Annual Labour Costs – EU 4th Quarter of 2015

March 24, 2016

00_2Hourly labour costs rose by 1.3% in the euro area (EA19) and by 1.9% in the EU28 in the fourth quarter of 2015, when compared with the same quarter of the previous year. These figures are published by Eurostat, the statistical office of the European Union. The two main components of labour costs are (1) wages & salaries and (2) non-wage costs.

1)  Wage and salary costs include direct remuneration, 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 remuneration in kind such as food, drink, fuel, company cars, etc.

2)  Non-wage costs include the employers’ social contributions plus employment taxes regarded as labour costs less subsidies intended to refund part or the entire employer’s cost of direct remuneration.

In the euro area, wages & salaries per hour worked grew by 1.5% and the non-wage component by 0.7%, in the fourth quarter of 2015 compared with the same quarter of the previous year.  In the fourth quarter of 2015, the highest annual increases in hourly labour costs for the whole economy were registered in:-

Romania +11.4%

Czech Republic +8.6%,

Latvia +7.7%,

Bulgaria +5.8%,

Slovakia +5.3%

Austria +5.2%.

Malta’s hourly rate has increased by almost 4%

Decreases were recorded in:-

Italy -0.8%

Cyprus -0.8%,

Netherlands -0.4%

Luxembourg -0.1%.