CYPRUS: Hotels and catering have the lowest labour costs

Hotel and catering services show the lowest labour costs, while financial, insurance and education are the highest paid, according to the Labour Cost Survey 2016, issued on Tuesday.

The hourly cost (labour cost per hour worked) for all economic activities (excluding Agriculture, Forestry, Fisheries and Households as employers) is €16.30.

Hourly labour cost per economic activity differs greatly. The lowest hourly labour cost is recorded in the area of ​​Accommodation and Catering Services with €7.50, followed by €9.00 from Administrative and Support Service Activities.

The highest is recorded in the field of education with €33.60 per hour followed by Financial and Insurance Activities with €28.00.

The annual labour cost per employee in full-time units, excluding apprentices, for the year 2016 was €29,373 and the monthly cost €2,448.

The sector of Accommodation and Catering Services Activities presents the lowest annual and monthly labour costs with €15,711 and € 1,309 respectively, while the Financial and Insurance Services sector is the highest with € 46,968 and € 3,914. 

Total labour costs consist mainly of wages and salaries (81%) and Employers' Social Security Contributions (18.4%). Vocational training costs incurred by the employer, taxes paid by the employer and other costs incurred by the employer constitute a negligible part of the total cost.

The average hours worked by full-time employees per year range from 1,302 (Education) to 2,167 (Administrative and Supporting Activities).

Average hours of work paid by full-time employees per year range from 1,684 (Education) to 2,330 (Administrative and Supporting Activities).

Definitions Labour costs mean the total expenditure borne by employers in order to employ staff.

Labour costs include compensation of employees with wages and salaries in cash or in kind and employers' social contributions, vocational-training costs, other expenditures, taxes relating to employment regarded as labour costs, less any subsidies received.