In 2016, labour costs in Luxembourg were higher than in Germany, but lower than in Belgium. Jessica Theis

In 2016, labour costs in Luxembourg were higher than in Germany, but lower than in Belgium. Jessica Theis

In 2016, average hourly labour costs in the whole economy (excluding agriculture and public administration) were estimated to be €25.4 in the EU and €29.8 in the euro area.

However, this average masks significant gaps between EU member states, with the lowest hourly labour costs recorded in Bulgaria (€4.4), Romania (€5.5), Lithuania (€7.3), Latvia (€7.5), Hungary (€8.3) and Poland (€8.6), and the highest in Denmark (€42.0), Belgium (€39.2), Sweden (€38.0).

Luxembourg ranks 4th (€36.6), just ahead of France (€35.6).

Labour costs are made up of wages and salaries and non-wage costs such as employers’ social insurance contributions. The share of non-wage costs in the whole economy was 23.9% in the EU and 26.0% in the euro area, ranging from 6.6% in Malta to 33.2% in France, according to the EU statistics agency.

In terms of economic activity in Luxembourg, labour costs are lowest in construction (€25.2), industry (€31.8), business economy (€36.5), mainly non-business, excluding public administration (€37.4) and they are highest in services (€39.7).