Labor Costs

Chart: Hourly Labor Costs in an EU Wide Comparison

Source: Source: Calcualtions of the German Federal Statistical Office (Destatis) based on statistics of Eurostat and the Statistical Office of the Federal State of Saxony, 2016

HOURLY LABOR COSTS IN AN EU WIDE COMPARISON – SAXONY SMACK IN THE MIDDLE

German employers in the private sector (industry and private service sector) have to expend about 32.70 euros for every working hour completed. The labor costs are higher in seven countries: Between 33.20 euros and 42.70 euros have to be spent per hour in Denmark, Belgium, Sweden, Luxemburg, France, Finland, and the Netherlands. The average amount in the EU 28 region is 25.90 euros. The lowest figures are exhibited by Romania and Bulgaria with labor costs of 5.00 euros and/or 4.10 euros per hour respectively.

In Saxony’s private sector, 24.56 euros need to be spent for every working hour completed. For the manufacturing trade (industry), it is 24.36 euros; and for the service sector, it is 24.73 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 Employee by Industrial Sector

Source: Statistical Office of the Federal State of Saxony

GROSS WAGES PER EMPLOYEE BY INDUSTRIAL SECTOR

In 2015, Saxony’s employees earned an average gross, i.e. before deducting income tax and social security contributions, income of 26,907 euros. The highest wages in 2015 were paid in the manufacturing industry (31,453 euros/employee) and in the public and other service providers sector (28,436 euros/employee).

All told, the gross wages increased on average by 1,074 euros, which translates into 4.2 percent, in 2015 compared to the previous year. When it comes to individual branches, Saxony’s construction industry reported the largest absolute increase amounting to 1,613 euros when compared to 2014. It was followed by the service industry, in particular, the property and housing sector as well as the financial and corporate service providers with an increase of 1,369 euros as well as the trade, transport, hotel & restaurant, and information/communication sector with a plus of 1,203 euros. The per capita incomes in the other economic sectors also increased when compared to the previous year, but their respective growth rates remained significantly below the above mentioned values.

Chart: Gross Wages and Salaries per Employee by Federal State

Source: Statistical Office of the Federal State of Saxony

GROSS WAGES AND SALARIES PER EMPLOYEE BY FEDERAL STATE

In 2015, every employee in Saxony earned an average gross income of 26,907 euros and, thus, 1,074 euros or 4.2 percent more than in the previous year. On a German national average, the annual income amounted to 32,525 euros per employee, which was an increase of 910 euros or 2.9 percent when compared to 2014.

The total amount of gross wages and gross salaries paid to all employees having their workplace in the Federal State of Saxony amounted to 48.4 billion euros.

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Phone: +49 (351) 2138-201 Fax: +49 (351) 2138-109

We support Saxony.

Claus Bolza-Schünemann

President, Koenig & Bauer AG

"Over the years, KBA-Sheetfed in Radebeul has become the largest corporate site of the KBA Group. Excellent specialists, an environment well worth living in as well as a wide range of cultural activities contribute towards the success of our Saxon production plant."

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