European Union - Labour costs: Wages and salaries (total) was EUR25.20 in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for European Union - Labour costs: Wages and salaries (total) - last updated from the EUROSTAT on December of 2025. Historically, European Union - Labour costs: Wages and salaries (total) reached a record high of EUR25.20 in December of 2024 and a record low of EUR16.10 in December of 2008.

European Union - Labour costs other than wages and salaries was EUR8.30 in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for European Union - Labour costs other than wages and salaries - last updated from the EUROSTAT on December of 2025. Historically, European Union - Labour costs other than wages and salaries reached a record high of EUR8.30 in December of 2024 and a record low of EUR5.50 in December of 2008.

Labour cost statistics cover 2 main data collections:

• Labour Cost Survey (LCS) - long-term data collection conducted every 4 years
• Labour Cost Index (LCI) - short-term data collection conducted every quarter (for more info please consult https://ec.europa.eu/eurostat/cache/metadata/en/lci_esms.htm">LCI metadata )

Both statistics are based on a harmonised definition of labour costs.

Labour cost survey (LCS), collected every four years, provides detailed information on the level and structure of labour cost data, hours worked and hours paid in different sectors of economic activity in the European Union, EFTA countries, candidate and potential candidate countries transmitting the data to Eurostat.

LCS results are available for the reference years 2000, 2004, 2008, 2012, 2016 and 2020. All EU Member States and EFTA countries participated in the latest LCS (2020), as well as Bosnia and Herzegovina, Albania, Serbia and Türkiye. As far as available data and confidentiality rules permit, all variables and proportions are further broken down by enterprise size category, economic activity and region (for larger countries only).

The data are collected by the National Statistical Institutes in most cases on the basis of stratified random samples of enterprises or local units, restricted in most countries to units with at least 10 employees. The stratification is based on economic activity, size category and region (where appropriate). Regional metadata is identical to the metadata provided for national data. Some countries also complement the survey results with administrative data. Monetary variables are expressed in EUR, national currencies (for non-euro-area countries) and Purchasing Power Standards (PPS). Labour costs are quoted in total per year, per month and per hour, as well as per capita and per full-time equivalents (FTE). Information on staff, hours worked and hours paid is quoted in aggregate and separately for full- and part-time employees.

The gross cost of wages and salaries in the European Union's construction industry has risen significantly between 2022 and 2024. Since 2010, the index has been increasing until 2020, when it experienced a sharp fall in the first half of the year due to the start of the coronavirus pandemic.

Average hourly labour costs (total labour costs divided by the corresponding number of hours worked by the yearly average number of employees, expressed in full-time units). Available as Total labour costs, Wages and salaries, and Non-wage costs (employers’ social contributions plus taxes less subsidies), all expressed in Euro. The percentage shares of non-wage costs are also available.

Construction wages and salaries in Italy increased by nearly **** percent in 2024. According to the latest figures, the annual labor costs amounted to roughly ****** euros per full time employee equivalent in 2022. However, labor costs increased in the following two years. Norway was one of the countries with the highest construction labor costs in Europe.

List monthly payroll data for transferring to DSG accounts held on ERP system, analysis and forecasting purposes.

This statistic shows the labor costs for transportation and storage staff in the European Union (EU) in 2015, in euros per hour. Denmark was the EU country with the greatest labor costs due to a combination of high wages and high employer contributions. Bulgaria was the cheapest European country when it comes to these labor costs, with both the lowest wages and employer's contribution.

Labour cost statistics constitute a hierarchical system of multi-annual, yearly and quarterly statistics, designed to provide a comprehensive and detailed picture of the level, structure and short-term development of labour costs in the different sectors of economic activity in the European Union and certain other countries. All statistics are based on a harmonised definition of labour costs.

The quarterly Labour Cost Index (LCI) is one of the Principal European economic indicators. It shows the short-term development of the labour cost, the total cost on an hourly basis of employing labour. In other words, the LCI measures the cost pressure arising from the production factor “labour”.

The data covered by the LCI collection relate to the total average hourly labour costs and its components "wages and salaries" and "employers' social security contributions plus taxes paid minus subsidies received by the employer" (known as the non-wage component of the LCI). The data on vocational training costs and other expenditures such as recruitment costs and working clothes expenditure is not included in the calculation of the labour cost index.

