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Commission Implementing Regulation (EU) 2026/2401 of 29 October 2026 setting out the list and description of variables and their technical specifications, statistical classifications, breakdowns, and precision targets for the topic structure of labour costs pursuant to Regulation (EU) 2025/941 of the European Parliament and of the Council

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L_202602401EN.000101.fmx.xml Official Journal of the European Union EN L series 2026/2401 5.11.2026 COMMISSION IMPLEMENTING REGULATION (EU) 2026/2401 of 29 October 2026 setting out the list and description of variables and their technical specifications, statistical classifications, breakdowns, and precision targets for the topic ‘structure of labour costs’ pursuant to Regulation (EU) 2025/941 of the European Parliament and of the Council (Text with EEA relevance) THE EUROPEAN COMMISSION, Having regard to the Treaty on the Functioning of the European Union, Having regard to Regulation (EU) 2025/941 of the European Parliament and of the Council of 7 May 2025 on European Union labour market statistics on businesses, repealing Council Regulation (EC) No 530/1999 and Regulations (EC) No 450/2003 and (EC) No 453/2008 of the European Parliament and of the Council ( 1 ) , and in particular Article 4(7) thereof, Whereas: (1) Statistics on territorial units and economic sectors should be comparable internationally. Therefore the Member States and the Union institutions should use statistical classifications that are compatible with the NUTS ( 2 ) and NACE ( 3 ) classifications. (2) The measures provided for in this Regulation are in accordance with the opinion of the European Statistical System Committee, HAS ADOPTED THIS REGULATION: Article 1 List and description of variables and their technical specifications 1. The list and description of variables, and their technical specifications, to be transmitted to the Commission (Eurostat) for the topic ‘structure of labour costs’, as well as the statistical classifications to be used, shall be as set out in Annex I. 2. Variables relating to apprentices shall be transmitted only by the Member States where they represent more than 1 % of the total number of employees. The proportion of apprentices in the total number of employees shall be assessed on the basis of variable B28 ‘Type of employment contract’, as reported through the latest data of the topic ‘structure of earnings’ for all local units belonging to an enterprise with 10 or more employees ( 4 ) . Article 2 Precision targets The precision targets for statistical surveys shall be as set out in Annex II. Article 3 Formats for transmitting information 1. Member States shall transmit to the Commission (Eurostat) data sets in electronic form with fully checked and edited data that comply with validation rules in accordance with the specification of variables set out in Annex I. Data shall be transmitted in complete data sets covering all variables, regardless of the number of revised observations and variables. 2. Member States shall make available to the Commission (Eurostat) the data required under this Regulation using the statistical data exchange standards specified by the Commission (Eurostat), and the single entry point for data. Article 4 Entry into force This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union . This Regulation shall be binding in its entirety and directly applicable in all Member States. Done at Brussels, 29 October 2026. For the Commission The President Ursula VON DER LEYEN ( 1 ) OJ L, 2025/941, 20.5.2025, ELI: http://data.europa.eu/eli/reg/2025/941/oj . ( 2 ) Regulation (EC) No 1059/2003 of the European Parliament and of the Council of 26 May 2003 on the establishment of a common classification of territorial units for statistics (NUTS) ( OJ L 154, 21.6.2003, p. 1 , ELI: http://data.europa.eu/eli/reg/2003/1059/oj ). ( 3 ) Regulation (EC) No 1893/2006 of the European Parliament and of the Council of 20 December 2006 establishing the statistical classification of economic activities NACE Revision 2 and amending Council Regulation (EEC) No 3037/90 as well as certain EC Regulations on specific statistical domains ( OJ L 393, 30.12.2006, p. 1 , ELI: http://data.europa.eu/eli/reg/2006/1893/oj ). ( 4 ) Commission Implementing Regulation (EU) 2025/1526 of 29 July 2025 setting out the list and description of variables and their technical specifications, statistical classifications and precision targets for the topic ‘structure of earnings’ pursuant to Regulation (EU) 2025/941 of the European Parliament and of the Council ( OJ L, 2025/1526, 30.7.2025, ELI: http://data.europa.eu/eli/reg_impl/2025/1526/oj ). ANNEX I 1. LIST AND DESCRIPTION OF VARIABLES Three data sets shall be transmitted. — Data set A: with national data (one record for each economic activity of the local unit at the section and division levels of the NACE classification). The following NACE aggregates shall be provided as well: NACE sections B to T, B to T excluding P, B to O, B to F, G to O, and P to T. — Data set B: with national data by size class of the enterprise (one record for each economic activity of the local unit at the section and division levels of the NACE classification, for each of the enterprise size classes to which the local unit belongs). — Data set C: with regional data at the NUTS 1 level (one record for each economic activity of the local unit at the section and division levels of the NACE classification, for each of the regions). Data set C is not required for those countries where NUTS 1 corresponds to the national level. For the variables listed below, either data set A only or all three data sets must be provided. Mandatory delivery is indicated by ‘M’ and optional delivery by ‘O’. All variables shall include apprentices as well as paid trainees and interns. ‘M 1 % ’ indicates the variables for apprentices that must be provided by the countries as specified in Article 1(2). Detailed topic Variable identifier Variable name Data set A Data sets B and C ( 1 ) Employees A1 Total number of employees M M A11 Full-time employees M M A12 Part-time employees M M A121 Part-time employees converted into full-time equivalents M M A1A Apprentices M 1 % M 1 % A1A1 Part-time apprentices converted into full-time equivalents M 1 % M 1 % Hours worked B1 Total annual hours actually worked M M B11 Annual hours actually worked by full-time employees M M B12 Annual hours actually worked by part-time employees M M B1A Annual hours actually worked by apprentices M 1 % M 1 % Hours paid C1 Total annual hours paid M C11 Annual paid hours for full-time employees M C12 Annual paid hours for part-time employees M C1A Annual paid hours for apprentices M 1 % Labour costs D1 Compensation of employees M M D11 Wages and salaries M M D111 Direct remuneration, bonuses and allowances M M D1111 Direct remuneration, bonuses and allowances paid in each pay period M D1112 Direct remuneration, bonuses and allowances not paid in each pay period ( 2 ) M D112 Payments to employees’ savings schemes M M D113 Payments for days not worked M M D114 Wages and salaries in kind M M D1141 Company products O D1142 Staff housing ( 3 ) O D1143 Company cars O D1144 Stock options and share-purchase schemes O D1145 Other O D11A Wages and salaries of apprentices M 1 % M 1 % D12 Employers’ social contributions M M D121 Employers’ actual social contributions M M D1211 Statutory social security contributions M D1212 Collectively agreed, contractual and voluntary social security contributions payable by the employer M D122 Employers’ imputed social contributions M M D1221 Guaranteed remuneration in the event of sickness O D1222 Employers’ imputed social contributions for pensions and healthcare O D1223 Payments to employees leaving the enterprise O D1224 Other imputed social contributions of the employer O D12A Employers’ social contributions for apprentices M 1 % M 1 % D2 Vocational training costs paid by the employer M M D3 Other expenditure paid by the employer M M D4 Taxes on labour paid by the employer M M D5 Labour subsidies received by the employer M M D5A Labour subsidies received by the employer in relation to employing apprentices M 1 % M 1 % Local units E1 Number of local units in the universe M M E2 Number of local units in the final data set M M ( 1 ) Data set C is relevant only to countries with NUTS 1 regions. ( 2 ) Except payments to employees’ savings schemes. ( 3 ) Except removal allowances. 