25.9.2024 valid documentation

Basic data of the statistics

Data description

The statistics on local government sector wages and salaries describe the numbers and earnings level of wage and salary earners working in the local government sector by such variables as occupation, education, gender and age.

Statistical population

Wage and salary earners earning a monthly pay and those earning an hourly pay in the local government sector.

Statistical unit

A wage and salary earner/a person. Each person has their own personal identification number that can be used to combine their data with other personal data.

Unit of measure

Earnings are indicated in euros and cents.

Reference period

The reference period for the statistics is October of the statistical year.

The Statistics Act obliges Statistics Finland to treat the data as confidential and use them only for statistical purposes. Data will be provided for Local Government and County Employers KT based on section 9 of the act 254/1993. Statistics Finland can also authorise municipalities, joint municipal authorities and organisations to use data based on the Statistics Act (280/2004).

Reference area

All municipalities and joint municipal authorities.

Sector coverage

The statistics on local government sector wages and salaries are a complete dataset, covering all municipalities and joint municipal authorities.

Time coverage

Data are published once a year in April/May, with data on wages and salaries concerning October in the previous year. Due to incomplete data, the release time of the statistics for 2022 is in November 2023.

Frequency of dissemination

The data in the statistics on local government sector wages and salaries are published annually on Statistics Finland’s website. The release of the statistical year is published approximately six months after the end of the reference period.

Concepts

Basic pay

Basic pay describes task-specific minimum pay, taking into consideration any related additional responsibilities, cost-of-living category of the location of workplace or possible deductions for lack of qualifications. Basic pay does not include personal bonuses, increments for years of service or similar pay components. Basic pay is determined by the tasks of a position holder or employee and the conditions of collective labour agreements. Basic pay is often determined by the degree of competence required of the position holder or employee.

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.

Structural statistics on wages and salaries:
Holiday supplement paid for days off not taken is not included in these bonuscomponents in the structural statistics on wages and salaries.

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.
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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.

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

Structural statistics on wages and salaries:
In structural statistics on wages and salaries, the division into full-time and part-time employment is based on regular weekly working hours. In these statistics, employment relationships with regular weekly working hours exceeding 90 per cent of the general working time in the industry are defined as full-time. It has not been possible to define employment as full-time or part-time for wage earners whose regular working hours are not known. This may be due to non-reporting or irregular working hours of the person in question. For public sector teachers, full-time and part-time employment has been defined on the basis of the conditions of the employment relationship. In the structural statistics on wages and salaries, private sector teachers whose weekly teaching duty is at least 16 hours are defined as working 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 hours worked and hours not worked can be paid several times a month. An hourly wage earner is usually a worker. The pay system is determined by the collective labour agreement.

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.

Monthly wage earner

Monthly wage earners are remunerated for work performed on a monthly basis. Earnings are usually based on one month's working time and tend to stay the same from month to month. Monthly wage earners are normally salaried employees. The pay system is determined in the collective agreement.

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

Structural statistics on wages and salaries:

In structural statistics on wages and salaries, the division into full-time and part-time employment is based on regular weekly working hours. In these statistics, employment relationships with regular weekly working hours that are more than 10 per cent shorter than the general working time in the industry are defined as part-time. It has not been possible to define employment as full-time or part-time for wage and salary earners whose regular weekly working hours are not known. This may be due to either non-reporting or irregular working hours of the person in question. For public sector teachers, full-time and part-time employment has been defined on the basis of the conditions of the employment relationship. In the structural statistics on wages and salaries, private sector teachers whose weekly teaching duty is less than 16 hours are defined as working 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 wages

Regular wages 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 for salaried employees, workers' performance-based earnings
- taxation value for fringe benefits
- (in structural statistics on wages and salaries also pay for working hours not worked).

Regular wages do not include one-off items, such as holiday and performance bonuses. The concept of regular wages including performance-based bonuses is, however, also used in statistics on wages and salaries.

Regular wages are used in all statistics on wages and salaries, but the content may vary according to the statistics. In statistics on hourly wages, for example, regular wages include wages for time and piece rate work and contract work for the regular working time as well as the basic component of Sunday and overtime pay, but not the premia.

Cf. Total earnings

Total earnings

Total earnings describe the wages paid for regular working hours and other working hours, such as overtime or extra work. Cf. 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 for salaried employees, wage earners' performance-based earnings
- taxation value for fringe benefits
- earnings for extra and overtime work
- in part also eventual compensation for on-call or urgent work
- other irregularly paid supplements
- (in structural statistics on wages and salaries also pay for working hours not worked).

Total earnings do not include one-off items, such as holiday and performance-based bonuses.

In statistics on wages and salaries, the concept of total earnings including performance bonuses is also used.

