European Salary Rankings: Which Countries Pay the Most?
The start of the year is a common time for people to change jobs, and salary is often a major factor in that decision. Are you curious about what people earn in other European countries? Euronews has a comparison for you.
January is popular for job moves because of New Year’s resolutions and new company hiring plans for the first quarter.
Salary is an important factor for many workers when choosing a new job. Pay varies a lot across Europe, not only between industries but also between countries, whether you look at the numbers directly or adjust them for the cost of living.
Thinking about moving to a new country or just curious about your neighbors’ salaries? According to Eurostat’s 2024 data, here’s how salaries differ across Europe.
Average Salary in the EU
The average annual salary in the EU is €39,808. Salaries range from €15,387 in Bulgaria to €82,969 in Luxembourg — more than five times higher.
Other countries with average salaries above €50,000 include Denmark, Ireland, Belgium, Austria, and Germany.
At the lower end, in addition to Bulgaria, salaries are under €20,000 in Greece and Hungary.
Many people work part-time, but Eurostat adjusts the data to show what salaries would be if everyone worked full-time.
Overall, salaries are higher in Western and Northern Europe and lower in Eastern and Southeastern Europe.
Why Salaries Differ
Giulia De Lazzari, an economist at the International Labour Organization (ILO), says that a country’s economy and productivity are key reasons for differences in pay.
“Countries with higher productivity can afford higher wages,” she told Euronews Business.
Lazzari said that countries with more high-value industries, like finance, IT, and advanced manufacturing, usually have higher wages. Countries where most jobs are in lower-value industries, like agriculture, textiles, or basic services, tend to have lower wages.
She added that wages are also affected by the strength of trade unions, the reach of collective agreements, and the level of minimum wages set by law.
Dr. Agnieszka Piasna, a senior researcher at the European Trade Union Institute (ETUI), explained that low union membership and high unemployment weaken workers’ bargaining power. She noted this is a reason why many Central and Eastern European countries, which have some of the EU’s lowest union rates, also have low wage shares.
Average salaries in purchasing power
The gap in salaries is smaller when we adjust for purchasing power, which accounts for the cost of living in each country.
One unit of purchasing power can theoretically buy the same amount of goods and services anywhere.
Full-time adjusted salaries range from €21,644 in Greece to €55,051 in Luxembourg. This makes the ratio between the highest and lowest salaries 2.5.
Besides Luxembourg, the highest-paying countries are Belgium, Denmark, Germany, and Austria, all over €48,500 in purchasing power. The lowest five are Greece, Slovakia, Hungary, Bulgaria, and Estonia, all below €28,000.
Lazzari noted that the cost of living affects wages. Countries with higher prices generally have higher nominal wages.
Some countries’ rankings change when comparing euro values to purchasing power. For example, Romania moves from 22nd to 13th place, while Estonia drops from 16th to 22nd once cost differences are considered.
If current trends continue, the EU’s average salary could reach €41,600 in 2025 and €43,400 in 2026, although wage growth will vary widely between countries.
Also Read:
How Lifestyle Businesses in Europe Are Attracting Global Investors
European CEOs Transforming the Beauty Business Landscape
Europe Food Prices: Most Expensive vs Cheapest Countries