diff --git a/alembic/versions/20260305_add_variable_label.py b/alembic/versions/20260305_add_variable_label.py
new file mode 100644
index 0000000..c6ea9b6
--- /dev/null
+++ b/alembic/versions/20260305_add_variable_label.py
@@ -0,0 +1,36 @@
+"""Add label column to variables table
+
+Revision ID: add_variable_label
+Revises: 886921687770
+Create Date: 2026-03-05
+
+Variables now carry a human-readable label sourced from OpenFisca's
+Variable.label class attribute (e.g. "Employment income"). Previously
+labels were auto-generated on the frontend from the snake_case name.
+"""
+
+from typing import Sequence, Union
+
+import sqlalchemy as sa
+import sqlmodel.sql.sqltypes
+
+from alembic import op
+
+# revision identifiers, used by Alembic.
+revision: str = "add_variable_label"
+down_revision: Union[str, Sequence[str], None] = "886921687770"
+branch_labels: Union[str, Sequence[str], None] = None
+depends_on: Union[str, Sequence[str], None] = None
+
+
+def upgrade() -> None:
+    """Add label column to variables table."""
+    op.add_column(
+        "variables",
+        sa.Column("label", sqlmodel.sql.sqltypes.AutoString(), nullable=True),
+    )
+
+
+def downgrade() -> None:
+    """Remove label column from variables table."""
+    op.drop_column("variables", "label")
diff --git a/scripts/seed_models.py b/scripts/seed_models.py
index 049558e..74f78f2 100644
--- a/scripts/seed_models.py
+++ b/scripts/seed_models.py
@@ -125,6 +125,7 @@ def seed_model(
                         {
                             "id": uuid4(),
                             "name": var.name,
+                            "label": getattr(var, "label", None) or "",
                             "entity": var.entity,
                             "description": var.description or "",
                             "data_type": var.data_type.__name__
@@ -144,6 +145,7 @@ def seed_model(
                 [
                     "id",
                     "name",
+                    "label",
                     "entity",
                     "description",
                     "data_type",
diff --git a/src/policyengine_api/api/variables.py b/src/policyengine_api/api/variables.py
index 04aa512..e592820 100644
--- a/src/policyengine_api/api/variables.py
+++ b/src/policyengine_api/api/variables.py
@@ -56,11 +56,12 @@ def list_variables(
 
     if search:
         # Case-insensitive search using ILIKE
-        # Note: Variables don't have a label field, only name and description
         search_pattern = f"%{search}%"
-        search_filter = Variable.name.ilike(
-            search_pattern
-        ) | Variable.description.ilike(search_pattern)
+        search_filter = (
+            Variable.name.ilike(search_pattern)
+            | Variable.label.ilike(search_pattern)
+            | Variable.description.ilike(search_pattern)
+        )
         query = query.where(search_filter)
 
     variables = session.exec(
diff --git a/src/policyengine_api/models/variable.py b/src/policyengine_api/models/variable.py
index eeebddc..8ee6b94 100644
--- a/src/policyengine_api/models/variable.py
+++ b/src/policyengine_api/models/variable.py
@@ -12,6 +12,7 @@ class VariableBase(SQLModel):
     """Base variable fields."""
 
     name: str
+    label: str | None = None
     entity: str
     description: str | None = None
     data_type: str | None = None  # Store as string representation
diff --git a/test_fixtures/fixtures_variables.py b/test_fixtures/fixtures_variables.py
new file mode 100644
index 0000000..9a0b052
--- /dev/null
+++ b/test_fixtures/fixtures_variables.py
@@ -0,0 +1,80 @@
+"""Fixtures and helpers for variable-related tests."""
+
+import pytest
+
+from policyengine_api.models import (
+    TaxBenefitModel,
+    TaxBenefitModelVersion,
+    Variable,
+)
+
+# ---------------------------------------------------------------------------
+# Fixtures
+# ---------------------------------------------------------------------------
+
+
+@pytest.fixture
+def us_model_version(session):
+    """Create a policyengine-us model and version for testing."""
