http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/2020-01-31Commission Regulation (EC) No 1726/1999 of 27 July 1999 Implementing Council Regulation (EC) No 530/1999OJ L 63, 12.3.1999, p. 6. concerning structural statistics on earnings and on labour costs as regards the definition and transmission of information on labour costsCommission Regulation (EC) No 1726/1999Commission Regulation (EC) No 1726/1999 of 27 July 1999 Implementing Council Regulation (EC) No 530/1999OJ L 63, 12.3.1999, p. 6. concerning structural statistics on earnings and on labour costs as regards the definition and transmission of information on labour costs2024-06-20King's Printer of Acts of Parliamenthttps://webarchive.nationalarchives.gov.uk/eu-exit/https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX:01999R1726-20080101texttext/xmlen2008-01-01 ANNEX II <Substitution ChangeId="O001001M002" CommentaryRef="c000002">DEFINITIONS OF THE VARIABLES</Substitution> D. <Substitution ChangeId="O001001M002" CommentaryRef="c000002">LABOUR COSTS</Substitution>

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 compensation of employees (D.1) with wages and salaries in cash or in kind and employers' social contributions, vocational-training costs (D.2), other expenditures (D.3), taxes relating to employment regarded as labour costs (D.4), less any subsidies received (D.5). The costs for persons employed by temporary employment agencies are to be included in the industry of the agency which employs them ( NACE Rev. 2, 78,20 ) and not in the industry of the enterprise for which they actually work.

A breakdown at a glance of total labour costs by component is provided by Figures 1 to 3 in Annex I.

D.1 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Compensation of employees</Substitution>

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 broken down into:

wages and salaries (D.11), mainly consisting of wages and salaries (excluding apprentices) (D.111) and wages and salaries of apprentices (D.112) employers' social contributions (D.12), mainly consisting of employers' actual social contributions (excluding apprentices) (D.121), employers' imputed social contributions (excluding apprentices) (D.122) and employers' social contributions for apprentices (D.123).

References ESA 95: 4.02 (code D.1), SBS: code 13310 (personnel costs) D.11 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries</Substitution>

Wages and salaries include bonuses, pay for piecework and shift work, allowances, fees, tips and gratuities, commission and remuneration in kind. They are recorded in the period during which the work is done. However, ad hoc bonuses or other exceptional payments (13 th month pay, back-dated pay arrears, etc.) are recorded when they are due to be paid.

A full breakdown of wages and salaries by component is given in Figure 2 in Annex I.

References ESA 95: 4.03 to 4.07 and 4.12(a) (code D.11); SBS: code 13320 (wages and salaries) D.111 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries (excluding apprentices)</Substitution> D.1111 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Direct remuneration, bonuses and allowances</Substitution>

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 expense, not work-related, incurred by the employee. It is often stipulated in workplace agreements and is normally paid at the time of entitlement.

D.11111 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Direct remuneration, bonuses and allowances paid in each pay period</Substitution>

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, bi-annually, 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 D.1112.

Specifically, the variable refers to:

basic wages and salaries, direct remuneration calculated on the basis of time worked, output or piecework and paid to employees for hours worked, remuneration and additional payments for overtime, night work, working on Sundays and public holidays, and shift work, bonuses and allowances paid regularly at each pay period, such as: 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; regularly paid length-of-service bonuses; qualifications and special knowledge.

Further examples of pay items which should be included here are given in the Appendix to Annex II.

Variable D.11111 refers to gross amounts before deduction of taxes and social-security contributions payable by employees.

D.11112 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Direct remuneration, bonuses and allowances not paid in each pay period</Substitution>

All payments to employees which are not paid regularly at each (weekly or monthly) pay period. These include bonuses and allowances paid at fixed periods (e.g. paid monthly where regular payments are weekly, or paid quarterly, bi-annually or annually), and bonuses linked to individual or collective performance. Exceptional payments to employees who leave the enterprise are included here, provided that such payments are not linked to a collective agreement. 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 D.1223. Payments to employees’ savings schemes are also excluded and covered by D.1112.

