Belgium is third most expensive EU country for labour

Labour costs in Belgium are much higher than the average level in Europe - the third highest of all EU countries - according to newly released figures from European Union statistical office Eurostat.

In 2024, the average hourly labour cost in Belgium was €48.20. Only Luxembourg (€55.20) and Denmark (€50.10) saw higher costs in the EU.

The average hourly cost in the 27 EU member states is €33.50 per hour, increasing to €37.30 in the Eurozone, the 20 EU countries that use the euro.

Belgium’s labour costs per hour are more than neighbouring the Netherlands (€45.20), France (€43.70) and Germany (€43.40) and the country’s labour rate is around four times higher than Bulgaria (€10.60), Romania (€12.50) and Hungary (€14.10), that have the lowest average hourly costs in the EU.

Labour costs represent the total expenditure incurred by employers in employing staff. They include the remuneration of employees, including social contributions and training, expenditure on recruitment and work clothing, and employment taxes, minus any subsidies received. The average hourly cost represents the total cost of labour divided by the corresponding number of hours worked.

Eurostat counts the main components of labour costs as wages and salaries and non-wage costs - such as employers’ social contributions. The share of non-wage costs in total labour costs for the whole economy was 24.7% in the EU and 25.5% in the euro area. The lowest shares of non-wage costs in the EU were recorded in Romania (4.8%), Lithuania (5.4%) and Malta (5.8%) and the highest in France (32.2%) and Sweden (31.6%).

In 2024, compared with 2023, hourly labour costs at the whole economy level expressed in euros rose by 5% in the EU and by 4.5% in the euro area.

Within the euro area, hourly labour costs increased in all countries. The largest increases were recorded in Croatia (14.2%), Latvia (12.1%) and Lithuania (10.8%). The lowest rises were seen in Czechia (1.3%), followed by Finland (1.8%) and Luxembourg (2.1%).

Photo: Benoit Doppagne/Belga