+    model = TaxBenefitModel(name="policyengine-us", description="US model")
+    session.add(model)
+    session.commit()
+    session.refresh(model)
+
+    version = TaxBenefitModelVersion(
+        model_id=model.id,
+        version="1.0.0",
+        description="Test US version",
+    )
+    session.add(version)
+    session.commit()
+    session.refresh(version)
+    return version
+
+
+@pytest.fixture
+def uk_model_version(session):
+    """Create a policyengine-uk model and version for testing."""
+    model = TaxBenefitModel(name="policyengine-uk", description="UK model")
+    session.add(model)
+    session.commit()
+    session.refresh(model)
+
+    version = TaxBenefitModelVersion(
+        model_id=model.id,
+        version="1.0.0",
+        description="Test UK version",
+    )
+    session.add(version)
+    session.commit()
+    session.refresh(version)
+    return version
+
+
+# ---------------------------------------------------------------------------
+# Factory Functions
+# ---------------------------------------------------------------------------
+
+
+def create_variable(
+    session,
+    model_version,
+    name: str,
+    label: str | None = None,
+    entity: str = "person",
+    description: str | None = None,
+    data_type: str | None = "float",
+) -> Variable:
+    """Create and persist a Variable."""
+    var = Variable(
+        name=name,
+        label=label,
+        entity=entity,
+        description=description,
+        data_type=data_type,
+        tax_benefit_model_version_id=model_version.id,
+    )
+    session.add(var)
+    session.commit()
+    session.refresh(var)
+    return var
diff --git a/tests/test_variable_labels.py b/tests/test_variable_labels.py
new file mode 100644
index 0000000..a99382b
--- /dev/null
+++ b/tests/test_variable_labels.py
@@ -0,0 +1,297 @@
+"""Tests for variable label field across all variable endpoints."""
+
+import pytest
+
+from test_fixtures.fixtures_variables import (  # noqa: F811
+    create_variable,
+    uk_model_version,
+    us_model_version,
+)
+
+
+# ---------------------------------------------------------------------------
+# GET /variables - label in list responses
+# ---------------------------------------------------------------------------
+
+
+class TestListVariablesLabel:
+    """Tests that label is returned when listing variables."""
+
+    def test_label_returned_in_response(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Variable with a label should include it in the list response."""
+        create_variable(
+            session,
+            us_model_version,
+            name="employment_income",
+            label="Employment income",
+        )
+
+        response = client.get("/variables")
+        assert response.status_code == 200
+        data = response.json()
+        assert len(data) == 1
+        assert data[0]["label"] == "Employment income"
+
+    def test_null_label_returned_when_absent(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Variable without a label should return null."""
+        create_variable(
+            session,
+            us_model_version,
+            name="age",
+            label=None,
+        )
+
+        response = client.get("/variables")
+        assert response.status_code == 200
+        data = response.json()
+        assert len(data) == 1
+        assert data[0]["label"] is None
+
+    def test_empty_label_returned(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Variable with an empty string label should return it as-is."""
+        create_variable(
+            session,
+            us_model_version,
+            name="household_weight",
+            label="",
+        )
+
+        response = client.get("/variables")
+        assert response.status_code == 200
+        assert response.json()[0]["label"] == ""
+
+
+# ---------------------------------------------------------------------------
+# GET /variables?search= - search by label
+# ---------------------------------------------------------------------------
+
+
+class TestSearchVariablesByLabel:
+    """Tests that the search parameter matches against labels."""
+
+    def test_search_matches_label(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Searching for a term in the label should return the variable."""
+        create_variable(
+            session,
+            us_model_version,
+            name="employment_income",
+            label="Employment income",
+        )
+        create_variable(
+            session,
+            us_model_version,
+            name="age",
+            label="Age of person",
+        )
+
+        response = client.get(
+            "/variables",
+            params={
+                "search": "Employment",
+                "tax_benefit_model_name": "policyengine-us",
+            },
+        )
+        assert response.status_code == 200
+        data = response.json()
+        assert len(data) == 1
+        assert data[0]["name"] == "employment_income"
+
+    def test_search_label_case_insensitive(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Label search should be case-insensitive."""
+        create_variable(
+            session,
+            us_model_version,
+            name="income_tax",
+            label="Income tax",
+        )
+
+        response = client.get(
+            "/variables",
+            params={
+                "search": "INCOME TAX",
+                "tax_benefit_model_name": "policyengine-us",
+            },
+        )
+        assert response.status_code == 200
+        assert len(response.json()) == 1
+
+    def test_search_partial_label_match(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Partial label matches should be returned."""
