Luxembourg Labour Cost Remains Highest In The EU

Reports available to GlobalCurrent24.com suggests that the Luxembourg labour cost remains highest in the EU.

Despite massive increases in other countries, the Grand Duchy remains the market leader, paying more than 50 euros per hour.

Luxembourg’s average labour costs of more than €50 per hour made it the most expensive country for employees in 2023, according to the German Federal Statistical Office.

The comparison of labour costs revealed that salaries and non-wage labour costs in the EU are far from uniform, particularly when comparing the two extremes, Bulgaria and Luxembourg. In 2023, labour costs per hour worked in Bulgaria were €9.30, whereas in Luxembourg they were €53.90, nearly six times higher.

According to the bureau, the Grand Duchy had the EU’s highest labour costs in the manufacturing and service sectors last year. Denmark came in second, with an hourly rate of €48.10.

As in previous years, labor was most affordable in less developed EU economies such as Bulgaria (€9.30) and Romania (€11.00).

However, as industrialisation progresses and production moves away from high-wage regions, labour costs in Eastern European countries rise as well. In 2023, Hungary (+19.9%), Romania (+16.1%), and Poland (+15.9%) experienced the highest rates of growth. Sweden was the only country with falling labour costs.

According to the statistics office, these labor costs include gross earnings as well as non-wage labor costs. Gross earnings include remuneration for hours worked, special payments, capital-forming benefits, remuneration for days off (including holidays and public holidays), and in-kind benefits.

Non-wage labor costs include employers’ social security contributions (including sick pay), the cost of vocational and further training, as well as other expenses and taxes borne by the employer. Wage subsidies reduce labour costs.

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