

Non-wage costs include the employers’ social contributions plus employment taxes regarded as labour costs less subsidies intended to refund part or all of employer’s cost of direct remuneration. Wage and salary costs include direct remunerations, bonuses, and allowances paid by an employer in cash or in kind to an employee in return for work done, payments to employees saving schemes, payments for days not worked and remunerations in kind such as food, drink, fuel, company cars, etc. They do include vocational training costs or other expenditures such as recruitment costs, spending on working clothes, etc. They cover wage and non-wage costs less subsidies. Total Labour Costs refer to the total expenditure borne by employers in order to employ staff.Eurostat website section dedicated to labour cost statistics.Eurostat Statistics Explained article on hourly labour costs.Those schemes were generally recorded as subsidies (or tax allowances) with a negative sign in the non-wage component of labour costs. They mainly consisted of short-term work arrangements and temporary lay-offs fully or partly compensated by government. In 2021, most Member States extended the validity of support schemes introduced in 2020 to alleviate the impact of the COVID-19 pandemics on enterprises and employees. They increased least in Sweden and Croatia (+3.0% each).


The largest increases were recorded in Lithuania (+12.5%), Estonia (+6.5%), Cyprus and Slovenia (+6.2% each) as well as Latvia (+6.1%).įor Member States outside the euro area, the hourly labour costs expressed in national currency increased in 2021 in all countries, with the largest increases recorded in Bulgaria (+9.1%), Poland (+8.2%) and Hungary (+7.3%). Within the euro area, hourly labour costs increased in all Member States except Italy (-1.6%) and Spain (-0.3%). In 2021, compared to 2020, hourly labour costs at whole economy level expressed in € rose by 1.7% in the EU and by 1.2% in the euro area. Hourly labour costs increased most in Lithuania The lowest shares of non-wage costs were recorded in Lithuania (3.7%), Romania (4.9%) and Ireland (8.7%) and the highest in Sweden (32.0%), France (31.9%) and Italy (28.3%). The share of non-wage costs in total labour costs for the whole economy was 24.6% in the EU and 25.1% in the euro area. The two main components of labour costs are wages & salaries and non-wage costs (e.g. In the mainly non-business economy (excluding public administration), they were €30.3 and €33.6 respectively. In services, hourly labour costs were €28.8 in the EU and €31.6 in the euro area. In construction, they were €26.0 and €29.3 respectively. Hourly labour costs in industry were €29.1 in the EU and €35.1 in the euro area. The average hourly labour costs mask significant gaps between EU Member States, with the lowest hourly labour costs recorded in Bulgaria (€7.0) and Romania (€8.5), and the highest in Denmark (€46.9), Luxembourg (€43.0) and Belgium (€41.6). This article presents only a handful of findings from the more detailed Statistics Explained article. These estimates come from data on labour costs levels published by Eurostat today. In 2021, average hourly labour costs in the whole economy (see methodological note) were estimated to be €29.1 in the EU and €32.8 in the euro area, up compared with €28.6 and €32.4, respectively, in 2020.