2. TECHNICAL SPECIFICATIONS A. Employees Employees are all persons – irrespective of nationality, residency or time worked in a Member State – who have a direct employment relationship with an employer, established by a formal contract or an informal agreement, and who receive remuneration, irrespective of the type of work performed, the number of hours worked (full-time or part-time) or the duration of the contract or agreement (fixed or indefinite, including seasonal). The remuneration of employees can take the form of wages and salaries, and includes bonuses, pay for piecework and shift work, allowances, fees, commission and remuneration in kind. This concept of employees covers manual and non-manual workers and management personnel in the private and public sectors. The following list gives illustrative examples of categories of employees that are included : — civil servants ( 4 ) (also in the armed forces ( 5 ) ); — sales representatives, provided they are on the payroll and receive another form of remuneration in addition to any commission; — paid working proprietors; — apprentices; — paid trainees and interns (articled clerks, student nurses, research or teaching assistants, hospital interns, etc.) who have a formal commitment whereby they contribute to the unit’s production process in return for remuneration; — interim or temporary workers (e.g. secretarial staff) recruited, employed and remunerated by employment agencies to work elsewhere, often for temporary periods; — seasonal and occasional workers, if they have a formal or informal agreement with the enterprise or local unit and pre-defined working hours; — employees for whom labour costs were incurred, for the work done during the reference year, but who were temporarily not at work because of illness or injury, holiday or vacation, strike or lock-out, educational or training leave, maternity or parental ( 6 ) leave, reduced economic activity, suspension of work due to bad weather, mechanical breakdowns, lack of materials, fuels or power, or other temporary absence with or without leave; — those working abroad if they continue to receive remuneration from the employer; — outworkers ( 7 ) , including home workers and teleworkers, if there is an explicit agreement that such workers are remunerated, at least partially, on the basis of the work done: that is, the amount of labour (in hours actually worked) which is contributed as an input into some process of production [European System of Accounts (ESA) 2010, §11.13(g)]. The following categories should be excluded: — sales representatives and other persons who are wholly remunerated by way of fees or commission, are not on the payroll, or who are self-employed; — owners, directors or managers whose remuneration wholly takes the form of a share in profits; — family workers who are not employees (as defined above) of the enterprise or local unit; — own-account workers; — outworkers exclusively paid on piecework rates [ESA 2010, §4.07(e)] bound by a commercial contract (as opposed to a formal, informal or implicit employment contract); — unpaid voluntary workers (e.g. those who typically work for non-profit institutions such as charities). A1 Total number of employees This variable covers full-time employees (A11) and part-time employees (A12), including apprentices as well as paid trainees and interns. Apprentices are also recorded under the dedicated variables (A1A and A1A1) for the countries concerned. Variable A1 should be consistent with variable D1 ‘Compensation of employees’. [ESA 2010, §11.12 to §11.14; European Business Statistics, variable 220102 (‘Number of employees’)] A11 Full-time employees Full-time employees are those whose regular working hours are the same as the collectively agreed or customary hours worked in the enterprise or local unit under consideration, even if their contract is for less than one year. The number of employees to report is the average monthly number of full-time employees employed in the reporting unit during the reference year. A12 Part-time employees Part-time employees are those whose regular working hours are less than the collectively agreed or customary hours worked in the enterprise or local unit, whether daily, weekly or monthly (half day, three-quarter time, four-fifths time, etc.). The number of employees to report is the average monthly number of part-time employees employed in the reporting unit during the reference year. A121 Part-time employees converted into full-time equivalents This conversion is to be carried out either directly by the enterprise or local unit providing the data or by the collecting agency / national statistical institute on the basis of the normal working hours of full-time workers in that enterprise / local unit, using the method they consider most appropriate. The number of employees to report is the average monthly number of part-time employees (converted into full-time equivalents) employed in the reporting unit during the reference year. [ESA 2010, §11.32 to §11.34] A1A Apprentices This covers all employees, full-time or part-time who do not yet fully participate in the production process and who work either under an apprenticeship contract or in a situation in which vocational training predominates over productivity. Besides working in return for remuneration under an employment contract, apprentices should also be engaged in a formal education programme shorter than six years. The apprenticeship contract should last more than six months and alternate practical training at the workplace with theoretical education in an educational institution and lead to a formal qualification (see the decision tree in Figure 1). The number of apprentices to report is the average monthly number employed in the reporting unit during the reference year. A1A1 Part-time apprentices converted into full-time equivalents This conversion is to be carried out either directly by the enterprise or local unit providing the data or by the collecting agency / national statistical institute, using the method they consider most appropriate. The hours spent in training either in the enterprise / local unit or in educational establishments should be excluded. The number of apprentices to report is the average monthly number of part-time apprentices (converted into full-time equivalents) employed in the reporting unit during the reference year ( 8 ) . [ESA 2010, §11.32 to §11.34] Figure 1 Distinguishing apprentices from other employees B. Hours worked This variable covers the total number of hours actually worked by all employees during the year (B1). The total number of hours worked is recorded separately for full-time (B11) and part-time employees (B12). Hours worked by apprentices are also recorded under a dedicated variable (B1A) for the countries concerned. Hours actually worked is the sum of all periods spent on direct and ancillary activities to produce goods and services. Hours actually worked include: — hours worked during normal periods of work; — periods of paid overtime, i.e. hours worked in addition to normal working hours, irrespective of the hourly pay rate applied (e.g. one hour worked at double the normal hourly pay rate should be entered as one hour); — periods of