A newly published report shows significant differences in labor costs among EU countries—an important factor that directly affects the income and living conditions of Vietnamese workers in Europe. Germany leads in income, but living costs are also high.

According to a report released by the German Federal Statistical Office (Destatis), labor costs—including wages, social insurance, and other expenses that employers must pay—vary considerably across European Union (EU) member states.

This is a key indicator reflecting income levels, worker benefits, and the competitiveness of labor markets in the region.

In Germany, labor costs in 2024 reached €43.40 per hour, ranking 7th in the EU and well above the bloc’s average of €33.50. This level reflects relatively high income for workers, including many Vietnamese employees living and working there. However, it also comes with higher requirements in terms of professional skills, language proficiency, and a high cost of living.

Poland grows rapidly, opening new opportunities for low-skilled workers

Poland currently records the fastest growth in labor costs in the EU—up 19% compared to 2020, reaching €17.30 per hour. Although this figure remains significantly lower than in Western European countries, the strong growth indicates that wage levels are steadily improving.

This means Vietnamese workers in Poland can expect better income prospects in the near future. However, this also comes with increasing pressure from rising living costs, taxes, and social contributions.

Czech Republic: A stable market with little wage fluctuation

In the Czech Republic—home to a large Vietnamese community—labor costs are currently €18.20 per hour. However, it has the lowest increase in labor costs in the EU, at just 1.3% since 2020. This suggests a stable labor market with minimal fluctuations, but also limited opportunities for income growth.

Countries with the highest and lowest labor costs in the EU

Among EU countries with the highest labor costs, Luxembourg leads with €55.20 per hour, followed by Denmark and Belgium. On the other hand, countries with lower labor costs than Poland include Greece (€16.70) and Croatia (€16.50).

Advice for Vietnamese workers in Europe

Choosing where to work in Europe should not be based solely on nominal salary levels. Other factors such as cost of living, social insurance contributions, working conditions, and career advancement opportunities should also be considered.

Germany is suitable for highly skilled workers with strong language abilities, while Poland or the Czech Republic may be better options for low-skilled workers due to lower costs and easier adaptation.