In 2025, average wages across the manufacturing and service sectors in Germany reached €45.00 per hour. According to data released by the Federal Statistical Office (Destatis), this figure represents a significant increase compared to the European Union average of €34.90 per hour, meaning German employers paid 29 percent more for a worker’s hour. Furthermore, the cost of labor per hour in Germany rose by 3.6 percent compared to the previous year (2024: €43.50 per hour). This annual growth rate was lower than the EU-wide average increase of 4.1 percent. Note that labor costs for Belgium were not included in the current EU average as the corresponding results are not yet available.
Labor costs vary considerably across the EU. Based on preliminary 2025 results, the highest hourly wages were recorded in Luxembourg (€56.80), Denmark (€51.70), and the Netherlands (€47.90). Interestingly, in previous years, Belgium ranked third in this list, surpassing the Netherlands. Conversely, the lowest recorded labor costs in 2025 were in Hungary (€15.20), Romania (€13.60), and Bulgaria (€12.00).
In terms of percentage growth, Bulgaria reported the highest increase at 13.1 percent in 2025, closely followed by Croatia (+11.6 percent) and Poland (+10.5 percent). Countries such as France (+2.0 percent), Denmark (+3.0 percent), and Italy (+3.2 percent) saw smaller increases, while Malta actually experienced a slight decrease of 0.5 percent compared to the previous year.
Looking at longer-term trends, German labor costs have increased by at least 14 percent across all economic sectors when compared to 2020. In specific highly skilled sectors-including freelance, scientific, and technical services, other commercial services, and hospitality-the cost increase exceeded 30 percent. The overall economic average shows a cumulative increase of 22.3 percent over the past five years. However, relative to the EU average, the situation remained relatively stable in 2025. Statisticians noted that in 2020, German labor costs were nearly identical to the EU average (both at 30 percent), and this near-parity held in 2025 (both at 29 percent).