Work remains expensive in Austria, as confirmed by new figures from Germany’s Federal Statistical Office. At 44.05 euros per hour, labor costs in Austria’s manufacturing and service sectors are higher than in France and Germany. Only companies in Luxembourg, Denmark, Belgium, and the Netherlands face higher hourly costs. In contrast, labor is significantly cheaper in countries like Hungary, Latvia, and Romania, where an hour costs about one-third as much, and in Bulgaria, just one-quarter.

Labor costs include gross wages and non-wage labor costs such as employer social contributions. The comparison covers all sectors except agriculture, forestry, and public administration. The EU average stands at 33.50 euros, well below Austria’s rate.

Manufacturing Sector Sees Especially High Costs

In Austria’s manufacturing sector, hourly labor costs reached 49.40 euros in 2024—a year-on-year increase of 8.6 percent. Only Denmark and Belgium are more expensive in this category (data for the Netherlands is unavailable). In the service sector, Austrian companies pay an average of 41.80 euros per hour, placing the country 8th in Europe. In this sector, labor costs are even higher in countries such as Luxembourg, Denmark, Belgium, the Netherlands, France, Germany, and Sweden.

At the opposite end of the scale, Bulgaria (10.60 euros) and Romania (12.50 euros) have the lowest labor costs in the EU. Other countries with significantly lower rates—ranging from 14 to 17 euros—include Hungary, Latvia, Lithuania, Croatia, Greece, and Poland.