Labour Cost Index

The labour cost index (LCI) is defined as the Laspeyres index of labour cost per hour worked, chain linked annually and based upon a fixed structure of economic activity at NACE section level. The labour costs are the total quarterly costs incurred by the employer in the employment of personnel. Labour cost indices are produced individually for the following categories;

(i) Total labour cost (LCI_TOT)
(ii) Wages and salaries (LCI_WAG)
(iii) Employers social contributions

The index is calculated every calendar quarter and is computed through the utilization of internal data available from National Accounts Unit and the Labour Force Survey (LFS) in order to lessen the response burden on potential responding units.

The figures for total labour cost, wages and salaries, social security contributions and employment are compiled from national accounts data. Figures for actual hours worked by employees are estimated using employment figures available from the National Accounts Unit and weekly average actual hours worked from LFS. Mean weekly actual hours worked by employees for each NACE division are retrieved from the LFS and these figures are multiplied by the respective figures available from the National Accounts Unit.


Contact Information: 

Ms Joslyn Magro Cuschieri
Head of Unit​
2599 7662