Labour Cost Index

The Labour Cost Index captures changes in the hourly labour costs borne by enterprises for employing labour.

The labour cost index is compiled as a 'chain-linked Laspeyres cost-index' using a common index reference period (2020 = 100). The index is presented in non-seasonally adjusted and seasonally adjusted form. 

Besides the total labour cost, two additional indices are presented, breaking down each component of total labour cost:
(a) 'Wages and Salaries', that refer to gross wages and salaries, and
(b) 'Non-wage Cost', that refers to employers' social contributions and taxes net of subsidies connected to employment.

Administrative sources and other available data are used to compile the index. Specifically: 
1. data from the Social Insurance Services 
2. data from the Treasury of the Republic of Cyprus
3. hours worked as published by the Statistical Service (National Accounts data) 
4. the latest available results of the Labour Cost Survey.

The data are revised when new data are available from the sources used to calculate the index, regarding either labour cost, or hours worked, or assumptions derived from the Labour Cost Survey results.

Seasonally adjusted data may differ in each publication as when new observations are added, the parameters of the model used change. The model is revised on an annual basis.

The index covers all economic activities except Section A: Agriculture, forestry and fishing, Section T: Activities of households as employers and Section U: Activities of extraterritorial organisations and bodies.

All employees of the  Social Insurance Services’ Records are covered. Excluded are those who report a gross salary that is less than 50% of the minimum salary as determined in the decree issued by the Ministry of Labour and Social Insurance. Excluded also, are salaries in excess of €20,000 per month.

Quarterly.

The index is published on CYSTAT's online database CYSTAT-DB and on Eurostat's website. Data with base year 2020 are available quarterly from the first quarter of 2000.
Additionally, data with base year 2016 are available from the first quarter of 2000 to the fourth quarter of 2022.

The data are comparable over time.

The total labour cost includes gross wages and salaries, employers' social contributions and taxes net of subsidies connected to employment.

Economic activity: Industrial classification of economic activities within the European Communities (NACE Rev. 2).

• Regulation (EC) No 430/2003 of the European Parliament and of the Council concerning the labour cost index.
• Commission Regulation (EC) No 1216/2003 implementing Regulation (EC) No 430/2003 of the European Parliament and of the Council concerning the labour cost index.

08/09/2023