unpaid overtime ( 9 ) ; — time spent on tasks such as work and site preparation; preparing, maintaining, repairing and cleaning tools and machines; making out receipts and invoices; writing up work cards and reports, etc.; — time spent at the place of work during which no work is done owing to, for example, machine stoppages, accidents or occasional lack of work but for which payment is made according to the employment contract; — short rest periods at the place of work, including tea and coffee breaks; — hours spent in training either in the enterprise / local unit or in educational establishments (this item is excluded for apprentices); — hours spent on business trips which are paid by the employer; — periods of on-call work for the hours spent at the workplace and for the hours spent outside the workplace from the time when the employee is called back to duty (including travelling time, e.g. from home to the workplace); — hours spent teleworking provided the employee can be reached by their employer during the usual working hours. Hours actually worked exclude: — hours paid but not worked, for example: paid holidays/vacation, public holidays, absence due to sickness, maternity leave, force majeure events such as extreme weather conditions or natural hazards etc.; — hours not worked and not paid, for example, during sickness and maternity, etc.; — hours not worked (whether paid or not) during special leave for medical examinations, marriages, funerals, moving house, following an accident, etc.; — main meal breaks (i.e. not short rest periods or refreshment breaks); — hours not worked (whether paid or not) during short-time working, labour disputes, lock-outs, etc.; — time spent by the employee travelling between home and their place of work; — hours spent by apprentices in training, either in the enterprise / local unit or in educational establishments. [ESA 2010, §11.27 to §11.29; European Business Statistics, variable 220201 (‘Hours worked by employees’)] C. Hours Paid This variable covers the total number of hours paid by the employer during the year (C1). The total number of paid hours is recorded separately for full-time (C11) and part-time employees (C12). Hours paid to apprentices are also recorded under a dedicated variable (C1A) for the countries concerned. The annual number of paid hours is defined as: — normal and overtime hours remunerated during the year; — any hours for which the employee was paid at a reduced rate, even if the difference was made up by payments from social security funds; — hours not worked during the reference period but nevertheless paid (annual holidays/vacation, absence due to sickness, public holidays and other hours paid, including time off for medical examinations, births, weddings, funerals, moving house, etc.). When certain hours are paid in full or partially by the social security system or by public schemes funded by government, e.g. to support short-time working or temporary lay-offs, the treatment of these cases is detailed below. In cases of sick leave or maternity leave and other forms of absence, such as temporary lay-offs, hours that are paid 100 % by the employer are fully recorded as hours paid. When such hours are fully paid by the social security system or government (i.e. no hours are paid by the employer or they are fully refunded), the corresponding hours should be excluded. In the intermediate case, when a ratio is paid by both the employer (e.g. 25 %) and social security (75 %), the corresponding 100 % of hours paid should be recorded. An example of the different scenarios is illustrated below. Sick leave day 1 to 3 : nothing is paid to the employee; neither by the employer nor by social security — zero (0) hours paid should be recorded. Sick leave day 4 -14 : 75 % is paid by social security and 25 % is paid on voluntary basis by the employer — if the employer pays their 25 % (hence 75 % by the social security + 25 % by the employer), then 100 % of corresponding hours are recorded. — if the employer does not pay their 25 %, then zero (0) hours paid should be recorded. Sick leave day 15+ : 100 % is paid by social security, nothing is paid by the employer — zero (0) hours paid are recorded. Calculation of annual paid hours and annual hours actually worked These calculations are to be carried out either directly by the employer providing the data or by the collecting agencies / national statistical institutes, using the method they consider most appropriate. The following models illustrate how paid hours and hours actually worked can be estimated using the available information. C11 Annual paid hours for full-time employees Where information is available for the variables listed below: (A11) Average monthly number of full-time employees (a) Average annual paid contractual hours of a full-time employee, excluding overtime and main meal breaks (b) Average annual paid overtime hours of a full-time employee the total annual number of paid hours for full-time employees is expressed by the equation (C11) = (A11) × (a + b) which should include the hours that are paid by the employer, in whole or in part, during e.g. a sickness leave. Hours entirely paid by social security are excluded. Annual paid hours for part-time employees (C12) and for apprentices (C1A) Similar models can be used to calculate paid hours for part-time employees and for apprentices. B11 Annual hours actually worked for full-time employees Where information is available for the variables listed below: (C11) Annual paid hours for full-time employees (c) Average annual unpaid overtime of a full-time employee (d) Average daily number of hours actually worked by a full-time employee [i.e. contractual plus overtime hours (both paid and unpaid ), excluding main meal breaks] (X11) Annual number of days paid but not actually worked for full-time employees, which includes the following: (e) Average annual number of days of holidays/vacation per full-time employee, granted by the employer (f) Average annual number of days of official public holidays per full-time employee (g) Average annual number of days of sickness and maternity leave that were paid, in full or in part, by the employer per full-time employee (h) Average annual number of days of short-time working and labour disputes per full-time employee (i) Average annual number of other days not actually worked per full-time employee (e.g. special leave for medical examinations, births, marriage, funerals, moving house, following an accident, etc.) the total annual number of hours worked by full-time employees (before corrections for days not actually worked) is expressed by the equation [C11 + (A11 × c)]. Subtracting the total annual number of hours not actually worked, which is defined by (A11) × d × (X11), gives (B11), i.e. the total annual hours actually worked by full-time employees: (B11) = [C11 + (A11 × c)] - (A11 × d × X11) or: (B11) = (A11) × [(a + b + c) – d × (X11)]. Annual hours actually worked for part-time employees (B12) and for apprentices (B1A) Similar models can be used to calculate hours worked by part-time employees and by apprentices. D. Labour costs Labour costs mean the total expenditure borne by employers in order to employ staff, a concept which has been adopted in the Community framework and complies broadly with the international definition of the International Conference of Labour Statisticians (Geneva, 1966). Labour costs include the compensation of employees with wages and salaries in cash and in kind and employers’ social contributions (D1), vocational training costs (D2), other expenditures (D3), and taxes relating to employment regarded as labour costs (D4), less any subsidies received (D5). The costs for persons employed by temporary employment agencies are to be included in the industry of the agency which employs them and not in the industry of the enterprise for