities, joint municipal authorities, international organisations, households and enterprises located in the Region of Åland. The survey frame is used as a basis for a sampling frame, for which all enterprises that are not members of employer organisations and operating in the sample industries are selected.
The sampling design is a stratified cluster sampling. Simple random sampling without replacement is used as the sampling method. An enterprise is used as the sampling unit, while the industry and size category of the enterprise (as measured with the number of employees) are used as the stratification criterion. Sampling probability depends on the size category and industry.
The wage data collected using the sample and the wage data obtained from employer organisations are inflated to the level of the survey frame by using the Särndal variance estimator in which the number of wage earners in the Business Register is used as the external additional variable.
Estimation of the parameters is carried out separately for the wage data of the enterprises included in the sample and enterprises that are members of employer organisations. Membership is determined in accordance with the statistical period.
The figures for enterprises that are members of employer organisations are based on the data collected by employer organisations from their members. Sharing of information with employer organisations is based on separate information sharing agreements.
Data validation (SIMS 18.4)
Data on organisations contained in the statistics on private sector hourly wages are already validated before they are obtained by Statistics Finland. The data are also checked after they have been received by Statistics Finland. The data contained in the sample collected from enterprises that are not members of employer organisations are validated continuously during the data collection process and the data are also reviewed after all source data have been merged.
Data compilation (SIMS 18.5)
Data contained in the Statistics Finland sample have been checked using verification software, which lists errors at unit level. Erroneous observations are removed from the statistics. A small number of imputations have been carried out. The data are also checked for outliers using IQR and z-score methods.
The wage data collected using the sample and the wage data obtained from employer organisations are inflated to the level of the survey frame by using the Särndal variance estimator in which the number of wage earners in the Business Register is used as the external additional variable.
Estimation of the parameters is carried out separately for the wage data of the enterprises included in the sample and enterprises that are members of employer organisations. Membership is determined in accordance with the statistical period. As the research frame is selected before the statistical period, enterprises entered as non-members of employer organisations in the original frame whose wage data are included in the data collected by employer organisations are post-stratified in the frame of enterprises that are members of employer organisations.
Overall accuracy (SIMS 13.1)
Surveys carried out among enterprises are used as the source data for the statistics on private sector hourly wages. Enterprises report data on their employees’ employment and earnings data. Thus, the accuracy of the statistics depends on the quality of their source data.
Source data are verified and validated, and they are generally reliable. Occasionally, when earnings of a small number of employees are examined, the statistical data are less reliable because, for example, due to the sample design of the source data, the selection of an enterprise as a respondent enterprise may affect the average earnings data of the population under review.
Quality assurance (SIMS 11.1)
Quality management requires comprehensive guidance of activities. The European Statistics Code of Practice forms the basis for the common quality system of the European Statistical System.
The Code of Practice is based on 16 principles that concern statistical authorities' independence, accountability and the quality of the processes and data to be published.
The principles are in line with the Fundamental Principles of Official Statistics approved by the United Nations Statistics Commission and are supplementary to them. The quality criteria of Official Statistics of Finland are compatible with the European Statistics Code of Practice.
Further information: European Statistics Code of Practice | Statistics Finland and Recommendations of the Advisory Board of Official Statistics of Finland | Statistics Finland
Quality assessment (SIMS 11.2)
The quality of the statistics on private sector hourly wages is monitored at different stages of the production process.
Data revision - policy (SIMS 17.1)
Revisions – i.e. improvements in the accuracy of statistical data already published – are a normal feature of statistical production and result in improved quality of statistics. The principle is that statistical data are based on the best available data and information concerning the statistical phenomenon. On the other hand, the revisions are communicated as transparently as possible in advance. Advance communication ensures that the users can prepare for the data revisions.
The reason why data in statistical releases become revised is often caused by the data becoming supplemented. Then the new, revised statistical figure is based on a wider information basis and describes the phenomenon more accurately than before.
Revisions of statistical data may also be caused by the calculation method used, such as annual benchmarking or updating of weight structures. Changes of base years and used classifications may also cause revisions to data.
Timeliness (SIMS 14.1)
The previous year’s data for the period between October and December are published in August of the following year (i.e. eight months after the end of the reference period).
Punctuality (SIMS 14.2)
The data are delivered punctually at agreed times in accordance with Statistics Finland’s release calendar.
Comparability - geographical (SIMS 15.1)
The statistics on private sector hourly wages for enterprises that are not members of employer organisations are based on a sample that has not been standardised at regional or municipal level. There may therefore be inaccuracies between regions, and the statistics are not fully comparable at municipal and regional level.
Comparability - over time (SIMS 15.2)
The data are cross-sectional and thus the figures contained in them are not comparable with earlier years.
Coherence – cross domain (SIMS 15.3)
The statistics on private sector hourly wages are part of the Structure of Earnings statistics, which also include statistics on monthly and hourly salaries in the local government sector and statistics on monthly salaries in central government. In Structure of Earnings statistics, all sectors are made mutually commensurable by means of statistical measures.
Release calendar (SIMS 8.1)
Statistics Finland publishes new statistical data at 8 am on weekdays in its web service. The release times of statistics are given in advance in the release calendar available in the web service. The data become public after they have been updated in the web service.
Further information: Publication principles for statistics at Statistics Finland
User access (SIMS 8.3)
The data are released to all users at the same time. Statistical data may be processed at Statistics Finland and information on them may be given before release only by persons involved in the production of the statistics concerned or who need the data of the statistics concerned in their own work before the data are published.
Further information: Publication principles for statistics
Unless otherwise specifically stated in connection with the product, data or service concerned, Statistics Finland is the producer and copyright owner of the data. The terms of use for statistical data.
Frequency of dissemination (SIMS 9)
The previous year’s data for the period between October and December are published in August of the following year (i.e. eight months after the end of the reference period).
News release (SIMS 10.1)
The release is published annually on the home page of the statistics.
Online database (SIMS 10.3)
The database tables of the statistics can be found in the StatFin database.
Confidentiality - policy (SIMS 7.1)
The data protection of data collected for statistical purposes is guaranteed. The compilation of statistics is guided by the Statistics Act. Alongside the Statistics Act, the EU’s General Data Protection Regulation and the Finnish Data Protection Act are applied to the processing of personal data. Provisions on the confidentiality of data collected for statistical purposes are laid down in the Act on the Openness of Government Activities.
The data are processed only by persons who need the data in their work. The use of data is restricted by usage rights. All persons employed by Statistics Finland have signed a pledge of secrecy, where they have obliged to keep secret the data prescribed as confidential by virtue of the Statistics Act or the Act on the Openness of Government Activities.
Further information: Data protection | Statistics Finland (stat.fi)
Confidentiality - data treatment (SIMS 7.2)
For reasons of data protection and reliability, data are not published or distributed in the statistics on private sector hourly wages if: the data are based on data on fewer than 30 employees or fewer than three enterprises, or if one enterprise covers 80 per cent of all data observations