Labor costs in Germany: sixth highest in the EU

Labor costs in Germany: sixth highest in the EU

In 2023, companies in Germany paid an average of 41.30 euros for an hour worked, as reported by the Federal Statistical Office (Destatis). These costs were above the EU average of 31.80 euros, which corresponds to an increase of around 30%. Compared to other EU countries, Germany ranked sixth in terms of labor costs, while Luxembourg recorded the highest labor costs at 53.90 euros and Bulgaria recorded the lowest at 9.30 euros.

The costs per working hour differed depending on the industry. In the manufacturing sector, at an average of 46.00 euros, they were significantly higher than the EU average (32.00 euros), while in market services they were around 25% above the EU average at 39.80 euros. At +4.8% in 2023, the increase in labor costs in Germany was lower than the EU average of +5.3%.

There were strong differences in labor costs around the world. Countries such as Luxembourg, Denmark and Belgium paid the most, while Hungary, Romania and Bulgaria recorded the lowest costs. The percentage increase in labor costs was particularly high in Hungary, Romania and Poland, while Sweden actually recorded a decrease. With an increase of 4.8%, Germany was below the EU average.

Labor costs in Germany are made up of gross earnings and additional wage costs, whereby Germany takes trainees into account in both labor costs and working hours, in contrast to the EU definition. This data allows for an international comparison of labor costs and provides insights into the country's economic situation in 2023.