The cost of employing workers across the European Union rose again in 2025, with differences between countries continuing to stretch.

New figures from Eurostat show that employers now pay nearly five times more for an hour of work in the bloc’s most expensive country than in its cheapest.

Across the EU economy, the average hourly labor cost reached €34.9 last year. Within the eurozone, where 20 countries share the single currency, the average stood higher at €38.2.

Both figures marked an increase from 2024, when costs were €33.5 and €36.8 respectively, reflecting steady upward pressure on wages and employer contributions.

The divide between member states remains stark. Bulgaria recorded the lowest hourly labor cost at €12, followed by Romania at €13.6 and Hungary at €15.2. At the other end of the scale, Luxembourg topped the list at €56.8 per hour. Denmark and the Netherlands followed, with costs of €51.7 and €47.9.

Labor costs in Europe are made up of wages and additional expenses paid by employers, mainly social security contributions. These non-wage costs account for roughly a quarter of total labor expenses across the EU, at 24.8 percent, and slightly more in the eurozone at 25.6 percent. Their share varies widely: Romania, Lithuania and Malta report the lowest levels, while France, Sweden and Slovakia rank among the highest.

The past year brought uneven growth across the continent. Overall, hourly labor costs rose by 4.1 percent in the EU and 3.8 percent in the eurozone. The sharpest increases were concentrated in Eastern Europe, where Bulgaria saw a jump of 13.1 percent, Croatia 11.6 percent, and Slovenia and Lithuania around 9 percent.

Among eurozone countries, Malta was the only exception, posting a slight decline of 0.5 percent. Elsewhere in the currency bloc, France and Italy recorded the smallest increases.

Countries outside the eurozone, where labor costs are calculated in national currencies, also reported rising figures. Romania, Hungary and Poland saw the strongest gains, while Denmark recorded the slowest growth.

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