The data is broken down by economic activity (NACE Rev 1.1 Sections C to O (1996Q1-2008Q4) and NACE Rev. 2 Sections B to S (2009Q1 onwards). The data is available for the EU aggregates and the EU Member States, EFTA countries (Iceland and Norway) as well as candidate and potential candidate countries (Serbia and Turkey). The data is available as 'unadjusted data (neither seasonally adjusted nor calendar adjusted data)', 'calendar-adjusted data' as well as 'seasonally and calendar adjusted' data.

The data on the Labour Cost Index is given in the form of index numbers (current base year: 2020) and as annual and quarterly growth rates (comparison with the previous quarter, or the same quarter of the previous year). Since June 2023 (publication of 2023Q1 data) base year of the indices changed from 2016 to 2020. Indices with the base year 2016 will no longer be published.

The National Statistical Institutes compile the indicators based on the available structural and short-term information collected directly from the sampled enterprises or taken from administrative data sources. All enterprises, irrespective of the size (measured by the number of employees) are covered in the LCI.

In addition, Eurostat estimates of the annual labour cost per hour in euros are provided for the EU Member States as well as the whole EU; they were obtained by combining the four-yearly Labour cost survey (LCS) with the quarterly labour cost index. Methodological information related to the annual estimates of hourly labour costs is available in separate metadata accessible here.

Early estimates of the Labour Cost Index (‘flash estimates’ or ‘FEs’) (quarterly)

Since May 2024, Eurostat has started publishing early estimates for the Labour Cost Index (‘flash estimates’ or ‘FEs’). The flash estimates (are published around t+50 days, as specified in the general release calendar of Eurostat, based on the data transmitted at t+45 days. EU countries that participate in the FE data collection are those whose annual number of employees (over the age of 15) represents more than 3% of EU totals or 3% of euro area totals, based on LFS data assessed over a period of three consecutive years. These 9 selected countries (i.e. ‘FE countries ’) are: Germany, France, Italy, Spain, the Netherlands, Belgium, Portugal, Poland and Romania (see table 1).

Table 1: Share of EA/EU employees in each of the participating countries.

(Source: EU-LFS, reference period 2023)

Poland - Labour costs: Wages and salaries (total) was EUR14.20 in December of 2024, according to the EUROSTAT. Trading Economics provides the current actual value, an historical data chart and related indicators for Poland - Labour costs: Wages and salaries (total) - last updated from the EUROSTAT on December of 2025. Historically, Poland - Labour costs: Wages and salaries (total) reached a record high of EUR14.20 in December of 2024 and a record low of EUR6.30 in December of 2008.

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Payroll Outsourcing Services Market Size 2025-2029

The payroll outsourcing services market size is forecast to increase by USD 6.52 billion at a CAGR of 5% between 2024 and 2029.

The market is experiencing significant growth due to the increasing demand for payroll cost visibility. This trend is driven by the complexities and intricacies of modern payroll systems, which require advanced technology and expertise to manage effectively. Additionally, the rise of multi-country and centralized outsourcing models is contributing to market expansion. These models enable organizations to streamline their payroll processes across multiple locations, reducing administrative burdens and ensuring compliance with local regulations. However, the market also faces challenges related to geographical transitions. As companies expand their operations into new regions, they encounter difficulties in implementing consistent payroll processes and adapting to varying payroll laws and regulations.
These challenges require careful planning and strategic partnerships with experienced payroll outsourcing providers to navigate effectively. Companies seeking to capitalize on market opportunities and mitigate these challenges must prioritize payroll cost transparency, invest in advanced technology solutions, and establish strong relationships with reputable outsourcing partners. By doing so, they can optimize their payroll processes, reduce operational costs, and ensure compliance with local regulations.

What will be the Size of the Payroll Outsourcing Services Market during the forecast period?

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The market continues to evolve, driven by the dynamic needs of various sectors. Payroll management, compliance, software, and consulting services are integral components, seamlessly integrated to enhance payroll efficiency and transparency. Payroll automation and cloud-based solutions are gaining traction, enabling real-time processing and access to payroll data. Nonprofit organizations and educational institutions leverage payroll outsourcing for cost reduction and regulatory compliance. Enterprise payroll systems require ongoing maintenance and consulting to ensure optimal performance and adherence to tax regulations. Time and attendance systems, benefits administration, and payroll reporting are essential features that contribute to workforce management and employee engagement.
Payroll data privacy and security are paramount concerns, with payroll outsourcing solutions offering advanced encryption and access control measures. Payroll cost reduction and payroll system upgrades are ongoing priorities for small and medium businesses. The market also caters to industries such as retail, manufacturing, financial services, healthcare, and government, with tailored solutions addressing unique payroll challenges. Payroll outsourcing providers offer a range of services, from employee onboarding to payroll system implementation, ensuring payroll accuracy and compliance with ever-changing legislation. The market's continuous evolution reflects the evolving needs of businesses, enabling them to focus on their core operations while ensuring a seamless payroll process.

