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New figures released by Eurostat show that Cyprus recorded an average hourly labour cost of €21.7 in 2025, with non-wage expenses accounting for just under one-fifth of total labour costs.
Across the broader European landscape, labour costs continued to rise. The average hourly cost for the entire European Union reached €34.9 in 2025, up from €33.5 a year earlier. In the euro area, the figure increased to €38.2, compared with €36.8 in 2024. This reflects annual growth of 4.1% in the EU and 3.8% among eurozone countries.
Within the euro area, nearly all countries saw labour costs increase over the year. Malta was the only exception, posting a slight decline of 0.5%. The most notable increases were observed in Bulgaria, Croatia, Slovenia and Lithuania, all recording strong upward trends. At the other end of the scale, France and Italy experienced more modest growth. Cyprus registered a mid-range rise of 3.5%, similar to Spain and Luxembourg.
The data also underline wide disparities in labour costs between EU member states. Countries such as Bulgaria, Romania and Hungary reported the lowest hourly rates, while Luxembourg, Denmark and the Netherlands ranked among those with the highest labour costs.
According to Eurostat, total labour costs are made up of wages and salaries alongside additional expenses such as employers’ social contributions. These non-wage elements represented 24.8% of overall labour costs across the EU and 25.6% in the euro area. Romania, Lithuania and Malta recorded the smallest shares of such costs, whereas France, Sweden and Slovakia had the highest proportions.
In EU countries that are not part of the euro area, labour costs, measured in national currencies, rose across the board. Romania, Hungary and Poland posted the strongest increases, while Denmark saw the smallest growth among this group.
