Employers in the Finnish private sector paid an average of EUR 31.10 per hour worked in 2012, according to a study of labour costs in the EU by Germany’s Federal Statistical Office Destatis. This ranked Finland seventh in the EU in terms the average hourly wage rate, at almost exactly the same level as Germany.
Sweden had the highest private sector wage rate with EUR 41.90 per hour, followed by Belgium, Denmark, France, Luxembourg, and the Netherlands.
In the manufacturing sector the hourly wage rate in Finland was EUR 33.80, compared to EUR 35.20 in Germany and EUR 43.80 in Sweden. The average hourly wage rate in the EU-27 was EUR 24.00 and in the euro currency area it was EUR 30.10.
Finland has below average non-wage costs
Labour costs are composed of gross earnings and non-wage costs. In Finland employers in the private sector paid additional non-wage costs of EUR 28 per hundred euros of gross earnings in 2012. This means that non-wage costs in Finland were significantly below the EU-27 average of EUR 32 and the euro currency area average of EUR 36.
According to Destatis, the main component of non-wage costs is the employers’ social contributions, especially the employers’ statutory social security contributions, expenditure on employee pension schemes and expenditure on continued pay in case of sickness.