Where does an hour of work cost the most in the EU?

In 2018, employers in the German manufacturing industry and economic services paid an average of 35 euros per hour worked. That makes labour costs in Germany the sixth highest in Europe. These figures come from a comparison of the 28 European Union member states, published last week by Germany’s Federal Statistical Office.

Highest labour costs in Denmark; Germany is 6th

The ranking compares the cost of an hour’s work when all contributions such as social security contributions are included. The highest labour costs are incurred in Denmark, where employers pay an average of 44,70 euros per hour worked.

The lowest rate - 5,30 euros per hour - is to be found in Bulgaria. In Germany, the hourly rate is 32 percent higher than the EU average of 26,60 euros per hour.

Non-wage labour costs below average in Germany

However, the labour cost comprises of gross services and ancillary labour costs. In 2018, employers in Germany paid 27 euros per 100 euros in non-wage labour costs (i.e. taxes and insurance). This is well below the EU average of 30 euros and suggests that a significant part of the higher labour costs in Germany can be explained by higher salaries.

The highest non-wage labour costs were paid in Sweden (48 euros per 100 euros), and the lowest in Malta (eight euros per 100 euros).

Hourly labour costs in the EU in 2018

Handily, Statista has put the full ranking into an easy-to-digest infographic, which you can see below.