Labour Cost Survey

Consideration of labour costs by economic branch reveals a wide spread: At the level of sections of ÖNACE 2008, labour costs per hour actually worked (including apprentices and sick-nursing students) in “Financial and insurance activities” (€54.43) were more than three times higher than in “Accommodation and food service activities” (€17.80). At the level of ÖNACE divisions they were almost five times higher in “Extraction of crude petroleum and natural gas” (€77.84) than in “Water transport” (€15.59). Besides that there is a clear connection between the level of the labour costs and the number of persons employed. The more people a survey unit employed, the higher the labour costs: in enterprises of 10 to 49 employees, the hour actually worked costs an average of €27.02; in units of 1 000 and more employees, €36.66. Regionally, labour costs were 10% higher on average in eastern Austria than in southern Austria and 7% higher than in western Austria. However, eastern Austria is very heterogeneous: Vienna was 13% above the Austrian average as highest federal province with €36.62 per hour actually worked. In Burgenland on the other hand, one hour worked was one fourth cheaper than in the Austrian capital (€27.49).

In 2016, labour costs (comprising apprentices and sick-nursing students) consisted of 73% of direct costs and 27% of indirect costs; an hour actually worked amounted to €23.87 of direct labour costs and to €8.66 indirect costs. Direct labour costs were well above average in “Activities auxiliary to financial services and insurance activities” (76%), whereas indirect labour costs were proportionally above average in “Air transport” (33%). Dividing labour costs (excluding apprentices and sick-nursing students) into direct remuneration paid in each pay period and incidental wage costs, a large share accounted for incidental wage costs in “Telecommunications” (59%); therefore, the incidental wage cost rate (i.e. incidental wage costs as a percentage of direct remuneration paid in each pay period) was also higher than the average here (141%). The more people are employed, the higher was the proportion of indirect labour costs and incidental wage costs (in units of 10 to 49 employees, 26% and 47% respectively; in units of 1 000 and more employees, 28% and 52% respectively).

The 2016 breakdown of the composition of total labour costs (including apprentices and sick-nursing students) shows that, on average, labour costs consisted of 73% gross wages and salaries, 24% employers’ social contributions, 2% taxes, 0.4% vocational training costs and of 0.2% other expenditure. Subsidies for reduction of the labour cost burden accounted for 0.5%. Of the gross wages and salaries, payments made in each period (direct remuneration paid in each pay period) made up 68%, payments not incurred with every remuneration were 18% (essentially 13^th and 14^th monthly salary, bonuses), and remuneration for days not worked (except sickness) were 12%. Of the employers’ social contributions, statutory social security contributions accounted for the bulk, at 80%, followed by guaranteed remuneration in the event of sickness (10%), statutory and collectively agreed redundancy payments (“old severance pay scheme”) and severance payments (5%) and collectively agreed, contractual and voluntary social security contributions (4%). Considered by ÖNACE 2008 sections, gross wages and salaries were proportionally the highest in “Education” (75%); likewise social security contributions (total) were the highest in “Construction” (because of payments to BUAK 28%). “Financial and insurance activities” as well as “Electricity, gas, steam and air conditioning supply” expended the most proportionally (0.8% each) on vocational training for its employees, whereas “Accommodation and food service activities” spent the least (0.1%).

In 2016, the number of hours actually worked by each employee (full and part-time employees converted into full-time units) amounted to 1 730. In industry and construction, the total amount of hours worked (1 699) was lower than in the services sector (1 746). On average, 2 083 hours had been paid for each employee. The share of working hours lost in hours paid was 17%.

Results of the labour cost surveys in the EU member states are published by Eurostat in a publicly available database.

The results of the Labour Cost Survey 2016 represent a total of some 101 000 local units with 2.64 million employees. A sample of 7 430 survey units (enterprises, consortia, public bodies, public sector enterprises and associations, societies) throughout industries and construction (sections B to F of ÖNACE 2008) and in nearly all parts of the services sector (sections G to N and P to S) were surveyed. Enterprises with fewer than ten employees and the branches “Agriculture, forestry and fishing” (section A) and “Public administration and defence; compulsory social security” (section O) were excluded. Labour costs are surveyed according to harmonised EU guidelines (Regulations (EC) No. 530/1999, No. 1737/2005, No. 698/2006) at intervals of four years. The Austrian survey 2016 was also based on the Regulation on Labour Cost Statistics (Federal Law Gazette II No. 126/2006, amended by Federal Law Gazette II No. 166/2017, available in German only).

Please consult our German website for tables and charts containing further information.