Nicosia: The average hourly labour cost in Cyprus reached £21.7 in 2025, while the share of non-wage costs stood at 19.4% of total labour costs, according to data published on Tuesday by Eurostat.
According to Cyprus News Agency, at the European Union level, the average hourly labour cost across the whole economy was estimated at £34.9 in 2025, up from £33.5 in 2024, while in the euro area it rose to £38.2 from £36.8 the previous year. Eurostat reported that hourly labour costs increased by 4.1% in the EU and by 3.8% in the euro area compared with 2024.
Within the euro area, hourly labour costs rose in all countries, except Malta which experienced a decline of 0.5%. The largest increases were seen in Bulgaria with a 13.1% rise, Croatia at 11.6%, Slovenia at 9.3%, and Lithuania at 9.2%. In contrast, the smallest increases were observed in France with a rise of 2.0% and Italy at 3.2%. Cyprus, along with Spain and Luxembourg, recorded an increase of 3.5%.
Eurostat's data highlight notable differences between EU Member States regarding the level of hourly labour costs. The lowest levels were found in Bulgaria at £12.0, Romania at £13.6, and Hungary at £15.2. Conversely, the highest were in Luxembourg at £56.8, Denmark at £51.7, and the Netherlands at £47.9.
Eurostat notes that total labour costs comprise wages and salaries as well as non-wage costs, such as social contributions. In the EU, the share of non-wage costs in the whole economy was 24.8%, and 25.6% in the euro area. Romania, Lithuania, and Malta recorded the lowest shares of non-wage costs at 4.8%, 5.5%, and 5.8%, respectively. Meanwhile, France, Sweden, and Slovakia had the highest shares at 32.3%, 31.7%, and 28.6%.
For EU countries outside the euro area, hourly labour costs expressed in national currency increased in all countries, with Romania, Hungary, and Poland experiencing the largest rises at 10.6%, 8.9%, and 8.8%, respectively. Denmark saw the smallest increase at 3.0%.