The concept of total earnings is used in all statistics on wages and salaries, but its content may vary according to the statistics. In statistics on private sector hourly wages and salaries, for example, total earnings include earnings from regular working hours as well as Sunday and overtime pay premia.

Cf. Regular wages

Type of employment relationship

Type of employment relationship describes the legal relationship between an employee and employer. In statistics on wages and salaries employment relationships are referred to as either permanent /valid indefinitely or fixed-term. An employment relationship may also concern specific employee categories such as trainees, trainees on apprenticeship contracts, persons with disabilities or 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.

Contractual employment relationship is the corresponding concept referred to in the statistics on wages and salaries in the private sector.

Cf. atypical employment in the Labour Force Survey (fixed-term and/or part-time).

Usual weekly working hours

Information on wage and salary earners' regular weekly working hours is usually collected in connection with wage inquiries. Regular weekly working hours are based on the Working Hours Act and 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. In the case of teachers, regular weekly working hours equal the number of hours on which weekly pay is based.

In the private sector, regular weekly working hours must average out to 40 hours per week within a reference period defined in the collective agreement. For public sector wage and salary earners with office working hours, average weekly working hours are 36.25 hours a week, and for those with general working hours 38.25 hours a week.

In structural statistics on wages and salaries, the regular 40-hour week of workers in industries which pay hourly wages has been shortened with industry-specific solutions, according to the so called "pekkassopimus". The basic consideration has been to secure the earlier income level. The shortening of working time with separate days off has been taken into account in determining regular weekly working hours in such a way that the regular weekly working hours for workers with a 40-hour week are 37.89 hours. The shortening of the working time of municipal hourly wage earners has been executed by shortening regular weekly working hours, not by adding paid or unpaid days off.

Regular wages are based on regular weekly working hours. Cf. Regular wages

Cf. Total working hours

Accuracy, reliability and timeliness

Overall accuracy

The data are mainly sent from local government employers’ payroll systems by means of data transfers. Key errors in the dataset include the payment period related to premium pay, meaning that the reported period does not correspond to the reported euros, or the dataset includes retroactive pay components. The aim is to identify these during a review and replace them with a corrected dataset.

Timeliness

The data for the statistical year are based on wages and salaries earned in October.

Punctuality

The release of the statistics on local government sector wages and salaries for 2022 on 27 April 2023 was postponed to 6 June 2023 and further to 4 September 2023, 4 October 2023 and 1 November 2023. The reason for the delay was the incomplete data from a significant data supplier. There has not been any delay in the release of the statistics before and the data have been published on the days indicated in the release calendar.

Comparability

Comparability - geographical

In principle, the data are comparable between Finland’s different regions and municipalities. At EU level, the comparison takes place through the EU’s Structure of Earnings statistics, which also include Finland’s Structure of Earnings statistics. For further information, see the Structure of Earnings statistics.

Comparability - over time

The statistics on local government sector wages and salaries have been published since 1973.

In 2007, the calculation of local government sector earnings was changed so that the earnings of teachers composed of weekly overtime hours were regarded as earnings during regular working hours. Teachers’ earnings during regular working hours are therefore not comparable with preceding years’ data. This change also affects the averages of the earnings in question in the local government sector as a whole.

In 2014, the position of a few pay factors in different earnings concepts was adjusted. This correction resulted in a roughly 0.5 per cent increase in earnings during regular working hours for teachers and a roughly 0.1 per cent increase in the local government sector as a whole compared with previous years.

Since 2015, the classification of occupations in the statistics on local government sector wages and salaries has been included in employment statistics. This change affected the classification of some 27,000 employees in the 2015 statistics on local government sector wages and salaries, some of which concerned specifications in the classification from a more approximate level. The most significant changes concerned the two-digit level in the classification of occupations regarding the following occupations: 53 (-4,400), i.e. care service and healthcare employees, from which wage and salary earners mainly transferred to occupational group 91 (+4,100), i.e. cleaners, domestic helpers and other cleaners.

The classifications of occupations in the 2014 and 2015 statistics on local government sector wages and salaries are therefore not fully comparable.

Since the 2017 statistical year, Statistics Finland’s 2016 national classification of education has been used in the statistics on local government sector wages and salaries. The classification includes a new level ‘4 Post-secondary non-tertiary education’. Fields of education have undergone more changes. For example, data processing and data communications have been divided into separate categories. As a result, education data are not fully comparable with previous years. The division of education levels and fields in the 2016 national classification of education follows the international ISCED 2011 classification.

Data on local government sector wages and salaries are used in calculating the index of wage and salary earnings. It measures the development of earnings paid for wage and salary earners’ regular working hours. The data included in the statistics on local government sector wages and salaries are also published in the structure of earnings statistics.

