Experimental statistics

The purpose of experimental statistics

The purpose of experimental statistics is to supplement and expand the information content of the change in average earnings published as official statistics by showing the distribution behind the change in the average, too, and thus to shed light on the diversity and uneven distribution of the extent of change in earnings. All of this provides users with additional information for a deeper understanding of earnings processes.

In its official statistical releases, HCSO traditionally publishes the so-called overall average index as an indicator of the change in average earnings, which expresses the percentage change compared to the same period of the previous year. The index of change in average earnings thus reflects the combined effect of the shift in the employment rate between two periods and the actual change in earnings. The experimental statistics showing the distribution of earnings changes shades this by focusing on actual individual earnings changes, while also providing information on their distribution.

The data allow a more detailed and accurate analysis of the effects of wage-related legislative changes, governmental wage measures and the effects of the employers’ waging practices on market conditions, compared to the available information and to the data published as official statistics. It also contributes to a more targeted analysis of changes affecting workers and their different groups in terms of their earnings situation.

The experimental nature of statistics

The experimental nature of the statistics on the distribution of earnings changes is due to the fact that there is no internationally agreed recommendation/practice for the method of calculation; in fact, various ways of calculating them are possible. The reference unit of the statistics differs from the one used in official earnings statistics. In this experimental statistics the earnings data have been examined for each individual, whereas the basic unit of official earnings statistics is the job. The experimental character is also strengthened by the fact that the population under study is not comprehensive and is not identical to the earnings data published in official statistics, as only those who both had a full-time job in the reference period and in the base period are included in the observation (due to the longitudinal nature of the concept of accounting). The employees covered by the statistics represent approximately 83.3% of the full-time employees. User feedback will also be used to finalise the methodology of accounting.

The scope of statistics

• The target indicator

Change in earnings: The change in the private individual’s accounted average monthly gross (net) earnings in the reference period, in their full-time job(s), compared to the average monthly gross (net) earnings in the same period of the previous year (base year) in their full-time job(s), regardless of whether or not the job or employer changed during the period under examination.

The change is calculated on total earnings, i.e. the indicator simultaneously expresses the combined change in the basic wage and direct remuneration (the part of earnings directly linked to the employee’s performance and the hours worked, based on the employee's basic wage or the wage form used) and the other elements of earnings (additional payments, payments for days not worked, premium, bonuses, 13th month and additional month salary). There is no information on these elements in the administrative data source used.

The change is calculated for the total salary, i.e. the indicator simultaneously expresses the basic salary and the standard salary (the part of the salary that depends directly on the employee's performance and the working hours, based on the employee's basic salary and the wage form used) and the other salary elements (salary allowances, additional pay, bonus, bonus, 13th month and additional monthly pay) combined change. There is no separate information on the individual earnings elements in the administrative data source used.

• Breakdowns available for the target indicator

• Employer’s form of business (GFO’21)
• Employer’s division and class (NACE’08)
• Employer’s geographical location (county)
• Employee’s sex
• Employee’s age
• Job classification by occupation (FEOR’08)

Due to the longitudinal nature of the concept of accounting, the criteria listed here are recorded with the value corresponding to the last month of the reference quarter of the year, whether or not it has changed compared to the same period of the previous year.

Reference scope of data

Total number of private individuals with full-time (declared) jobs at Hungarian employers (enterprises with employees, budgetary institutions and non-profit institutions) in both the reference and base periods.

Source of data

The monthly earnings and headcount statistics data from the institutional labour statistics production system of HCSO, based on tax return 08 received from the National Tax and Customs Administration of Hungary (NAV) and on the records of the Hungarian State Treasury.

Timeliness and frequency of publication

The data are published quarterly, in the third month after the reference quarter. In the publications, we use cumulative quarterly counting from the beginning of the year, given that for some employers the monthly additional payments do not necessarily occur in the same month from one year to the next.