which they actually work. A breakdown at a glance of total labour costs is provided in Figure 2. D1 Compensation of employees Compensation of employees is defined as the total remuneration, in cash or in kind, payable by an employer to an employee in return for work done by the latter during the reference period. It is made up of the following components: — wages and salaries (D11); — employers’ social contributions (D12), mainly consisting of employers’ actual social contributions (D121) and employers’ imputed social contributions (D122). [ESA 2010, §4.02, code D.1; European Business Statistics, variable 220301 (‘Employee benefits expense’)] D11 Wages and salaries Wages and salaries include direct remuneration, bonuses and pay for shift work, allowances, fees, commission and remuneration in kind. However, pay for outworkers paid exclusively on piecework rates is excluded [ESA 2010, §4.07(e)]. Contrary to the national accounts, tips and gratuities are excluded as they are not paid by the employer and are hence not recorded as labour costs in its accounts. Wages and salaries paid to apprentices, trainees and interns are included, and they are also recorded under a dedicated variable (D11A) for the countries concerned. Wages and salaries are recorded in the period during which the work is done. However, ad hoc bonuses or other exceptional payments, 13th month, etc., are recorded when they are due to be paid. The time of recording of stock options is spread over the period between the grant date and vesting date. If the data are inadequate, the value of the option is recorded at vesting date. A full breakdown of wages and salaries is provided in Figure 3. [ESA 2010, §4.03 to §4.07 and §4.12(a) as regards time of recording, code D.11; European Business Statistics, variable 220302 (‘Wages and salaries’)] D111 Direct remuneration, bonuses and allowances Direct remuneration, bonuses and allowances include the values of any social contributions, income taxes, etc., payable by the employee even if they are actually withheld by the employer and paid directly to social insurance schemes, tax authorities, etc. on behalf of the employee. A bonus is a form of reward or recognition granted by an employer. When an employee receives a bonus payment, there is no expectation or assumption that the bonus will be used to cover any specific expense. The value and timing of a bonus payment can be at the discretion of the employer or stipulated in workplace agreements. An allowance is an entitlement granted by the employer to an employee and intended to cover a specific non-work-related expense incurred by the employee. It is often stipulated in workplace agreements and is normally paid at the time of entitlement. D1111 Direct remuneration, bonuses and allowances paid in each pay period This means remuneration in the form of regular cash payments paid regularly at each pay period during the year. For most employees, the pay period is weekly or monthly. Hence, payments received less frequently (monthly in the case of weekly regular payments, quarterly, biannually, annually) or on an ad hoc basis should not be included here. Payments to employees’ savings schemes should be excluded here and are to be included under D112. They should be gross amounts, before the deduction of taxes and social security contributions payable by employees. [ESA 2010, §4.03(a-c, e, g, j), code D.11] Specifically, this variable refers to: (a) basic wages and salaries; (b) direct remuneration calculated on the basis of time worked and paid to employees for hours worked; (c) remuneration and additional payments for overtime, night work, working on Sundays and public holidays, and shift work incurred during the reference period; (d) bonuses and allowances paid regularly at each pay period, including: — workplace bonuses for noise, risk, difficult work, shift or continuous work, night work and working on Sundays and public holidays, — individual performance bonuses, bonuses for output, production, productivity, responsibility, diligence, punctuality, length of service, qualifications and special knowledge. Payments that belong under labour cost item D1111 have the following characteristics. They are cash transactions from an employer to an employee. They are not: — paid on an ad hoc basis or with a frequency below that of the regular remuneration payments (these belong to D1112); — payments in kind (these belong to D114); — payments to an employees’ savings scheme (these belong to D112); — payments intended to cover a specific period that is not worked (these belong to D113 or, in the case of sickness, to D1221). They can: — be bonuses paid for work risks or shift work; — be paid weekly or monthly depending on the normal pay period; — reflect the performance of an employee or group of employees. Examples: Payments that come under variable D1111 Item Description Expatriation allowance / cost-of-living allowance Payment to employees working outside their usual country of origin or residence / their usual domicile to reflect the difference in the costs of living. Household allowance Payment towards the costs of accommodation. Duty or on-call payments Payment for employees who must be available to work during periods outside normal working hours. Additional pay for risks or hazards Bonus paid to employees where there are specific risks associated with the work, e.g. dangerous chemicals. Reduced working time allowance Extra payment (non-guaranteed) to compensate employees in full or in part for a reduction in the normal working time (guaranteed payments belong to D1224). Sales commissions Bonus linked to the number of products sold. Overtime pay Bonus payment for hours worked beyond the normal working hours. Retention allowance Continuous payment to encourage or commit existing employees to stay with the employer. Payment by results Bonus payment dependent on the number of products processed by the employee, e.g. the number of garments made. Shift pay Bonus payment for working non-standard hours, e.g. during the night. D1112 Direct remuneration, bonuses and allowances not paid in each pay period All payments to employees which are not paid regularly at each pay period (weekly or monthly), including bonuses and allowances paid at fixed periods, but not regularly at each pay period, and bonuses linked to individual or collective performance. Exceptional payments to employees who leave the enterprise are included here, provided that such payments are neither linked to a collective agreement nor required by law. If no information about a possible linkage with a collective agreement is available or if it is known that such a linkage exists, exceptional leave payments are excluded here and should be included under D1223 Payments to employees leaving the enterprise . Payments to employees’ savings schemes are also excluded and covered by D112. Variable D1112 likewise refers to gross amounts before deduction of taxes and social security contributions payable by employees. [ESA 2010, §4.03(d, f, i), code D.11] Payments that belong under labour cost item D1112 have the following characteristics. They are cash transactions from an employer to an employee. They are not: — paid in every pay period (these may belong to D1111); — payments in kind (these belong to D114); — payments to an employees’ savings scheme (these belong to D112); — payments intended to cover a specific period that is not worked (these belong to D113 or, in the case of sickness, to D1221). They can: — be an allowance towards specific costs or expenses; — reflect the performance of an employee or group of employees; — represent compensation for special duties or functions; — be an obligatory payment stipulated in the employment contract, in the collective agreement or required by law (except for leaving or retirement bonuses); — be a discretionary payment; — be paid