Source: CNA
Based on the findings of the labor Cost Survey (LCS) conducted by the Cyprus Statistical Service, the hourly labor cost was set at €18.10 with 2020 serving as the benchmark year.
For all economic activities (apart from those in agriculture, forestry, and fishing, household services, and limited liability organizations and institutions), the hourly labor cost per hour worked was €18.10.
The cost of labor per hour varies significantly across industries. Accommodation and food service activities have the lowest hourly labor cost at €7.30, followed by wholesale and retail trade - repair of motor vehicles and motorcycles at €11.20. Education has the highest rate at €36.20, followed by financial and insurance activities at €33.70.
Annual and monthly labor expenses
For 2020, the annual labor cost per employee (in full-time equivalent FTE units), excluding apprentices, was €30,335 and the monthly labor cost was €2,528. The annual and monthly labor costs for the Accommodation and Food Service Activities sector are €11,201 and €933, respectively, while the Financial and Insurance Activities sector has the highest at €55,467 and €4,622.
Labor cost structure
Wages and Salaries (78.6%) and Social Security Contributions (21.1%) account for the majority of total labor costs. Vocational Training Expenses, Other Expenses incurred by the employer, and Taxes paid by the employer account for a negligible portion of the total costs.
Working hours
Full-time employees worked an average of 1,296 hours per year (Education) to 1,926 hours (Other) (Mining and quarrying). The average number of hours worked per year by full-time employees ranged from 1,527 (Arts, Entertainment, and Recreation) to 2,207. (Mining and Quarrying).