Coherence - cross domain

The data included in the statistics on local government sector wages and salaries, with private sector and central government sector wages and salaries, are presented in harmonised comparable format in the structure of earnings statistics.

Coherence - internal

The data included in the statistics on local government sector wages and salaries are published as part of the structure of earnings statistics. The data in the structure of earnings statistics are internally uniform. A uniform concept of ‘total earnings’ is applied to data from different sources. This facilitates comparability between different data sources.

Source data and data collections

Source data

The data are obtained from the payroll systems of municipalities and joint municipal authorities through direct data collection.

Data collection

Data are collected through direct data collection using data collection pages. The data collection pages are located on a Posti Messaging server.

Frequency of data collection

Data on local government sector wages and salaries are collected annually. 

Methods

Data compilation

During production, the dataset is reviewed using SAS-based feedback report software. The feedback report includes an earnings comparison by earnings concept (local government sector in total, employer, contractual field), a pricing identifier comparison, a pay factor comparison, and a review of the regular procedure fees of health centre physicians and dentists. Additional elements can be included in the report if this is considered necessary during the review. Any corrections and additional findings will be entered directly into the production database using SQL. SQL-based correction codes are available for frequently repeated errors (e.g. payment periods). Missing data have not been imputed in the dataset. If any serious quality errors are discovered in the dataset, and the dataset cannot be replaced with corrected data, the status code of the dataset will be changed to 3 (not included in the dataset). For example, such a procedure is necessary when premium pay during regular and irregular working hours is missing from a contractual field. The data will be supplemented regarding any missing or incomplete pricing identifiers, occupation codes and wage factors. Finally, any outliers will be reviewed and removed from the dataset. Outliers will be reviewed using SAS software developed specifically for this purpose.

Data validation

The quality of the dataset for the statistics on local government sector wages and salaries is assessed using a feedback report as statistical production progresses. The feedback report includes information on municipality-specific earnings by earnings concept, pricing identifier and pay factor.

At the last stage, final inspections are conducted for the dataset and any outliers are removed.

Principles and outlines

Contact organisation

Statistics Finland

Contact organisation unit

Social Statistics

Legal acts and other agreements

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.  

Further information: Statistical legislation 

The structure of earnings statistics are based on the following EU regulations and their amending regulations: 
COUNCIL REGULATION (EC) N:o 530/1999 of 9 March 1999
COMMISSION REGULATION (EC) N:o 1916/2000 of 8 September 2000

Confidentiality - policy

The data protection of data collected for statistical purposes is guaranteed in accordance with the requirements of the Statistics Act (280/2004), the Act on the Openness of Government Activities (621/1999), the EU's General Data Protection Regulation (EU) 2016/679 and the Data Protection Act (1050/2018). The data materials are protected at all stages of processing with the necessary physical and technical solutions. Statistics Finland has compiled detailed directions and instructions for confidential processing of the data. Employees have access only to the data essential for their duties. The premises where unit-level data are processed are not accessible to outsiders. Members of the personnel have signed a pledge of secrecy upon entering the service. Violation of data protection is punishable.

Further information: Data protection | Statistics Finland (stat.fi)

Confidentiality - data treatment

For reasons of data protection and reliability, data are not published or distributed in the statistics on local government sector wages and salaries 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.

Release policy

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 are public after they have been updated in the web service. 

Data sharing

Aggregated data will be disclosed to KT and labour market organisations based on data service agreements.

Accessibility and clarity

Statistical data are published as database tables in the StatFin database. The database is the primary publishing site of data, and new data are updated first there. When releasing statistical data, existing database tables can be updated with new data or completely new database tables can be published.   

In addition to statistical data published in the StatFin database, a release on the key data is usually published in the web service. If the release contains data concerning several reference periods (e.g. monthly and annual data), a review bringing together these data is published in the web service. Database tables updated at the time of publication are listed both in the release and in the review. In some cases, statistical data can also be published as mere database releases in the StatFin database. No release or review is published in connection with these database releases. 

Releases and database tables are published in three languages, in Finnish, Swedish and English. The language versions of releases may have more limited content than in Finnish.   

Information about changes in the publication schedules of releases and database tables and about corrections are given as change releases in the web service.

Data revision - policy

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.

Quality assurance

Quality management requires comprehensive guidance of activities. The quality management framework of the field of statistics is the European Statistics Code of Practice (CoP). The quality criteria of Official Statistics of Finland are also compatible with the European Statistics Code of Practice.

Further information: Quality management | Statistics Finland (stat.fi)

User access

Data are released to all users at the same time. Statistical data may only be handled 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 separately stated in connection with the product, data or service concerned, Statistics Finland is the producer of the data and the owner of the copyright. The terms of use for statistical data

Statistical experts

Heli Udd
Senior Statistician
029 551 3522