either at variable time points or at fixed points during the year. Examples: Payments that come under variable D1112 Item Description Exceptional length-of-service award Paid once when an employee has worked a specific number of years for the employer. Retirement bonus Payment on retiring from employment, not associated with pension entitlements, if those payments are not linked to a collective agreement nor required by law (otherwise, or if no information about a possible linkage with a collective agreement is available, these payments belong to D1223). Leaving bonuses (‘golden handshake’) Exceptional payments to employees leaving the enterprise if those payments are neither linked to a collective agreement nor required by law (otherwise or if no information about a possible linkage is available, exceptional leave payments are assigned to D1223). Recruitment incentive Single payment paid to a new employee at the start of employment. Backdated pay arrears Payments which represent increases in direct remuneration that are applied retrospectively. Company merger bonus One-off payment made to employees as a result of a company merger. Employee recognition awards Exceptional payment awarded by the employer to reward individuals or groups of employees. Productivity bonuses / awards for meeting performance targets Payments which depend on an employee or group of employees achieving pre-set targets, e.g. relating to sales, customer service or budgets. Special holiday bonuses Paid at the time of certain festivals or holidays, e.g. Christmas. Company profit-sharing and stock appreciation rights Payment in cash that depends on the company’s profit. Stock appreciation rights represent a form of company profit-sharing where an employee becomes entitled to a future cash payment based on the increase in the company’s share price from a specified level over a specified period of time. Stock appreciation rights are to be evaluated at and refer to the time of the cash payment, regardless of the value at grant date or the duration of the vesting period. Quarterly company bonuses Paid every quarter, on the basis of the employer’s profit or performance (pay period assumed not to be each quarter). Annual company bonus Paid once each year and depends on the employer’s profit or performance. 13th or 14th month pay Annual extra payments (i.e. excluding 13th or 14th month paid in monthly instalments). D112 Payments to employees’ savings schemes Sums paid into savings schemes for employees (company savings schemes, share-purchase schemes, etc.). Payments made to set up a special fund for purchasing company shares or other financial assets for employees, even if they do not have immediate access to such assets, must be reduced by the amount of any tax exemption which may apply to them. The distribution of shares, free of charge or the sale of shares at a reduced price to staff or to the special funds may be regarded as expenditure only if the shares in question are purchased on the market. The cost to the enterprise is determined by the difference between the purchase price and the selling or transfer price. If payments to employee savings account are done regularly, in every pay period (e.g. every month) then they should be considered as regular payments and recorded at the time the work is done. Alternatively, if payments to employee savings account are done on an ad hoc basis (e.g. the employer decides to redistribute a share of the company’s profits to its employees’ savings account) then they should be recorded when they are due to be paid. [ESA 2010, §4.03(h), code D.11] D113 Payments for days not worked Remuneration paid for statutory, contractual or voluntarily granted leave and public holidays or other paid days not worked. Examples: Payments that fall under variable D113 Item Description Holiday pay Payments to employees to cover days not worked owing to annual, national or local holidays (payments made by the employer to cover employees’ absences due to sickness or maternity leave are treated as employers’ social contributions under D1221). Special leave Payments to employees to cover days not worked for special personal reasons, e.g. marriage, death of family members, union representation, military or jury service. (Payments made by the employer to cover employees’ absences due to sickness or maternity leave are treated as employers’ social contributions under D1221). D114 Wages and salaries in kind This refers to all goods and services made available free of charge or at a reduced price by employers to employees through the employer. It includes company products, staff housing, company cars, stock options and share-purchase schemes. If information is available on personal income taxation on wages and salaries in kind, this could be used as a proxy. [ESA 2010, §4.04, §4.05 and §4.06, code D.11] Examples: Wages and salaries that fall under variable D114 Item Description Further breakdown Product discounts The employer sells products to employees at reduced rates. The income in kind is equal to the difference between the market price and the reduced price. D1141 Free or subsidised housing The employer pays employees’ housing costs in full or in part. Again, the income in kind is arrived at by comparing it with the market price. D1142 Use of a car owned by the employer The employer meets the running costs for a car owned by the employer and made available to the employee for business as well as private use (the income in kind refers to the value of the use of the private car). D1143 Free or subsidised petrol The employer pays all or part of the employee’s private fuel costs associated with the use of a car owned by the employer. The income in kind is equal to the cash value of this benefit. D1143 Share-purchase schemes Share-based payments in kind where shares are granted to employees as part of their compensation packages. The employee receives the shares without delay at a price below the market price (stock appreciation rights are cash-settled forms of share-based compensation and should come under D1112). D1144 Stock options Share-based payments in kind where shares are granted to employees as part of their compensation packages. The employee receives the right to buy shares at a well-defined point of time in the future for a price already fixed in the present (stock appreciation rights are cash-settled forms of share-based compensation and should come under D1112). D1144 Free or subsidised parking at work The employer provides parking facilities for employees at reduced or zero cost to the employee. The income in kind is equal to the cash value of this benefit. D1145 Free or subsidised use of a mobile telephone The employer provides a mobile phone for business and private use and pays all the associated costs. The income corresponds to the cash value of this benefit. D1145 Free or subsidised travel to and from work Employees’ travel costs to and from work are paid in full or in part. The income in kind is equal to the cash value of this benefit. D1145 Free or subsidised meals Meals are provided by the employer at reduced or zero cost to the employee. The income in kind is equal to the cash value of this benefit. D1145 Free or subsidised costs related to teleworking The employer pays employees’ costs related to teleworking (only if full cost is covered on internet subscription, heating, electricity) where this also benefits the employee as a private user. The income in kind is equal to the cash value of this benefit. Partial refund not benefiting the employee is recorded in D3. D1145 D1141 Company products (optional) These are supplied free of charge for private use or sold to staff below their cost to the enterprise. For example, food and drink (excluding expenditure on canteens and meal vouchers), coal, gas, electricity, fuel oil, heating, footwear and clothing (excluding working