Labor Costs

Chart: Hourly Labor Costs in an EU Wide Comparison


German employers in the private sector (industry and private service sector) have to expend  36.70 euros for every working hour completed. The labor costs are higher in seven countries: Between 38.00 euros and 46.90 euros have to be spent per hour in Denmark, Luxemburg, Belgium, Sweden, France and Austria. The average amount in the EU 27 region is 28.00 euros. The lowest figures are exhibited by Romania and Bulgaria with labor costs of 7.70 euros and/or 6.40 euros per hour respectively.

In Saxony’s private sector, 29.50 euros need to be spent for every working hour completed. 

(The labor costs include, in addition to the gross wage, also the employer’s shares in social security contributions, expenditures for general and continued education and training as well as employment taxes which are considered to be labor costs.)


Chart: Gross Wages per Full-Time Employee by Selected Industrial Sectors

Source: Statistical Office of the Federal State of Saxony


In 2020, the compensation per full-time employed person (=labor costs) in Saxony in the manufacturing industries and service sectors amounted to 42,728 euros. The highest compensations in 2020 were paid in the sectors "Financial and insurance activities" (66,433 euros/employee) and "Art, Entertainment and Recreation" (65,906 euros/employee). The compensation in the processing trade sector amounted to 39,757 euros/employee.

All told, the compensations per employee increased on average by 1.3 percent, in 2020 compared to the previous year.

The compensation of employees consists of wages and salaries in cash or in kind and of employer's actual and imputed social contributions.

Chart: Labor costs 2020: Average Gross Annual Earnings per employee in Germany by Federal States

Average Gross Annual Earnings (=labor costs) BY FEDERAL STATE

In 2020, the average cross annual earnings per employee (=labor costs) in Saxony amounted to an average of 42,728 euros.

On a German national average, the compensation per employee amounted to 52,464 euros.

The compensation of employees consists of wages and salaries in cash or in kind and of employer's actual and imputed social contributions.

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Dr. Uwe Lienig
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Phone: +49 (351) 2138-201 Fax: +49 (351) 2138-109

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Dr. Michael Süß

Vice President Engineering, Webfleet Solutions

»The Leipzig site, which emerged from the acquisition of the datafactory AG corporation in 2005; later Tom Tom Telematics, is the technological center of Webfleet Solutions. The primary reason why we selected this location as our corporate site was the favorable environment for business setups in Leipzig.«

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