That’s how much an hour of work costs in Germany

Labor costs are significantly higher in Germany than elsewhere in the European Union. The Federal Republic does not even rank among the top spots.

Payroll with money

Dhe labor costs in Germany are still almost a third above the EU average. With an average of 35 euros per hour worked, employers in the private sector paid 32 percent more than the 26.60 euros that the Federal Statistical Office calculated as the average for the 28 states of the European Union.

However, Germany is not the most expensive place for companies, as the Wiesbaden authority announced on Monday: Europe’s largest economy ranks sixth within the EU, as it did in 2017.

Denmark continued to have the highest hourly labor costs at EUR 44.70, followed by Luxembourg (EUR 40.30) and Belgium (EUR 40.00). In Sweden (39.30 euros) and France (36.50 euros) labor costs were also higher in 2018 than in Germany. The labor factor was the cheapest in Bulgaria at 5.30 euros per hour worked.

The statistics cover jobs in industry and in economic services, excluding the public sector. In industry in Germany, one working hour cost an average of 40 euros – 48 percent more than the EU average (27 euros). Restricted to this economic sector, Germany was in fourth place.

Labor costs are made up of gross earnings and ancillary wage costs, which include, among other things, the employer’s social security contributions. Last year, employers in the German private sector paid an additional 27 euros for ancillary wage costs for every 100 euros gross earnings. According to the information, the non-wage costs were below the EU average of 30 euros.