clothes), micro-computers, etc. The net price to the enterprise should be entered, i.e. the cost of the products supplied free of charge or the difference between the cost and the price at which the products are sold to staff. Compensatory payments or benefits in kind which are not taken up must also be entered. D1142 Staff housing (optional) This refers to expenditure by the enterprise to assist employees with housing, including: (i) expenditure on housing owned by the enterprise (expenditure on the maintenance and administration of housing, and tax and insurance relating to such housing); (ii) reduced-interest loans for the construction or purchase of housing by staff (the difference between the interest payment at market rates and at the rate granted); (iii) and allowances and subsidies granted to employees in connection with their housing and installation, but excluding removal allowances. It does not include household allowances paid to employees to cover some of their housing costs, which are recorded under D1111. D1143 Company cars (optional) Company cars, or the cost to the enterprise of company cars supplied to employees for their private use. It should include the net running costs incurred by the enterprise (the annual cost of leasing and interest payments - depreciation, insurance, maintenance and repairs and parking). It should not include the capital expenditure involved in purchasing the vehicles, any income derived from their resale, or the proportion of the costs attributable to work-related use. Estimates should be calculated on information available in the enterprises, for example records of the fleet of vehicles of this type, the assessment of the average cost per vehicle, and the estimate of the proportion attributable to the private use of the vehicle by the employee. D1144 Stock options and share-purchase schemes (optional) This optional variable refers to all forms of payments in kind linked to share-based compensation. Stock options, share-purchase schemes and other equity instruments possibly evolving in the future belong to this category. A typical feature of such instruments is that they are equity-settled, i.e. they represent a transfer of equity instruments from the employer to the employee. The forms of compensation covered by D1144 are identical to those covered by the heading ‘Equity-settled share-based payment transactions’ of the International Financial Reporting Standard 2, ‘Share-based payment’. Share-purchase schemes typically transfer shares from the employing enterprise to employees. The transfer takes place in the present (grant date) and is based on a price below today’s market price (the ‘strike price’). The costs to the enterprise are equivalent to the product of the number of shares and the difference between the market price and the ‘strike price’. Stock options schemes typically transfer the right to buy the employing enterprise’s shares not before a well-defined point of time in the future (vesting date) at a favourable ‘strike price’ already fixed in the present (grant date). Employees will make use of this right only if the market price on or after the vesting date exceeds the ‘strike price’. The costs to the enterprise are again equivalent to the product of the number of shares and the difference between the market price and the ‘strike price’. In both labour costs statistics and accounting, the costs are assigned to and distributed over the ‘vesting period’, which is the period between the grant date and the vesting date. These values are uncertain during the vesting period and therefore have to be estimated. An estimate of the variable D1144 for the reference year could ideally be arrived at with the help of guidelines from International Financial Reporting Standard 2, ‘Share-based payment’. If such an estimate is not available, values according to accounting standards or the Member State’s tax regulations can be used, provided that they cover the equity instruments of D1144 and refer to the reference period of the topic ‘structure of labour costs’. Payments made to set up a special fund for purchasing company shares for employees, even if they do not have immediate access to such assets, must be reduced by the amount of any tax exemption which might apply to them. Cash-settled share-based compensation such as stock appreciation rights are covered not by variable D1144, but by D1112. D1145 Other (optional) This variable covers, in particular, indirect benefits chargeable to the employer, such as: — canteens and meal vouchers; — cultural, sporting and leisure facilities and services; — kindergartens and day nurseries; — staff shops; — transport costs for journeys between home and the usual place of work; — payments into trade union funds and the costs of works committees. All such expenditure includes small repairs and regular maintenance of buildings and installations devoted to social, cultural or leisure services and facilities as listed above. Salaries and wages paid by the enterprise directly to staff working in these services and facilities are not entered under the heading of variable D1145. D11A Wages and salaries of apprentices This variable includes all the components of wages and salaries listed under D11 that concern apprentices. D12 Employers’ social contributions This variable refers to an amount equal to the value of the social contributions payable by employers to social security schemes or other employment-related social insurance schemes in order to secure for their employees the entitlement to social benefits. Employers’ social contributions may be either actual or imputed. [ESA 2010, §4.08, code D.12; European Business Statistics, variable 220303 (‘Social security costs’)] They cover the following risks and needs: sickness invalidity, disability occupational accident or disease old age survivors maternity family promotion of employment unemployment housing education general neediness. [ESA 2010, §4.84] They include employers’ social contributions payable to apprentices, which are also recorded for the countries concerned under a dedicated variable (D12A). A full breakdown of employer’s social contributions by component is provided in Figure 4. D121 Employers’ actual social contributions These consist of payments made by employers for the benefit of their employees to insurers (social security and other employment-related social insurance schemes). These payments cover statutory, conventional, contractual and voluntary contributions in respect of insurance against social risks or needs. Employers’ actual social contributions are recorded in the period during which the work is done. [ESA 2010, §4.09, code D.121 and §4.12(b) as regards the time of recording] Examples: Payments that fall under variable D121 Item Description Further breakdown Employers’ payments to an insurance scheme for disability Regular funded payments of the employer into the insurance scheme. D1211 Employers’ statutory payments to pension funds The employer pays during the period of employment into a pension scheme involving a social security fund, an insurance enterprise or an autonomous pension fund. D1211 Enhanced employer pension contributions The employer pays an extra contribution to the employee’s pension scheme. D1212 D1211 Statutory social security contributions Contributions paid to social security institutions or insurance schemes to cover any of the risks and needs listed under D12 , payable by the employer and made compulsory by law. The amounts of such statutory contributions must be entered net of any subsidies. They include in particular statutory contributions to: (a) insurance schemes for retirement pension, sickness, maternity, and disability; (b) unemployment insurance schemes; (c) insurance schemes for occupational accidents and diseases; (d) family allowances schemes. They exclude family allowances