- Leaders:Luxembourg (49.7 euros per hour), Iceland (47.0 euros), Norway (45.8 euros), Denmark (44.7 euros), Ireland (36.6 euros), the Netherlands (36.3 euros), Germany (34.5 euros).
- Outsiders:Greece (14.6 euros), Slovakia (14.2 euros), Hungary (13 euros), Latvia (12.9 euros), Romania (12.9 euros) and Bulgaria (10.5 euros).
However, at the same time, Eastern Europe shows explosive growth in net wages, while in Western and Northern Europe the growth is minimal.
Salary growth (2021-2025):
- Bulgaria: 69.4% growth
- Poland: 66% growth
- Romania: 61.3% growth
- Croatia, Lithuania, Hungary: growth of more than 50%.
At the same time:
- Norway (5.5%), Sweden (6.1%), Italy (10.6%).
- Germany, France and Spain also showed growth below the EU average (20%).
Taxes
In some countries, almost a third of an employer's expenses are spent not on salaries, but on social benefits, while in others these expenses are minimal.
For companies with 10+ employees, the total cost of labor is 35 euros/hour (38 euros in the eurozone). A quarter of this amount is non-salary related expenses (taxes, social contributions).
- The highest expenses for taxes and social contributions:France (32%), Sweden (32%), Slovakia (29%), Italy (28.1%), Austria (27.1%), Spain(26.2%).
- Minimum expenses:Romania (4.8%), Lithuania (5.5%), Malta (5.8%).
In Spain and Italy, labor taxes are higher than the EU average, and net hourly wages are lower.
Conclusions
The gap between countries in total labor costs (salary + taxes) is huge - from 57 euros per hour in Luxembourg to 12 euros in Bulgaria.
The highest total costs (salary + social benefits):
- Luxembourg:57 euros/hour
- Denmark: 52 euro/hour.
- Netherlands: 48 euros/hour.
Lowest total cost:
- Bulgaria:12 euros/hour
- Hungary: just over 15 euros/hour.
Source: Euronews
