Where Do People Earn the Most in the EU?
Salaries in Europe vary significantly. The same applies to the cost of living. The question is – which countries offer the highest salaries, and where are those salaries really worth the most?
The most relevant indicator used is the average adjusted gross salary of a full-time employee, calculated annually by Eurostat and converted into monthly amounts by Euronews.
Denmark is the only country besides Luxembourg that has surpassed the €5,000 mark, with an average of €5,634. It is followed by Ireland (€4,890) and Belgium (€4,832). In the group of countries with salaries above €4,000 are Austria (€4,542), Germany (€4,250), and Finland (€4,033).
Ten Countries Below €2,000
Out of 26 EU member states analyzed (excluding the Netherlands due to missing data), as many as ten countries have an average salary below €2,000, and in four countries the salary is under €1,500.
Poland is close to that threshold with €1,505, while Romania, Greece, and Hungary range around €1,400.
Big Differences Even Among the Largest EU Economies
Among the four largest EU economies, Germany leads with €4,250, followed by France (€3,555). Italy (€2,729) and Spain (€2,716) are more than €400 below the EU average.
According to OECD data, which includes countries outside the EU, Switzerland offers the highest average salary in Europe – as much as €8,104 per month. Norway stands at €5,027, while the United Kingdom has €4,220.
The Netherlands, although not included in the Eurostat analysis, has a salary of €4,629 according to other sources.
Turkey has the lowest average salary in Europe – only €873, which is below the psychological threshold of €1,000.
When purchasing power is taken into account, the picture changes.
Nominal salary differences shrink significantly when using purchasing power standards (PPS), which eliminate the impact of price differences between countries.
However, large differences still exist. Nominally, the highest salary is six times greater than the lowest. When using PPS, this ratio drops to 2.6 times.
The average salary in the EU by PPS is €3,155. The highest is in Luxembourg (€4,479 by PPS), followed by Belgium (€4,038), Denmark (€3,904), Germany (€3,898), and Austria (€3,851).
At the bottom of the list are Slovakia, Bulgaria, and Hungary, all below €2,100 by PPS standards. Greece has the lowest value at €1,710.
Interestingly, Romania and Turkey perform much better in the PPS context – Turkey has €2,413 by PPS.
Why Are Salaries Higher in Some Countries?
Experts emphasize that productivity and workers’ bargaining power are key factors.
Dr. Sotiria Theodoropoulou from the European Trade Union Institute states that countries with larger industrial or financial sectors, as well as high technology, record higher productivity and, accordingly, higher wages.
Additionally, labor market institutions and the strength of trade unions play a key role in income distribution.
Who Increased Their Salaries the Most in the Past Five Years?
Between 2018 and 2023, the average salary increased in all 26 EU countries. Across the Union, the monthly salary rose by €507, meaning an annual increase of €6,708, or 19%.
Lithuania recorded the highest relative growth – as much as 102%, while Sweden had the lowest – only 4%.
Among the major economies, growth was modest: Spain (19%), Germany (18%), France (14%), and Italy (10%).
In absolute terms, the biggest increase was in Luxembourg (€1,291), followed by Lithuania (€1,141). Greece had the smallest increase (€91).
Western and Northern Europe still offer the highest wages, both nominally and in terms of purchasing power. However, Eastern and Southern European countries are achieving faster wage growth, which may indicate a gradual narrowing of the gap – at least in the long term, writes B92.