+        create_variable(
+            session,
+            us_model_version,
+            name="state_income_tax",
+            label="State income tax",
+        )
+
+        response = client.get(
+            "/variables",
+            params={
+                "search": "income",
+                "tax_benefit_model_name": "policyengine-us",
+            },
+        )
+        assert response.status_code == 200
+        assert len(response.json()) == 1
+
+
+# ---------------------------------------------------------------------------
+# GET /variables/{id} - label in single variable response
+# ---------------------------------------------------------------------------
+
+
+class TestGetVariableLabel:
+    """Tests that label is returned when fetching a single variable."""
+
+    def test_label_in_get_response(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """GET /variables/{id} should include the label field."""
+        var = create_variable(
+            session,
+            us_model_version,
+            name="employment_income",
+            label="Employment income",
+        )
+
+        response = client.get(f"/variables/{var.id}")
+        assert response.status_code == 200
+        assert response.json()["label"] == "Employment income"
+
+    def test_null_label_in_get_response(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """GET /variables/{id} should return null for missing label."""
+        var = create_variable(
+            session,
+            us_model_version,
+            name="age",
+            label=None,
+        )
+
+        response = client.get(f"/variables/{var.id}")
+        assert response.status_code == 200
+        assert response.json()["label"] is None
+
+
+# ---------------------------------------------------------------------------
+# POST /variables/by-name - label in batch lookup
+# ---------------------------------------------------------------------------
+
+
+class TestVariablesByNameLabel:
+    """Tests that label is included in by-name lookup responses."""
+
+    def test_label_in_by_name_response(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """POST /variables/by-name should include the label field."""
+        create_variable(
+            session,
+            us_model_version,
+            name="employment_income",
+            label="Employment income",
+        )
+
+        response = client.post(
+            "/variables/by-name",
+            json={"names": ["employment_income"], "country_id": "us"},
+        )
+        assert response.status_code == 200
+        data = response.json()
+        assert len(data) == 1
+        assert data[0]["label"] == "Employment income"
+
+    def test_mixed_labels_in_by_name_response(
+        self, client, session, us_model_version  # noqa: F811
+    ):
+        """Variables with and without labels should both be returned correctly."""
+        create_variable(
+            session,
+            us_model_version,
+            name="employment_income",
+            label="Employment income",
+        )
+        create_variable(
+            session,
+            us_model_version,
+            name="age",
+            label=None,
+        )
+
+        response = client.post(
+            "/variables/by-name",
+            json={"names": ["employment_income", "age"], "country_id": "us"},
+        )
+        assert response.status_code == 200
+        data = response.json()
+        assert len(data) == 2
+
+        by_name = {v["name"]: v for v in data}
+        assert by_name["employment_income"]["label"] == "Employment income"
+        assert by_name["age"]["label"] is None
+
+
+# ---------------------------------------------------------------------------
+# Country isolation for labels
+# ---------------------------------------------------------------------------
+
+
+class TestVariableLabelCountryIsolation:
+    """Tests that label search respects country boundaries."""
+
+    def test_search_by_label_isolated_by_country(
+        self,
+        client,
+        session,
+        us_model_version,  # noqa: F811
+        uk_model_version,  # noqa: F811
+    ):
+        """Searching by label should only return variables from the specified country."""
+        create_variable(
+            session,
+            us_model_version,
+            name="state_income_tax",
+            label="State income tax",
+        )
+        create_variable(
+            session,
+            uk_model_version,
+            name="council_tax",
+            label="Council tax",
+        )
+
+        us_response = client.get(
+            "/variables",
+            params={
+                "search": "tax",
+                "tax_benefit_model_name": "policyengine-us",
+            },
+        )
+        uk_response = client.get(
+            "/variables",
+            params={
+                "search": "tax",
+                "tax_benefit_model_name": "policyengine-uk",
+            },
+        )
+
+        us_names = {v["name"] for v in us_response.json()}
+        uk_names = {v["name"] for v in uk_response.json()}
+
+        assert "state_income_tax" in us_names
+        assert "council_tax" not in us_names
+        assert "council_tax" in uk_names
+        assert "state_income_tax" not in uk_names