Brussels: Labour costs in India are among the lowest in the world while the highest — 25 times over those in India — are in the three European Union countries of Belgium, Sweden and Germany, according to a study conducted by Mercer Human Resources Consulting, the world's largest employee benefits consultancy.

The study shows labour costs in India at around euro 2000 (Rs1,12,000) a year while in Belgium, Sweden and Germany the financial burden of employing a worker (including benefits) is more than euro 50,000 (Rs 28,00,000 a year).

The European figures are higher than costs in Japan at euro 45,839 and in US at euro 33,195.

In new EU member states such as Latvia labour costs are euro 4,752, in Lithuania euro 5,649 and in Poland euro 8,257. In Japan, annual labour costs stand at euro 45,839 and in the US it was euro 33,195.

The survey showed that EU as a whole had 15 per cent lower employment costs compared to the US. Annual labour costs in France (euro 45,879) and in the UK were in line with Japanese costs but almost 40 per cent higher than US costs.

Chinese (euro 13,884) and Indian labour costs were even more competitive, the study said.

The labour costs as computed in the survey include national average earnings for full-time male employees, social security, mandatory benefits as required by national law and voluntary benefits such as pension, death, disability and medical payments.

The labour costs include national average earnings for full-time employees, social security, mandatory benefits as required by national law and voluntary benefits such as pension, death, disability and medical payments.