Examples of pay items belonging to D.11112 are listed in the Appendix to Annex II.

Variable D.11112 likewise refers to gross amounts before deduction of taxes and social-security contributions payable by employees.

D.1112 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments to employees' savings schemes</Substitution>

This refers to sums paid into savings schemes for employees (such as company savings schemes).

Reference ESA 95: 4.03(i)
D.1113 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments for days not worked</Substitution>

Remuneration paid for statutory, contractual or voluntarily granted leave and public holidays or other paid days not worked. The Appendix to Annex II provides examples.

D.1114 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries in kind</Substitution>

This variable refers to an estimate of the value of all goods and services made available to employees through the enterprise or local unit. 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.

The Appendix to Annex II gives examples of wages and salaries in kind.

Reference ESA 95: 4.04, 4.05, 4.06 (code D.11) D.11141 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Company products</Substitution>

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 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.

D.11142 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Staff housing</Substitution>

This refers to expenditure by the enterprise to assist employees with housing, including: expenditure on housing owned by the enterprise (expenditure on the maintenance and administration of housing, and tax and insurance relating to such housing) and 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), allowances and subsidies granted to employees in connection with their housing, and installation, but excluding removal allowances.

D.11143 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Company cars</Substitution>

Company cars, or the cost to the enterprise of company cars supplied to employees for their private use. This 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 or any income derived from their resale.

Estimates should be calculated from information available in the enterprises, such as 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.

D.11144 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Stock options and share purchase schemes</Substitution>

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 enterprise/local unit to the employee. The forms of compensation covered by D11144 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 amount 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) to 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 amount 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 D.11144 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 tax regulation of the Member State can be taken, provided that they cover the equity instruments of D.11144 and refer to the Labour Cost Survey reference period.

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 D.11144, but by D.11112.

D.11145 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Other</Substitution>

This covers in particular indirect benefits chargeable to the employer:

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 D.11145.

D.112 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries of apprentices</Substitution>

See D.11.

D.12 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers' social contributions</Substitution>

This variable refers to an amount equal to the value of the social contributions incurred by employers in order to secure for their employees the entitlement to social benefits. Employers' social contributions may be either actual or imputed.

A full breakdown of employer’s social contributions by component is provided by Figure 3 in Annex I.

References ESA 95: 4.08 (code D.12); SBS: code 13330 (social-security costs) D.121 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers' actual social contributions (excluding apprentices)</Substitution>

These consist of payments made by employers for the benefit of their employees to insurers (social-security funds and private funded schemes such as occupational-pension 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.

Examples are given in the Appendix to Annex II.

Reference ESA 95: 4.09 (code D.121) and 4.12(b) D.1211 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Statutory social-security contributions</Substitution>

Contributions paid to social-security institutions payable by the employer and made compulsory by law. The amounts of such contributions must be entered net of any subsidies. They include:

contributions to insurance schemes for retirement pension, sickness, maternity and disability, statutory contributions to unemployment insurance schemes, statutory contributions to insurance schemes for occupational accidents and diseases, statutory contributions to family allowance schemes, all other statutory contributions not mentioned elsewhere.

D.1212 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Collectively agreed, contractual and voluntary social-security contributions payable by the employer</Substitution>

These are all contributions paid by the employer to social-security schemes which are supplementary to those which are compulsory by law. Account should be taken of any tax exemptions which might apply. They include:

supplementary pension schemes, occupational pension schemes (insured plans, self-administered funds, book reserves or provisions, all other expenditure intended to fund supplementary pension schemes), supplementary sickness insurance schemes, supplementary unemployment insurance schemes, all other non-compulsory supplementary social-security schemes not mentioned elsewhere.

