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  35.90 euros for every working hour completed. The labor costs are higher in six countries: Between 36.00 euros and 46.30 euros have to be spent per hour in Denmark, Luxemburg, Belgium, Sweden, France, and Austria . The average amount in the EU 27 region is 27.40 euros. The lowest figures are exhibited by Romania and Bulgaria with labor costs of 7.30 euros and/or 6.00 euros per hour respectively.

In Saxony’s private sector, 27.79 euros need to be spent for every working hour completed. For the manufacturing trade (industry), it is 28.80 euros; and for the service sector, it is 27.24 euros per working hour.

(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 2019, the compensation per full-time employed person (=labor costs) in Saxony in the manufacturing industries and service sectors amounted to 42,183 euros. The highest compensations in 2018 were paid in the sectors "Financial and insurance activities" (64,678 euros/employee) and "Research and Development" (60,931 euros/employee). The compensation in the processing trade sector amounted to 40,749 euros/employee.

All told, the compensations per employee increased on average by 2.4 percent, in 2019 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 2019 - Compensation per employee in Germany by Federal States

compensation per employee (=labor costs) BY FEDERAL STATE

In 2019, the compensation per employee (=labor costs) in Saxony amounted to an average of 38,209 euros.

On a German national average, the compensation per employee amounted to 44,964 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. Peter Homilius
Strategy, Industry Sectors, Marketing
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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