The average hourly labour cost in Cyprus reached €21.7 in 2025, while the share of non-wage costs stood at 19.4% of total labour costs, according to data published by Eurostat.
At the European Union level, the average hourly labour cost across the whole economy was estimated at €34.9 in 2025, up from €33.5 in 2024, while in the euro area it rose to €38.2 from €36.8 the previous year. According to Eurostat, hourly labour costs increased by 4.1% in the EU and by 3.8% in the euro area compared with 2024.
Within the euro area, hourly labour costs rose in all countries, except Malta (-0.5%). The largest increases were recorded in Bulgaria (+13.1%), Croatia (+11.6%), Slovenia (+9.3%) and Lithuania (+9.2%), while the smallest increases were observed in France (+2.0%) and Italy (+3.2%). Cyprus, together with Spain and Luxembourg, recorded an increase of 3.5%.
Eurostat’s data show significant differences between EU Member States in terms of the level of hourly labour costs. The lowest levels were recorded in Bulgaria (€12.0), Romania (€13.6) and Hungary (€15.2), while the highest were in Luxembourg (€56.8), Denmark (€51.7) and the Netherlands (€47.9).
Eurostat points out that total labour costs consist of wages and salaries as well as non-wage costs, such as social contributions. The share of non-wage costs in the whole economy was 24.8% in the EU and 25.6% in the euro area. The lowest shares of non-wage costs were recorded in Romania (4.8%), Lithuania (5.5%) and Malta (5.8%), while the highest were in France (32.3%), Sweden (31.7%) and Slovakia (28.6%).
For EU countries outside the euro area, hourly labour costs, expressed in national currency, increased in all countries, with the largest rises recorded in Romania (+10.6%), Hungary (+8.9%) and Poland (+8.8%). The smallest increase was observed in Denmark (+3.0%).
(Source: CNA)
