Labor cost comparison between Bulgaria, Romania and other European countries

According to Eurostat, Romania is in the lead in the EU in the second quarter of 2017 in terms of increase of labor costs. The employers there spend 18.6% more for their employees compared to the same period last year. The increase is in all economic sectors, but it’s most prominent in the education, healthcare, entertainment industry and public administration.

Second place goes to Hungary with 13%, Czech Republic is in third with 11.1% and Bulgaria gets fourth place with 11% increase in labor costs. The top 5 is completed by Poland with 8.3%.

The increase in Bulgaria is most noticeable in companies dealing with real estate trading (16.8%) and least noticeable – in the construction and energy sectors (5%). The higher labor costs are mainly due to the increase of the minimum monthly salary, the higher payment for the Pension Fund and the lack of qualified workers in the labor market, which leads to stronger competition among companies for attracting them.

About Author: brcci