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Average salaries differ widely across Europe. The cost of living does too. So, which countries offer the highest pay? And how do salaries compare when adjusted for purchasing power standards? 

There are various definitions of salary, wages, and earnings, each reflecting different aspects. The average full-time adjusted salary per employee is particularly useful. 

Eurostat’s calculation is based on the average gross annual salary for a full-time job. Euronews converted these figures into monthly salaries by simply dividing by 12. 

In 2023, the average full-time adjusted monthly salary per employee ranged from €1,125 in Bulgaria to €6,755 in Luxembourg. The EU average was €3,155. 

Denmark is the only EU country besides Luxembourg with a salary over €5,000. It offers €5,634. 

Ireland (€4,890) and Belgium (€4,832) come very close to this threshold.

Austria (€4,542), Germany (€4,250), and Finland (€4,033) also offer salaries above €4,000.

Some 10 of 26 EU countries pay under €2,000

Among the 26 EU countries (excluding the Netherlands due to missing Eurostat data), 10 reported an average gross salary below €2,000. 

In four member states, the average salary was below €1,500. Poland stood just above this level at €1,505. In Romania, Greece, and Hungary, salaries were around €1,400s.

Germany (€4,250) offers the highest average salary among the EU’s four largest economies, followed by France (€3,555). Both Italy (€2,729) and Spain (€2,716) were below the EU average by more than €400.

Eurostat data covers 26 EU countries. While not directly comparable due to methodological differences, OECD’s the average annual wages per full-time equivalent employee includes more European countries.

According to the OECD, the average salary in Switzerland was €8,104, making it the highest-paying country in Europe. Another European Free Trade Association (EFTA) country, Norway, offered an average salary of €5,027. The UK had an average salary of €4,220.

With €4,629, the Netherlands ranks among the top-paying EU countries.

Turkey, an EU candidate country, recorded the lowest average salary at €873, making it the only country below the €1,000 mark.

The general trend shows that Western and Northern European countries lead in salary levels, while Southern and Eastern Europe tend to offer significantly lower nominal wages.

Highest salaries in Europe by purchasing power

The gap in average salaries narrows when measured in purchasing power standards (PPS), as this eliminates the effect of price level differences. PPS is an artificial currency unit, where one unit can theoretically purchase the same amount of goods and services in each country

However, significant disparities remain across the EU. In nominal terms, the highest average salary is six times greater than the lowest. When adjusted for PPS, this gap narrows to a ratio of 2.6. 

In the EU, average salaries in PPS range from €1,710 in Greece to €4,479 in Luxembourg, while the EU average stands at €3,155.

Belgium (€4,038 PPS), Denmark (€3,904 PPS), Germany (€3,898 PPS) and Austria (€3,851 PPS) were also among the top five countries. 

At the bottom, Slovakia, Bulgaria, and Hungary follow Greece, each with average salaries below €2,100 in PPS. 

Romania ranks significantly higher in PPS.

Among the OECD data, Switzerland stands out with a high salary in purchasing power, at €4,412 PPS. The Netherlands and Norway follow, both offering around €3,800 PPS. The UK’s average salary was €3,357 in PPS.

Like Romania, Turkey (€2,413 PPS) holds a significantly better position in this indicator. 

Importance of higher productivity and bargaining power

Explaining the country-level wage differences, Dr. Sotiria Theodoropoulou, head of European, economic, employment and social policies unit at the European Trade Union Institute (ETUI) noted that higher productivity is a material foundation for sustainably higher wages/salaries. She pointed out that economies with more industrial or financial activity tend to be more productive. High-tech industries also usually have higher productivity.

She also emphasised the role of labour market institutions. “More generally, higher bargaining power for workers—whether it comes from strong collective bargaining institutions or/and from policies that provide them with ‘outside options’ in the labour market—make it more likely that productivity gains will be translated into higher wages and labour costs,” she told Euronews.

Which countries saw the biggest rise in average salaries?

Over the last five years (2018–2023), the average full-time adjusted salary increased in nominal euro terms across all 26 EU countries.

Across the EU, the average monthly salary rose by €507, adding up to an annual increase of €6,708, which represents a 19% rise.

In percentage terms, the increase ranged from just 4% in Sweden to a remarkable 102% in Lithuania.

The rise was notably lower in the EU’s four largest economies: Spain saw a 19% increase, Germany 18%, France 14%, and Italy only 10%.

Nordic EU countries also remained below the EU average, along with Cyprus and Greece. 

In euro terms, the increase in average salaries ranged from €91 per month in Greece to €1,291 per month in Luxembourg. Lithuania also recorded an impressive increase of €1,141 per month.

Eurostat will release the 2024 salary figures in late 2025.