Poland still has fairly low labor costs compared to the rest of the European Union. In 2012, the average cost of one hour of work for employers was about €7.2, according to Eurostat data. In annual terms, the cost increased by 3.1 percent.
Polish labor costs are much lower than those in Belgium and Sweden (about €40), Germany, Finland and Austria (about €31), or Spain and the UK (about €21-€22). Only four countries have lower labor costs: Bulgaria, Romania, Lithuania and Latvia.
Labor costs include wages, but also social and health insurance and other obligatory payments.
“We shouldn't be comparing ourselves to other, more developed EU countries. Potential investors might be looking to other countries, not necessarily in the EU, where the labor costs are cheaper,” said Jacek Brzozowski from the Employers of Poland (Pracodawcy RP) organization.
“We're not really a cheap country, when we take into account the level of our economic development,” explained Jeremi Mordasewicz from PKPP Lewiatan. “There are 54 countries in the world that offer better conditions for running a business. They make up for higher labor costs less red tape,” he added.
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