D.122 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers’ imputed social contributions (excluding apprentices)</Substitution>

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 to the observable unfunded social benefits paid.

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. D.122 may be particularly relevant when the employer is a non-market producer (government sector).

The amount of D.122 is determined by reference to the employers’ future obligations to provide social benefits. The ideal source for calculating D.122 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 eventual employees' social contributions, as an estimate for D.122.

Variable D.122 includes in particular imputed employers’ social contributions for pensions and health care. It also includes an amount equal in value to the wages and salaries which employers temporarily continue to pay in the event of sickness, maternity, industrial injury, disability, redundancy, etc. of their employees, if that amount can be separated.

Examples are given in the Appendix to Annex II.

Reference ESA 95: 4.10 (code D.122) and 4.12(c) D.1221 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Guaranteed remuneration in the event of sickness</Substitution>

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.

D.1222 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers' imputed social contributions for pensions and health care</Substitution>

This component of D.122 covers imputed payments to unfunded pension and health care schemes, in particular in the government sector. In some European 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 health-care schemes must be taken into account.

D.1223 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments to employees leaving the enterprise</Substitution>

This component represents sums actually paid to dismissed workers (severance pay and compensation in lieu of notice) if these payments are linked to a collective agreement or if the existence of such a linkage is unknown. Payments not linked to a collective agreement are included in D.11112.

Payments made to employees on retirement, e.g. as part of their pension entitlement, should not be included in D.1223.

D.1224 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Other imputed social contributions</Substitution>

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.

D.123 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers’ social contributions for apprentices</Substitution>

This variable is the sum of contributions actually paid and any imputed contributions for apprentices. Imputed social contributions for apprentices, if any, are usually tiny.

Reference ESA 95: 4.09 (code D.121), 4.10 (code D.122) and 4.12(b)
D.2 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Vocational training costs paid by the employer</Substitution>

These include: expenditure on vocational-training services and facilities (also those for apprentices 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.

Reference ESA 95: Intermediate consumption
D.3 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Other expenditure paid by the employer</Substitution>

This includes in particular:

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. This does not include administrative running costs (office expenses, staff wages, etc.), working clothes provided by the employer.

The Appendix to Annex II provides examples.

Reference ESA 95: Intermediate consumption
D.4 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Taxes paid by the employer</Substitution>

This variable covers all taxes based on the wage and salary bill or on employment. These taxes are regarded as labour costs.

Variable D4 also covers penalty taxes to be paid in some European countries by employers for employing too few handicapped persons, and similar taxes or fees.

Reference ESA 95: 4.23(c) (code D.29)
D.5 <Substitution ChangeId="O001001M002" CommentaryRef="c000002">Subsidies received by the employer</Substitution>

These are all amounts received in the form of subsidies of a general nature 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.