and other gratuities in cash fixed by collective agreements or voluntarily agreed, which are recorded as employers’ imputed social contributions (D122). D1212 Collectively agreed, contractual and voluntary social security contributions payable by the employer These are all contributions paid by the employer to social security institutions or insurance schemes to cover any of the risks and needs listed under D12 , which are supplementary to those which are compulsory by law. Account should be taken of any tax exemptions which may apply. These contributions include in particular: (a) supplementary pension schemes, occupational pension schemes (insured plans, self-administered funds, book reserves or provisions, all other expenditure intended to fund supplementary pension schemes); (b) supplementary sickness insurance schemes; (c) supplementary unemployment insurance schemes. D122 Employers’ imputed social contributions Employers’ imputed social contributions are needed in order to get a complete measure of labour costs at the time the work is done. They represent the counterpart of compulsory direct social benefits in the period during which the work is done, and the counterpart of voluntary direct social benefits at the time these benefits are provided. Unfunded social benefits are paid directly by employers to their employees or former employees and other eligible persons without involving a social security fund, an insurance enterprise or an autonomous pension fund, and without creating a special fund or segregated reserve for the purpose. Instead, the benefits are paid out of the own resources of the employers that operate unfunded schemes. The fact that certain social benefits are paid directly by employers, and not through the medium of social security funds or other insurers, in no way detracts from their character as social welfare benefits. D122 may be particularly relevant when the employer is a non-market producer (government sector). The amount of D122 is determined by reference to the employers’ future obligations to provide social benefits. The ideal source for calculating D122 for employers operating unfunded social insurance schemes are estimates based on actuarial considerations. If such actuarial estimates are not available, other estimation methods should be applied. Some countries, for example, use the observable unfunded social benefits paid, less any employees’ social contributions, as an estimate for D122. Variable D122 includes, in particular, employers’ imputed social contributions for pensions and healthcare. It also includes an amount equal in value to the wages and salaries which employers temporarily continue to pay in the event of their employees’ sickness, maternity, industrial injury, disability, redundancy, etc., if that amount can be separated. [ESA 2010, §4.10, code D.122 and §4.12(c) as regards the time of recording] Examples: Payments that come under variable D122 Item Description Further breakdown Payments during maternity leave The employer pays the employee directly during maternity leave as compensation for loss of earnings. D1221 Employers’ imputed social contributions for pensions of civil servants The employer does not make payments into a pension scheme during the person’s employment. Pensions are later paid out from the employer’s own resources. D1222 Payments into early retirement schemes for part-timers Additional payments made by the employer into part-time early retirement schemes. D1222 Severance payments based on a collective agreement The employer makes the payments directly to employees leaving the enterprise. D1223 Family allowances fixed by collective agreements or agreed voluntarily Family allowances and gratuities paid by the employer beyond the statutory requirements. D1224 Study grants The employer meets part or all of the cost of non-work-related training undertaken outside the enterprise. D1224 Marriage or childbirth award Payment made to the employee following the event. D1224 Free or subsidised child education Education fees for the employee’s children are paid in full or in part. D1224 Reduced working time allowance Guaranteed payment to compensate employees in full or in part for a reduction in the normal working time (additional payments, paid in each pay period, belong to D1111). D1224 D1221 Guaranteed remuneration in the event of sickness (optional) This variable covers sums paid directly by the employer to employees to maintain remuneration in the event of sickness, maternity or occupational accident to compensate for loss of earnings, minus any reimbursements paid by social security institutions. D1222 Employers’ imputed social contributions for pensions and healthcare (optional) This component of D122 covers imputed payments to unfunded pension and healthcare schemes, in particular in the government sector. In some countries, employers in the general government sector operate unfunded pension schemes either for all employees or for specific groups (officials). In these cases, the employer does not create special reserves or accumulate assets to pay future pensions. For these employees, imputed employers’ payments to pension and healthcare schemes must be taken into account. D1223 Payments to employees leaving the enterprise (optional) This component represents sums paid to dismissed workers (severance pay and compensation in lieu of notice) if these payments are either required by law or linked to a collective agreement, or where the existence of such a linkage is unknown. Payments made at the discretion of the employer, i.e. neither regulated by law nor linked to a collective agreement are included in D1112. Payments made to employees on retirement, e.g. as part of their pension entitlement, should not be included in D1223. D1224 Other imputed social contributions of the employer (optional) This item refers to all other imputed social contributions of the employer not mentioned elsewhere, such as study grants for employees and their families or guaranteed remuneration in the event of short-time working. The latter is defined as direct payments of the employer to employees to maintain remuneration in the event of short-time working minus any reimbursements paid to the employer by social security institutions. D12A Employers’ social contributions for apprentices This variable is the sum of contributions actually paid (D121) and any imputed contributions (D122) for the sub-population of apprentices. [ESA 2010, §4.09, code D.121, §4.10, code D.122 and §4.12(b, c) as regards the time of recording] D2 Vocational training costs paid by the employer These include expenditure on vocational training services and facilities (also those for apprentices, as well as paid trainees and interns but not their wages and salaries); small repairs and maintenance of buildings and installations, excluding staff costs; expenditure on participation in courses; the fees of instructors from outside the enterprise; expenditure on teaching aids and tools used for training; sums paid by the enterprise to vocational training organisations, etc. Subsidies linked to vocational training should be deducted. [ESA 2010, Intermediate consumption] Examples: Payments that come under variable D2 Item Description Fees for instructors from outside the enterprise Costs related to vocational training for employees, e.g. organised in the form of in-house seminars (subsidies, if any, should be deducted). Expenditure on teaching aids Costs related to vocational training, e.g. in the form of Intranet-based e-courses developed by specialist companies (subsidies, if any, should be deducted). D3 Other expenditure paid by the employer This includes in particular: (a) recruitment costs [these are the sums paid to recruitment agencies, expenditure on job advertisements in the press, travel expenses paid to candidates called for interview, installation