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  39.50 euros for every working hour completed. The labor costs are higher in seven countries: Between 40.10 euros and 50.70 euros have to be spent per hour in Luxemburg, Denmark, Belgium, France, the Netherlands and Sweden. The average amount in the EU 27 region is 28.60 euros. The lowest figures are exhibited by Romania and Bulgaria with labor costs of 9.50 euros and/or 8.20 euros per hour respectively.

In Saxony’s private sector, 31.39 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: Average Gross Annual Earnings per Full-Time Employee by Selected Industrial Sectors

Source: Working Group for National Accounts of the German Federal States

Average Gross Annual Earnings BY INDUSTRIAL SECTOR

In 2021, the average gross annual earnings per employee (domestic) in Saxony in the manufacturing industries amounted to 37,076 euros and in the service sectors to 32,552 euros. The highest compensations in 2021 were paid in the service sectors "Financial and insurance activities" (49,792 euros/employee) and "Information and Communication" (49,598 euros/employee). The earningsin the processing trade sector amounted to 37,274 euros/employee.

All told, the gross annual earnings per employee increased on average by 3.6 percent in 2021, compared to the previous year.


Chart: Labor costs 2022: Average Gross Annual Earnings per employee in Germany by Federal States

Average Gross Annual Earnings BY FEDERAL STATE

In 2022, the average cross annual earnings per employee (domestic) in Saxony amounted to an average of 35,436 euros.

On a German national average, the compensation per employee amounted to 39,985 euros.


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Andreas Lippert
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Phone: +49 (351) 2138-211 Fax: +49 (351) 2138-219

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