Reference ESA 95: 4.37(a) (code D.39)
Substituted by Commission Regulation (EC) No 1737/2005 of 21 October 2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs (Text with EEA relevance). Substituted by Commission Regulation (EC) No 973/2007 of 20 August 2007 amending certain EC Regulations on specific statistical domains implementing the statistical classification of economic activities NACE Revision 2.
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 compensation of employees (D.1) with wages and salaries in cash or in kind and employers' social contributions, vocational-training costs (D.2), other expenditures (D.3), taxes relating to employment regarded as labour costs (D.4), less any subsidies received (D.5). The costs for persons employed by temporary employment agencies are to be included in the industry of the agency which employs them (</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">
<Substitution ChangeId="O002001M010" CommentaryRef="c000003">NACE Rev. 2, 78,20</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">) and not in the industry of the enterprise for which they actually work.</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">A breakdown at a glance of total labour costs by component is provided by Figures 1 to 3 in Annex I.</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 broken down into:</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">wages and salaries (D.11), mainly consisting of wages and salaries (excluding apprentices) (D.111) and wages and salaries of apprentices (D.112)</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">employers' social contributions (D.12), mainly consisting of employers' actual social contributions (excluding apprentices) (D.121), employers' imputed social contributions (excluding apprentices) (D.122) and employers' social contributions for apprentices (D.123).</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries include bonuses, pay for piecework and shift work, allowances, fees, tips and gratuities, commission and remuneration in kind. They are recorded in the period during which the work is done. However, </Substitution>
<Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">ad hoc</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> bonuses or other exceptional payments (13</Substitution>
<Superior>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> month pay, back-dated pay arrears, etc.) are recorded when they are due to be paid.</Substitution>
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<Substitution ChangeId="O001001M002" CommentaryRef="c000002">A full breakdown of wages and salaries by component is given in Figure 2 in Annex I.</Substitution>
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<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">References ESA 95: 4.03 to 4.07 and 4.12(a) (code D.11); SBS: code 13320 (wages and salaries)</Substitution>
</Strong>
</Text>
</Para>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.111</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries (excluding apprentices)</Substitution>
</Title>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1111/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1111" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1111" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1111</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Direct remuneration, bonuses and allowances</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">A </Substitution>
<Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">bonus</Substitution>
</Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> 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.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">An </Substitution>
<Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">allowance</Substitution>
</Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> is an entitlement granted by the employer to an employee and intended to cover a specific expense, not work-related, incurred by the employee. It is often stipulated in workplace agreements and is normally paid at the time of entitlement.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1111/division/D.11111/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1111/division/D.11111" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1111-division-D.11111" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11111</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Direct remuneration, bonuses and allowances paid in each pay period</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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, bi-annually, annually) or on an </Substitution>
<Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">ad hoc</Substitution>
</Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> basis should not be included here. Payments to employees’ savings schemes should be excluded here and are to be included under D.1112.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Specifically, the variable refers to:</Substitution>
</Text>
</P>
<P>
<UnorderedList Decoration="dash">
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">basic wages and salaries,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">direct remuneration calculated on the basis of time worked, output or piecework and paid to employees for hours worked,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">remuneration and additional payments for overtime, night work, working on Sundays and public holidays, and shift work,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">bonuses and allowances paid regularly at each pay period, such as:</Substitution>
</Text>
</Para>
<UnorderedList Decoration="dash">
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">workplace bonuses for noise, risk, difficult work, shift or continuous work, night work and working on Sundays and public holidays,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">individual performance bonuses, bonuses for output, production, productivity, responsibility, diligence, punctuality; regularly paid length-of-service bonuses; qualifications and special knowledge.</Substitution>
</Text>
</Para>
</ListItem>
</UnorderedList>
</ListItem>
</UnorderedList>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Further examples of pay items which should be included here are given in the Appendix to Annex II.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Variable D.11111 refers to gross amounts before deduction of taxes and social-security contributions payable by employees.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1111/division/D.11112/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1111/division/D.11112" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1111-division-D.11112" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11112</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Direct remuneration, bonuses and allowances not paid in each pay period</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">All payments to employees which are </Substitution>
<Underline>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">not</Substitution>
</Underline>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> paid regularly at each (weekly or monthly) pay period. These include bonuses and allowances paid at fixed periods (e.g. paid monthly where regular payments are weekly, or paid quarterly, bi-annually or annually), and bonuses linked to individual or collective performance. Exceptional payments to employees who leave the enterprise are included here, provided that such payments are </Substitution>
<Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">not</Substitution>
</Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> linked to a collective agreement. 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 D.1223. Payments to employees’ savings schemes are also excluded and covered by D.1112.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Examples of pay items belonging to D.11112 are listed in the Appendix to Annex II.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Variable D.11112 likewise refers to gross amounts before deduction of taxes and social-security contributions payable by employees.</Substitution>
</Text>
</P>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1112/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1112" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1112" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1112</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments to employees' savings schemes</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This refers to sums paid into savings schemes for employees (such as company savings schemes).</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1112/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1112/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1112-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.03(i)</Substitution>
</Strong>
</Text>
</Para>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1113/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1113" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1113" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1113</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments for days not worked</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Remuneration paid for statutory, contractual or voluntarily granted leave and public holidays or other paid days not worked. The Appendix to Annex II provides examples.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1114</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries in kind</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This variable refers to an estimate of the value of all goods and services made available to employees through the enterprise or local unit. 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.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">The Appendix to Annex II gives examples of wages and salaries in kind.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.04, 4.05, 4.06 (code D.11)</Substitution>
</Strong>
</Text>
</Para>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11141/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11141" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114-division-D.11141" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11141</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Company products</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">The net price to the enterprise should be entered, i.e. the cost of 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.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11142/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11142" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114-division-D.11142" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11142</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Staff housing</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This refers to expenditure by the enterprise to assist employees with housing, including: expenditure on housing owned by the enterprise (expenditure on the maintenance and administration of housing, and tax and insurance relating to such housing) and 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), allowances and subsidies granted to employees in connection with their housing, and installation, but excluding removal allowances.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11143/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11143" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114-division-D.11143" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11143</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Company cars</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Company cars, or the cost to the enterprise of company cars supplied to employees for their private use. This 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 or any income derived from their resale.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Estimates should be calculated from information available in the enterprises, such as 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.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11144/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11144" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114-division-D.11144" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11144</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Stock options and share purchase schemes</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 enterprise/local unit to the employee. The forms of compensation covered by D11144 are identical to those covered by the heading </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Equity-settled share-based payment transactions</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> of the International Financial Reporting Standard 2 </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Share-based payment</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">strike price</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">). The costs to the enterprise are equivalent to the product of the amount of shares and the difference between the market price and the </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">strike price</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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) to a favourable </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">strike price</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> 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 </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">strike price</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">. The costs to the enterprise are again equivalent to the product of the amount of shares and the difference between the market price and the </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">strike price</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">. In both labour costs statistics and accounting, the costs are assigned to and distributed over the </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">vesting period</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">, 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.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">An estimate of the variable D.11144 for the reference year could ideally be arrived at with the help of guidelines from International Financial Reporting Standard 2, </Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Share-based payment</Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"></Substitution>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">. If such an estimate is not available, values according to accounting standards or the tax regulation of the Member State can be taken, provided that they cover the equity instruments of D.11144 and refer to the Labour Cost Survey reference period.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 D.11144, but by D.11112.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11145/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.111/division/D.1114/division/D.11145" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.111-division-D.1114-division-D.11145" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.11145</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Other</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This covers in particular indirect benefits chargeable to the employer:</Substitution>
</Text>
</P>
<P>
<UnorderedList Decoration="dash">
