In Germany, an hour of work costs 45 euros – only a few countries in the EU are more expensive.

Germany’s Labor Costs Remain Elevated, Tracking Below EU Average

Germany continues to maintain some of the highest labor costs within the European Union. Recent data indicates a sustained increase in the cost of an hour’s work, particularly in manufacturing and service sectors. According to the Federal Statistical Office in Wiesbaden, the average cost for an hour of work reached 45 euros in 2025.

This figure represents a significant difference compared to the EU average of 34.90 euros. German companies are paying 29 percent more for an hour of work than the average across the European Union, as reported by Telegrafi. Despite this elevated cost, Germany’s labor cost increases in 2025 were slightly lower than the EU average, rising by 3.6 percent compared to 4.1 percent.

This places Germany among the most competitive nations within the EU in terms of labor expenses. Analysts note that while Germany’s labor costs remain high, the rate of increase has been moderating. The cost of an hour of work in key sectors continues to be a significant factor for German businesses, but the country’s performance relative to its neighbors remains comparatively strong.

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