External content not available
Your privacy settings prevent the loading and display of all external content (e.g. graphics or tables) and social networks (e.g. Youtube, Twitter, Facebook, Instagram etc.). To view, please activate the settings for social networks and external content in the privacy settings .
Labor costs in industry in Germany are even higher in comparison
In Germany, labor costs in industry are higher than in services. In the manufacturing sector, an hour worked in 2022 cost an average of EUR 44.00. Here, the labor costs in Germany are in fourth place in the EU. A working hour in German industry was 44 percent more expensive than the EU average.
In services, Germany was in sixth place in the EU with labor costs of EUR 38.00 per hour and 26 percent above the EU average.
read too
In the past ten years, hourly labor costs in the European Union have risen by 25 percent, or a good six euros. However, there were very big differences and many countries were catching up. Labor costs increased the most in Bulgaria (+141.2 percent), Romania (+131.7), Lithuania (+122.0) and Latvia (+103.3). At the lower end of the scale is Greece, the only country where labor costs in 2022 were even 7.6 percent lower than ten years ago. This reflects the deep cuts of the financial crisis in Greece. There were small increases in Italy with 6.1 percent and Sweden with 7.5 percent. In Germany, the increase in labor costs over a ten-year period was 29.5 percent, more than the EU average.
Social security contributions increase labor costs
Labor costs include the gross earnings of employees and non-wage labor costs of employers. Gross earnings include wages and salaries, special payments, capital-forming benefits, vacation pay and benefits in kind. The ancillary wage costs include the employer’s social security contributions, including continued payment of wages in the event of illness and the costs of training and further education.
In an international comparison, labor costs in Germany are also driven by high ancillary costs. According to new figures from the industrialized countries’ organization OECD, social security contributions in Germany total 33.5 percent. They are borne proportionately by the employees and the company. In this area, too, Germany is well above the OECD average of 21.6 percent. Only in Austria, the Czech Republic and France do the social contributions of employees and employers also account for more than a third of labor costs.
read too
An hour’s work in Germany costs companies an average of 39.50 euros.
In a comparison of the EU countries, Germany is in seventh place in terms of labor costs and around 30 percent above the average of 30.50 euros.
This is not only due to the wages and salaries, but also to the comparatively high social security contributions in Germany.
Germany is a rich country. The high level of prosperity enables high wages and salaries in international comparison. At the same time, this means high labor costs for companies, especially since they also bear part of the social security contributions. Overall, an hour’s work in Germany last year cost an average of 39.50 euros, calculated Federal Statistical Office. That was around 30 percent more than the average for all EU countries. In the face of – often international – competition, companies have to earn these costs again and again.
In a comparison of labor costs, Germany remains in seventh place in the EU. Labor costs are highest in small, wealthy Luxembourg at 50.70 euros per hour. Companies in the EU also have higher labor costs than Germany in Denmark, Belgium, France, the Netherlands and Sweden. Overall, there is a north-south and a west-east divide in the EU. Hungary, Romania and Bulgaria have the lowest labor costs.
“>”>External content not available
Your privacy settings prevent the loading and display of all external content (e.g. graphics or tables) and social networks (e.g. Youtube, Twitter, Facebook, Instagram etc.). To view, please activate the settings for social networks and external content in the privacy settings .
Labor costs in industry in Germany are even higher in comparison
In Germany, labor costs in industry are higher than in services. In the manufacturing sector, an hour worked in 2022 cost an average of EUR 44.00. Here, the labor costs in Germany are in fourth place in the EU. A working hour in German industry was 44 percent more expensive than the EU average.
In services, Germany was in sixth place in the EU with labor costs of EUR 38.00 per hour and 26 percent above the EU average.
read too
In the past ten years, hourly labor costs in the European Union have risen by 25 percent, or a good six euros. However, there were very big differences and many countries were catching up. Labor costs increased the most in Bulgaria (+141.2 percent), Romania (+131.7), Lithuania (+122.0) and Latvia (+103.3). At the lower end of the scale is Greece, the only country where labor costs in 2022 were even 7.6 percent lower than ten years ago. This reflects the deep cuts of the financial crisis in Greece. There were small increases in Italy with 6.1 percent and Sweden with 7.5 percent. In Germany, the increase in labor costs over a ten-year period was 29.5 percent, more than the EU average.
Social security contributions increase labor costs
Labor costs include the gross earnings of employees and non-wage labor costs of employers. Gross earnings include wages and salaries, special payments, capital-forming benefits, vacation pay and benefits in kind. The ancillary wage costs include the employer’s social security contributions, including continued payment of wages in the event of illness and the costs of training and further education.
In an international comparison, labor costs in Germany are also driven by high ancillary costs. According to new figures from the industrialized countries’ organization OECD, social security contributions in Germany total 33.5 percent. They are borne proportionately by the employees and the company. In this area, too, Germany is well above the OECD average of 21.6 percent. Only in Austria, the Czech Republic and France do the social contributions of employees and employers also account for more than a third of labor costs.
read too