How is this Payroll Outsourcing Services Industry segmented?

The payroll outsourcing services industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in 'USD million' for the period 2025-2029, as well as historical data from 2019-2023 for the following segments.

Product

  Hybrid
  Fully outsourced


Type

  Mid-market
  National
  Multinational


Enterprise Size

  SMEs
  Large Enterprises


Industry Vertical

  BFSI
  Healthcare
  Retail
  IT & Telecom


Deployment Type

  Cloud
  On-Premises


Geography

  North America

    US
    Canada


  Europe

    France
    Germany
    Italy
    Spain
    UK


  APAC

    China
    Japan


  South America

    Brazil


  Rest of World (ROW)

By Product Insights

The hybrid segment is estimated to witness significant growth during the forecast period.

Payroll outsourcing services have gained significant traction among businesses, particularly in areas of human resources, government payroll, and talent acquisition. Payroll automation, a key component of these services, enhances efficiency and transparency while reducing the risk of payroll fraud. Medium businesses and retail industries often opt for payroll outsourcing to streamline operations and ensure compliance with complex payroll regulations. Cloud-based payroll solutions have become increasingly popular due to their accessibility and cost savings. Financial services firms and nonprofits also utilize payroll outsourcing for benefits administration and payroll system maintenance. Enterprise payroll services offer scalability and customization for large organizations, while consulting and technology payr

Monthly management information on staff numbers and paybill costs in the Department of Health & Non-consolidated Performance Related Pay data for the Department of Health in respect of the performance year 2010-11.

Construction wages and salaries in Germany increase noticeably in 2024. According to the latest figures, the annual labor costs amounted to roughly ****** euros per employee in 2022. However, labor costs increased in the two following years. Norway was one of the countries with the highest construction labor costs in Europe.

Labour cost, wages and salaries (including apprentices) by NACE Rev. 2 activity

Labour cost, wages and salaries, direct remuneration by NACE Rev. 1.1 activity - LCS survey 2004

Labour cost index shows the short-term development of the total cost, on an hourly basis, for employers of employing the labour force. The index covers all market economic activities except agriculture, forestry, fisheries, education, health, community, social and personal service activities. Labour costs include gross wages and salaries, employers social contributions and taxes net of subsidies connected to employment. The labour cost index is compiled as a "chain-linked Laspeyres cost-index" using a common index reference period (2012 = 100). The index is presented in calendar and seasonally adjusted form. Growth rates with respect to the previous quarter (Q/Q-1) are calculated from seasonally and calendar adjusted figures while growth rates with respect to the same quarter of the previous year (Q/Q-4) are calculated from calendar adjusted figures.

Analysis of ‘Labour cost, wages and salaries, direct remuneration by NACE Rev. 1.1 activity and NUTS 1 regions - LCS survey 2000’ provided by Analyst-2 (analyst-2.ai), based on source dataset retrieved from https://data.europa.eu/data/datasets/wjknqtujkfpti6gu5hmavw on 30 September 2021.

--- No further description of dataset provided by original source ---

--- Original source retains full ownership of the source dataset ---

Labour Costs are the total expenditure borne by employers for the purpose of employing staff. They include employee compensation (including wages, salaries in cash and in kind, employers' social security contributions), vocational training costs, other expenditure such as recruitment costs, spending on working clothes and employment taxes regarded as labour costs minus any subsidies received.

Construction wages and salaries in the Netherlands were **** percent higher in the three first quarters of 2024 as in 2023. According to the latest figures, the annual labor costs amounted to roughly ****** euros per employee in 2022. In 2022, Norway was one of the countries with the highest construction labor costs in Europe.

Construction wages and salaries in Sweden fell by **** percent in 2024. According to the latest figures, the annual labor costs amounted to roughly ****** euros per employee in 2022. However, labor costs increased significantly between 2021 and 2023. In 2020, Norway was one of the countries with the highest construction labor costs in Europe.