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">canteens and meal vouchers,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">cultural, sporting and leisure facilities and services,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">kindergartens and day nurseries,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">staff shops,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">transport costs for journeys between home and the usual place of work,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">payments into trade union funds and the costs of works committees.</Substitution>
</Text>
</Para>
</ListItem>
</UnorderedList>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 D.11145.</Substitution>
</Text>
</P>
</Division>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.112/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.11/division/D.112" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.11-division-D.112" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.112</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Wages and salaries of apprentices</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">See D.11.</Substitution>
</Text>
</P>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.12</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers' social contributions</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This variable refers to an amount equal to the value of the social contributions incurred by employers in order to secure for their employees the entitlement to social benefits. Employers' social contributions may be either actual or imputed.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">A full breakdown of employer’s social contributions by component is provided by Figure 3 in Annex I.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">References ESA 95: 4.08 (code D.12); SBS: code 13330 (social-security costs)</Substitution>
</Strong>
</Text>
</Para>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.121" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.121</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers' actual social contributions (excluding apprentices)</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">These consist of payments made by employers for the benefit of their employees to insurers (social-security funds and private funded schemes such as occupational-pension 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.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Examples are given in the Appendix to Annex II.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.121-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.09 (code D.121) and 4.12(b)</Substitution>
</Strong>
</Text>
</Para>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/division/D.1211/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/division/D.1211" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.121-division-D.1211" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1211</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Statutory social-security contributions</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Contributions paid to social-security institutions payable by the employer and made compulsory by law. The amounts of such contributions must be entered net of any subsidies. They include:</Substitution>
</Text>
</P>
<P>
<UnorderedList Decoration="dash">
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">contributions to insurance schemes for retirement pension, sickness, maternity and disability,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">statutory contributions to unemployment insurance schemes,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">statutory contributions to insurance schemes for occupational accidents and diseases,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">statutory contributions to family allowance schemes,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">all other statutory contributions not mentioned elsewhere.</Substitution>
</Text>
</Para>
</ListItem>
</UnorderedList>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/division/D.1212/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.121/division/D.1212" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.121-division-D.1212" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1212</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Collectively agreed, contractual and voluntary social-security contributions payable by the employer</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">These are all contributions paid by the employer to social-security schemes which are supplementary to those which are compulsory by law. Account should be taken of any tax exemptions which might apply. They include:</Substitution>
</Text>
</P>
<P>
<UnorderedList Decoration="dash">
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">supplementary pension schemes, occupational pension schemes (insured plans, self-administered funds, book reserves or provisions, all other expenditure intended to fund supplementary pension schemes),</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">supplementary sickness insurance schemes,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">supplementary unemployment insurance schemes,</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">all other non-compulsory supplementary social-security schemes not mentioned elsewhere.</Substitution>
</Text>
</Para>
</ListItem>
</UnorderedList>
</P>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.122" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.122</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers’ imputed social contributions (excluding apprentices)</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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 to the observable unfunded social benefits paid.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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. D.122 may be particularly relevant when the employer is a non-market producer (government sector).</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">The amount of D.122 is determined by reference to the employers’ future obligations to provide social benefits. The ideal source for calculating D.122 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 eventual employees' social contributions, as an estimate for D.122.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Variable D.122 includes in particular imputed employers’ social contributions for pensions and health care. It also includes an amount equal in value to the wages and salaries which employers temporarily continue to pay in the event of sickness, maternity, industrial injury, disability, redundancy, etc. of their employees, if that amount can be separated.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Examples are given in the Appendix to Annex II.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.122-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.10 (code D.122) and 4.12(c)</Substitution>
</Strong>
</Text>
</Para>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1221/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1221" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.122-division-D.1221" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1221</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Guaranteed remuneration in the event of sickness</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1222/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1222" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.122-division-D.1222" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1222</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers' imputed social contributions for pensions and health care</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This component of D.122 covers imputed payments to unfunded pension and health care schemes, in particular in the government sector. In some European 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 health-care schemes must be taken into account.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1223/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1223" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.122-division-D.1223" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1223</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments to employees leaving the enterprise</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This component represents sums actually paid to dismissed workers (severance pay and compensation in lieu of notice) if these payments are linked to a collective agreement or if the existence of such a linkage is unknown. Payments not linked to a collective agreement are included in D.11112.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Payments made to employees on retirement, e.g. as part of their pension entitlement, should </Substitution>
<Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">not</Substitution>
</Emphasis>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002"> be included in D.1223.</Substitution>
</Text>
</P>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1224/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.122/division/D.1224" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.122-division-D.1224" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.1224</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Other imputed social contributions</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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.</Substitution>
</Text>
</P>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.123/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.123" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.123" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.123</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Employers’ social contributions for apprentices</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This variable is the sum of contributions actually paid and any imputed contributions for apprentices. Imputed social contributions for apprentices, if any, are usually tiny.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.123/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.1/division/D.12/division/D.123/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.1-division-D.12-division-D.123-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.09 (code D.121), 4.10 (code D.122) and 4.12(b)</Substitution>
</Strong>
</Text>
</Para>
</Division>
</Division>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.2/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.2" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.2" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.2</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Vocational training costs paid by the employer</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">These include: expenditure on vocational-training services and facilities (also those for apprentices 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.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.2/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.2/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.2-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: Intermediate consumption</Substitution>
</Strong>
</Text>
</Para>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.3/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.3" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.3" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.3</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Other expenditure paid by the employer</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This includes in particular:</Substitution>
</Text>
</P>
<P>
<UnorderedList Decoration="dash">
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">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. This does not include administrative running costs (office expenses, staff wages, etc.),</Substitution>
</Text>
</Para>
</ListItem>
<ListItem>
<Para>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">working clothes provided by the employer.</Substitution>
</Text>
</Para>
</ListItem>
</UnorderedList>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">The Appendix to Annex II provides examples.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.3/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.3/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.3-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: Intermediate consumption</Substitution>
</Strong>
</Text>
</Para>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.4/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.4" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.4" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.4</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Taxes paid by the employer</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">This variable covers all taxes based on the wage and salary bill or on employment. These taxes are regarded as labour costs.</Substitution>
</Text>
</P>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Variable D4 also covers penalty taxes to be paid in some European countries by employers for employing too few handicapped persons, and similar taxes or fees.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.4/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.4/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.4-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.23(c) (code D.29)</Substitution>
</Strong>
</Text>
</Para>
</Division>
</Division>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.5/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.5" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.5" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Number>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">D.5</Substitution>
</Number>
<Title>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Subsidies received by the employer</Substitution>
</Title>
<P>
<Text>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">These are all amounts received in the form of subsidies of a general nature 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.</Substitution>
</Text>
</P>
<Division DocumentURI="http://www.legislation.gov.uk/eur/1999/1726/annex/II/division/D/division/D.5/annotation/1/2020-01-31" IdURI="http://www.legislation.gov.uk/id/eur/1999/1726/annex/II/division/D/division/D.5/annotation/1" RestrictEndDate="2020-12-31" id="annex-II-division-D-division-D.5-annotation-1" Type="Annotation" RestrictStartDate="2008-01-01" RestrictExtent="E+W+S+N.I.">
<Para>
<Text>
<Strong>
<Substitution ChangeId="O001001M002" CommentaryRef="c000002">Reference ESA 95: 4.37(a) (code D.39)</Substitution>
</Strong>
</Text>
</Para>
</Division>
</Division>
</Division>
</ScheduleBody>
</Schedule>
</Schedules>
</EURetained>
<Commentaries>
<Commentary Type="F" Source="EU" id="c000002">
<Para>
<Text>
Substituted by
<Citation Class="EuropeanUnionRegulation" Year="2005" Number="1737" URI="http://www.legislation.gov.uk/id/eur/2005/1737" Title="Commission Regulation (EC) No 1737/2005 of 21 October 2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs (Text with EEA relevance)">Commission Regulation (EC) No 1737/2005 of 21 October 2005 amending Regulation (EC) No 1726/1999 as regards the definition and transmission of information on labour costs (Text with EEA relevance)</Citation>
.
</Text>
</Para>
</Commentary>
<Commentary Type="F" Source="EU" id="c000003">
<Para>
<Text>
Substituted by
<Citation Class="EuropeanUnionRegulation" Year="2007" Number="973" URI="http://www.legislation.gov.uk/id/eur/2007/973" Title="Commission Regulation (EC) No 973/2007 of 20 August 2007 amending certain EC Regulations on specific statistical domains implementing the statistical classification of economic activities NACE Revision 2">Commission Regulation (EC) No 973/2007 of 20 August 2007 amending certain EC Regulations on specific statistical domains implementing the statistical classification of economic activities NACE Revision 2</Citation>
.
</Text>
</Para>
</Commentary>
</Commentaries>
</Legislation>