In this dataset, almost all OECD countries compile their data according to 2008 System of National Account (SNA).
The link to the file "ANA_changes.xls" is available for users to provide more information on where OECD countries and non member countries stand regarding the change over the 2008 SNA.
The readers' guide gives general information on the dataset and withheld criteria for this dataset.
Compensation of employees reflects the total remuneration in cash or in kind paid to employees and comprises gross wages and salaries and the value of social contributions paid by employers. They typically form the largest part of value added. Combined with estimates of labour input they provide the basis for a number of important statistics including unit labour costs and average earnings; which play an important role in many countries in monetary policy and cross country comparisons of labour costs.
The 1993 SNA stated that social contributions by employers should reflect the amounts actually paid. With the implementation of the 2008 SNA, the employers' contribution reflects the net present value (actuarial) of the pension entitlement that the employee has earned in the period in question. Therefore, the new recording of pensions entitlements has an impact on the level of contributions paid by employers and thus on Compensation of employees. See annex B for more information.
Definition
Compensation of employees is made up of two components:
Compensation of employees is not payable in respect of unpaid work undertaken voluntarily, including the work done by members of a household within an unincorporated enterprise owned by the same household. Compensation of employees excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax, fringe benefits tax).
It is important to note that compensation of employees does not represent the entire costs of labour within production. Mixed income, which reflects the income paid to the owner(s) or members of the same household who contribute unpaid labour inputs in unincorporated enterprises owned by households, also contains a labour component.
Comparability
Comparability is generally very good across all countries. The presented tables and figures showing breakdowns by activities are re-based on the recently revised classification system (ISIC Rev. 4). However, the following countries report their data according to ISIC Rev. 3: India, Indonesia, Russian Federation and South Africa for non-OECD Member economies. For more information see reader's guide "industrial classification". Some care should be taken in interpreting labour costs by activity however, especially in a cross-country context. In some countries, and notably in some sectors, the shares of self-employed in the labour force may be significant and, so, differences in the shares of compensation of employees across countries may reflect institutional differences, for example, tax incentives to be self-employed or otherwise. This can also have implications in a temporal context. For example, systematic declines in the contribution of compensation of employees to value added may reflect a move by individuals to become self-employed rather than a decline in the share of labour overall; this can be both through push and pull mechanisms. For example, squeezes on wages and salaries and social benefits (push) or tax incentives (pull).
Compensation of employees reflects the total remuneration in cash or in kind paid to employees and comprises gross wages and salaries and the value of social contributions paid by employers. They typically form the largest part of value added. Combined with estimates of labour input they provide the basis for a number of important statistics including unit labour costs and average earnings; which play an important role in many countries in monetary policy and cross country comparisons of labour costs.
The 1993 SNA stated that social contributions by employers should reflect the amounts actually paid. With the implementation of the 2008 SNA, the employers' contribution reflects the net present value (actuarial) of the pension entitlement that the employee has earned in the period in question. Therefore, the new recording of pensions entitlements has an impact on the level of contributions paid by employers and thus on Compensation of employees. See annex B for more information.
Definition
Compensation of employees is made up of two components:
Compensation of employees is not payable in respect of unpaid work undertaken voluntarily, including the work done by members of a household within an unincorporated enterprise owned by the same household. Compensation of employees excludes any taxes payable by the employer on the wage and salary bill (e.g. payroll tax, fringe benefits tax).
It is important to note that compensation of employees does not represent the entire costs of labour within production. Mixed income, which reflects the income paid to the owner(s) or members of the same household who contribute unpaid labour inputs in unincorporated enterprises owned by households, also contains a labour component.
Comparability
Comparability is generally very good across all countries. The presented tables and figures showing breakdowns by activities are re-based on the recently revised classification system (ISIC Rev. 4). However, the following countries report their data according to ISIC Rev. 3: India, Indonesia, Russian Federation and South Africa for non-OECD Member economies. For more information see reader's guide "industrial classification". Some care should be taken in interpreting labour costs by activity however, especially in a cross-country context. In some countries, and notably in some sectors, the shares of self-employed in the labour force may be significant and, so, differences in the shares of compensation of employees across countries may reflect institutional differences, for example, tax incentives to be self-employed or otherwise. This can also have implications in a temporal context. For example, systematic declines in the contribution of compensation of employees to value added may reflect a move by individuals to become self-employed rather than a decline in the share of labour overall; this can be both through push and pull mechanisms. For example, squeezes on wages and salaries and social benefits (push) or tax incentives (pull).