In 2024, average hourly labour costs rose in both the EU27 (+5% to €24.70) and the eurozone (+4.5% to €25.50). In Luxembourg, the country with the highest hourly labour costs, the increase was 2.1% over the year. In our immediate neighbours, the cost of labour is also at the top end of the range: €48.2 in Belgium (+2.4%), €43.70 in France (+3%) and €43.40 in Germany (+5%).

Low non-wage costs in Luxembourg

The average hourly cost is the sum of wage costs and non-wage costs, the latter including social security contributions in particular. In Luxembourg, non-wage costs account for 12.4%. The average in the EU is 24.7%, and in the eurozone 25.5%. This share has risen by 5% over one year in the EU and by 4.5% in the eurozone. By way of comparison, this component rose by 2.1% in the grand duchy.

At 12.4%, Luxembourg is not in the pack, but comes behind Romania (4.8%), Lithuania (5.4%), Malta (5.8%) and Croatia (11.7%). In 2024, non-wage labour costs were highest in France (32.2% of total labour costs) and Sweden (31.6%).

Construction, the lowest-paying sector

Construction has the lowest hourly costs, at €30 in the EU and €33.4 in the eurozone. And it is in industry that they are highest, at €39.80 in the euro zone and €33.90 in the EU respectively.

In the grand duchy, it is in the services sector that the average hourly cost is highest (€60.10). This is followed by the non-market economy (€55), industry (€48.10) and construction (€35.80).

This article was originally published in .