The payroll accounts for a significant share of chemicals production costs (14%) and is therefore a major factor in competitiveness. Labour cost per employee in the EU chemical industry (including pharmaceuticals) has increased by an average 3% per annum over the last 10 years (1996-2006). People in the chemical industry are highly qualified and the chemical industry redistributes part of its profit to its employees through competitive salaries. As a consequence, labour cost per employee has been increasing more than the industry average over the last 10 years.