There are huge differences in the cost of labour in some Member States in the European Union. Moreover, this difference is growing year by year. Typically, people are paid much more for work in Western countries than in the East.
Eurostat released last year’s survey data. In the EU, the hourly wage was €28.5 in 2020. In this respect, the last place goes to Bulgaria, where €6.56 is paid on average per working hour, writes penzcentrum.hu. Romania is also at the bottom of the list, with €8.1 per hour of work. Unfortunately, compared to the previous year, Hungary also deteriorated and finished as the third worst place.
In Hungary, the average hourly work earns you 9.9 euros.
Last year, Hungary was the fourth worst, together with Latvians, but while Latvians improved, Hungary got even lower on the list. Among Hungary’s neighbours, Austria has the best position, as an average hour of work there earns you 36.7 euros. This is almost four times the Hungarian figure. In addition, Slovakia (13.4 euros), Slovenia (19.9 euros), and Croatia (10.8 euros) are ahead of Hungary.
Denmark, Luxembourg, Belgium, Iceland, and France are at the top of the list. In the latter three places, an average working hour earns you more than €40. The Danish workforce is the leader, with 45.8 euros as hourly wages, which is more than four times the Hungarian figure.
Eurostat examined total labour costs.
So, the hourly wage also includes workers’ wages, bonuses, cafeteria, and other benefits. In addition, training and the employee’s work clothes are included as well. Moreover, the statistics also take into account sick leave, petrol money, and free coffee in the office.
This significantly nuances the situation. For example, in a western country, extra costs are higher, as telephone subscriptions or travel wages are likely to be more expensive than in Eastern Europe. The Eurostat survey examined all sectors of the economy, except for agriculture and public administration. Furthermore, it did not count small businesses with fewer than 10 employees.
The data explains why there are more and more western brand factories in Hungary.