allowances paid to newly recruited staff, etc., but it does not include administration running costs (office expenses, staff wages, etc.)]; (b) working clothes provided by the employer; (c) daily allowances paid to employees to cover costs incurred while on a business trip (per diems) ( 10 ) ; (d) employees’ costs related to teleworking (e.g. only partial refund of internet subscription, partial refund of the heating or electricity bill) where they do not benefit the employee as a private user. Full refund benefiting the employee as private user is recorded in D1145. [ESA 2010, Intermediate consumption] Examples: Payments that come under variable D3 Item Description Clothing allowance Paid in occupations where special clothing is required, e.g. for protection or presentation and not intended for personal use. Recruitment costs Costs of recruitment agencies or job advertisements. Installation or relocation allowance Paid when the employee is required to change the place of residence. Free or subsidised costs related to teleworking Partial internet subscription, partial refund of the heating or electricity bill. D4 Taxes on labour paid by the employer This variable covers all taxes based on the total wage and salary bill, or on employment. These taxes are considered as labour costs. Variable D4 also covers penalty taxes to be paid in some countries by employers for employing too few persons with a disability, and similar taxes or fees. It does not include social contributions payable by the employer, the amounts withheld by the employer to pay social contributions or income taxes payable by the employee. [ESA 2010, §4.23(c), code D.29] D5 Labour subsidies received by the employer These are all amounts received in the form of subsidies intended to refund part or all of the cost of direct remuneration but not intended to cover social security or vocational training costs. They do not include refunds paid to the employer by social security institutions or supplementary insurance funds. They include labour subsidies that refund the cost of remunerating apprentices as well as paid trainees and interns. Labour subsidies concerning apprentices are also recorded, for the countries concerned, under a dedicated variable (D5A). [ESA 2010, §4.37(a), code D.39] D5A Labour subsidies received by the employer in relation to employing apprentices These are the subsidies recorded under item D5 which refund part or all of the remuneration paid to apprentices. E. Local Units E1 Number of local units in the universe This variable records the total number of local units in the whole population of resident enterprises. E2 Number of local units in the final data set This variable records the total number of local units for which data for the topic ‘structure of labour costs’ is collected, that is after deducting non-response and eliminating the local units that do not belong to the statistical population. Figure 2 Labour costs and their main components * Of which: ‘Labour subsidies received by the employer in relation to employing apprentices’ ( D5A ) Figure 3 Disaggregation of the component ‘Wages and salaries’ (D11) * Of which: ‘Wages and salaries of apprentices’ ( D11A ) Figure 4 Disaggregation of the component ‘Employers’ social contributions’ (D12) * Of which: ‘Employers’ social contributions for apprentices’ ( D12A ) ( 4 ) This category includes ‘civil servants and other government employees whose terms and conditions of employment are laid down by public law’ [ESA 2010, §11.13(b)]. ( 5 ) ‘Members of the armed forces are those personnel who are currently serving in the armed forces, including auxiliary services, whether on a voluntary or compulsory basis, and who are not free to accept civilian employment and are subject to military discipline. Included are regular members of the army, navy, air force and other military services, as well as conscripts enrolled for military training or other service for a specified period’ (International Standard Classification of Occupations - ISCO-08). ( 6 ) Employees on parental leave should be included provided at least one hour was paid by the employer to the employee during the reference year. In the case of employees who are replaced during their parental leave, one should record: (a) only one employee in the number of employees, to avoid the double counting of the job-holder and their substitute; (b) labour costs borne by the employer for both the job-holder and their substitute, during the reference period; (c) hours worked / paid for both the job-holder and their substitute. ( 7 ) An outworker is a person who agrees to work for a particular enterprise or to supply a certain quantity of goods or services to a particular enterprise by prior arrangement or contract with that enterprise, but whose place of work is not within it. ( 8 ) If preferred, the average can be based on the weekly (or daily) numbers of employees over the reference year / period. An average based on quarterly figures is also admissible. ( 9 ) Unpaid hours worked as a component of ‘hours actually worked’ often have to be estimated for example from household survey data. ( 10 ) Per diems are intended to cover costs of food (meals), tickets for public transportation in the place where business trip takes place (e.g. tram, bus, train, taxi; with the exception of the first means of transport used upon arrival and the last one used upon return to the country of employment) but paid as a lump sum to be used at the discretion of the employee. In business accounting, per diems are recorded as reimbursements of work-related expenses (such as travel costs to and from work). In the national accounts, they are part of the compensation of employees. In labour cost statistics, they should be recorded under variable D3 ‘Other expenditure paid by the employer’. Travel costs during the business trip usually relate to the cost for train/plane/bus tickets or fees for using a private car for work purposes. They are refunded upon presentation of the corresponding invoices (e.g. for train/plane/bus tickets or fuel costs). They are recorded as intermediate consumption in the national accounts and should therefore not be recorded. Accommodation costs cover expenses incurred by employees for overnight stay in e.g. hotels. They are reimbursed against the presentation of valid documents proving that the employee had to bear those expenses. They are recorded as intermediate consumption in the national accounts and should therefore not be recorded. ANNEX II Precision targets 1. Member States that use sampling methods shall aim to keep the coefficient of variation below 1 % for the mean hourly labour costs measured for all (part-time and full-time) employees working in resident local units of resident enterprises that have 10 employees or more and that belong to the total of all NACE sections in the scope of the topic ‘structure of labour costs’ as defined in Article 6(4) of Regulation (EU) 2025/941. 2. Member States that use sampling methods shall aim to keep the coefficient of variation below 10 % for the mean hourly labour costs measured for all (part-time and full-time) employees working in resident local units of resident enterprises with 10 employees or more. This requirement applies to each NACE section in the scope of the topic ‘structure of labour costs’ as defined in Article 6(4) of Regulation (EU) 2025/941. However, it does not apply to NACE sections which, in the reference year, account for less than 1 % of the total labour costs of the total of all NACE sections in the scope of the topic ‘structure of labour costs’. 3. Data transmitted under this Regulation shall be flagged as ‘low reliability’ if their coefficient of variation is higher than 25 %. ELI: http://data.europa.eu/eli/reg_impl/2026/2401/oj ISSN 1977-0677 (electronic edition)

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