Maltese employee costs are the second highest among EU accession countries, according to an EU remuneration study by Deloitte Touche Tohmatsu.

Deloitte said the survey shows a wide divergence in average remuneration levels and social security costs in 24 of the 25 EU member States. The survey highlights that a wide gap still exists in the remuneration levels of EU member states that joined in May 2004 and the original 15 members, the consultancy stated.

Germany, the most expensive place to hire an employee in the EU, had average remuneration costs of e50,417, of which take home pay was e27,878, employee tax was e4,971, employee and employer social contributions were e8,784 each.

Germany was followed by Denmark at e49,168 and Belgium at e48,486. These were followed in decreasing order by Luxembourg (e47,507), France (e47,381), Italy (e45,256), Finland (e43,751), Sweden (e43,506), the UK (e37,844), Ireland (e36,852), Spain (e33,817), the Netherlands (e32,355), Austria (e30,346), Cyprus (e24,834), Portugal (e18,017), Malta (e14,073), Greece (e13,787), Czech Republic (e11,457), Lithuania (e11,133), Hungary (e9,949), Estonia (e9,264), Poland (e9,245), Slovakia (e9,216) and Latvia (e5,124).

When one compares the employer social insurance costs as a percentage of remuneration, Ireland is in fifth position. Denmark has the lowest percentage at 1.36 per cent. Ireland at 9.71 per cent is behind Cyprus, Malta and the UK which have percentages of about 9.1 per cent.

When the combined costs of tax and employee and employer social insurance costs are compared as a percentage of the total cost of employment, Ireland also comes in as having the lowest. Since 2005 the gap between Ireland and Cyprus has increased to 1.44 per cent. Malta and Luxembourg continue to be third and fourth respectively.

In completing the survey the remuneration levels for enterprises with 10 or more employees was taken as the benchmark. Employee tax is based on a married couple, one earner with two children.