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31/08/2016

Labour costs four times more in EU15

Enlargement

Labour costs four times more in EU15

The ten new EU member states have a significant advantage in terms of lower labour costs, reveals new report.

A new report by Mercer Human Resource Consulting has looked into detailed labour costs in the EU-25.

It shows that employment costs in western EU countries are more than four times those in the East. 

On average, employment costs in the EU are around 15% lower than in the US. But, taking eastern EU countries out of the equation, costs in western EU countries are 23% higher.

The calculation of employment costs is based on a composite that includes national average pay, social security, and other mandatory and typical voluntary benefits including pension, healthcare and disability benefits.

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