Two years ago, Maltese full-time employees worked 100 hours more than they did in 2008, topping the European league, but receiving a lower pay.

Statistics released in Brussels yesterday show that, on average, Maltese labour costs, largely consisting of wages and salaries and social contributions paid by employers, are substantially lower than the EU average.

Labour costs in Malta in 2012 stood at €11.80 an hour, slightly more than a third of the euro area’s average of €29.30 an hour.

Maltese labour costs are only comparable with former communist countries, which joined the EU together with the island.

In 2012, Denmark had by far the highest labour costs, with each hour costing employers €40.10. It was followed by Belgium, at €38 and Sweden at €37.30. But the Bulgarians had the lowest labour costs in the EU at just €3.40 an hour, followed by Romania at €4.10.

This might be one of the main reasons why many workers from these countries are moving to other EU member states, including Malta.

Low labour costs give Malta a competitive edge

Although low labour costs might be positive news for foreign investors on the island and they give Malta a competitive edge over other EU member states, it is not so positive for salaried workers, even when considering the hours spent at the workplace.

Eurostat said that, in 2012, Maltese workers spent an average of 37.70 hours a week at work for a total of 1,961 hours a year after deducting public holidays and vacation leave.

EU employees in general spent 1,735 hours at work, 226 hours or five working weeks less than the average Maltese worker.

The French spent the least time at work (1,555 hours) followed by the Finns (1,610 hours).

Compared to 2008, the average number of hours worked per year increased mostly in Malta (+100 hours) followed by Cyprus (+83 hours) and Estonia (+27 hours).

The sharpest drop was registered in Ireland, down 90 hours compared with four years earlier.