Estonia's Labor Costs One-Third of EU Average
According to figures from Germany's Federal Statistics Office, Estonia has the 21st highest labor costs in the 27-member European Union.
Employers in the Estonian private sector paid their workers 8.6 euros per hour on average in 2012, up 6.4 percent compared to the previous year, but still far off the EU average of 23.5 euros, the office said in a press release last week.
Sweden topped the list with 41.9 euros per hour, followed by Belgium (40.4 euros) and Denmark (39.5).
Labor is more expensive in Finland (31.1 euros per hour), but Latvia (6.2) and Lithuania (5.8) are fourth and third from the bottom respectively. Romania (4.5) and Bulgaria (3.7) have the cheapest labor.
Labor costs are calculated combining gross earnings and non-wage costs. Social tax and expenditure on employee pension schemes are included in non-wage costs, which in Estonia are 37 euros per every 100 euros paid in gross earnings. That number ranks Estonia sixth highest, tying with the Czech Republic, Spain and Austria in the EU.
Sweden (51 euros per 100 euros in gross income), France (50) and Belgium (47) are at the forefront of non-wage costs, with Luxembourg (16), Slovenia (16), Denmark (15) and Malta (10) at the foot of the list.
Finns pay less that the EU average of 32 euros per 100 euros, handing over 28 euros. Lithuanians pay 41 and Latvians 26 euros.