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, 2017

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 33.40 euros for every working hour completed. The labor costs are higher in six countries: Between 33.20 euros and 42.70 euros have to be spent per hour in Denmark, Belgium, Sweden, Luxemburg, France, and Finland. The average amount in the EU 28 region is 25.70 euros. The lowest figures are exhibited by Romania and Bulgaria with labor costs of 5.40 euros and/or 4.40 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 Full-Time Employee by Selected Industrial Sectors

Source: Statistical Office of the Federal State of Saxony

GROSS WAGES PER EMPLOYEE BY INDUSTRIAL SECTOR

In 2016, Saxony’s full-time employees earned an average gross, i.e. before deducting income tax and social security contributions, income of 38,522 euros. The highest wages of the processing trade sector in 2016 were paid for  the "Manuf. of motor vehicles, trailers, semi-trailers" (47,987 euros/employee) and for the "Manufacture of computer, electronic and optical products" (46,930 euros/employee). In the service sector employees in the areas "Financial and insurance activities" (57,394 euros / employee) and "Education" (53,821 euros / employee).

All told, the gross wages increased on average by 3.6 percent, in 2015 compared to the previous year.

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 2016, every full-time employee in Saxony earned an average gross income of 38,522 euros and, thus, 3.6 percent more than in the previous year.

On a German national average, the annual income amounted to 48,936 euros per employee, which was an increase of 2.5 percent when compared to 2015.

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Dr. Peter Homilius
Strategy, Industry Sectors, Marketing
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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