Einar H. Dyvik
Research expert covering Nordics and global data for society, economy, and politics
Earnings and wages in Europe - statistics & facts
In 2023, the average net earnings for a full-time employee in the European Union reached 28,217 euros per year, marking an increase of 33 percent of their salary between 2018 and 2023 and a growth of approximately 2,000 euros from 2022 to 2023. While nominal wages in the Eurozone have typically grown by around two percent annually, real wages saw a sharp decline of 5.2 percent in 2022 due to the economic fallout from the COVID-19 pandemic. However, in 2024, real wages rebounded, registering a 2.8 percent increase across the EU—a positive sign for Europeans, considering how their living conditions were affected by the high inflation recorded in 2022.
Geographically, countries with the highest wages tend to be in Northern and Western Europe, with nations such as Iceland, Switzerland, Belgium, Denmark, Austria, and the Netherlands all reporting average annual salaries exceeding 60,000 U.S. dollars. In contrast, Eastern European countries generally have the lowest wages on the continent. Non-EU nations like Ukraine, Belarus, Russia, and Moldova have particularly low wage levels, with net minimum wages falling below 300 euros per month.
Another key determinant of income inequality has been gender. However, while the gender pay gap remains persistent in Europe, it has shown signs of narrowing in recent years, decreasing from more than 15 percent in 2010 to 12 percent in 2023. At the same time, women have claimed a growing share of the total labor income, with Portugal, Latvia, and Lithuania being the countries where women earned almost half of the total income.
In sum, while nominal and real wages have recovered from the economic shocks of recent years, significant differences in average wages persist across Europe, particularly between Eastern Europe and Northern and Western Europe. Additionally, income inequality remains an issue despite progressive taxation and social policies, with wealth concentration continuing to rise at the top.
Which country has the highest salaries in Europe?
Among Europe’s largest economies, Germany had the highest average annual salary, reaching nearly 66,000 euros, followed by France and the United Kingdom, where average salaries were close to 60,000 euros. In contrast, Italy and Spain had significantly lower wage levels, averaging around 50,000 euros per year. However, the highest salaries in Europe were found in Luxembourg, where annual earnings averaged approximately 90,000 U.S. dollars, above the average salary of the U.S., that was above the biggest economies in Europe, with more than 5,900 dollars.Geographically, countries with the highest wages tend to be in Northern and Western Europe, with nations such as Iceland, Switzerland, Belgium, Denmark, Austria, and the Netherlands all reporting average annual salaries exceeding 60,000 U.S. dollars. In contrast, Eastern European countries generally have the lowest wages on the continent. Non-EU nations like Ukraine, Belarus, Russia, and Moldova have particularly low wage levels, with net minimum wages falling below 300 euros per month.
Income inequality in Europe
Despite Europe's highly progressive system of taxes and social transfers—where net earnings are significantly lower than gross wages—income inequality remains a persistent issue. Over the past decades, wealth has become increasingly concentrated at the top, with the share of total national income held by the top 10 percent of earners rising from 31 percent in the early 1980s to over 36 percent today.Another key determinant of income inequality has been gender. However, while the gender pay gap remains persistent in Europe, it has shown signs of narrowing in recent years, decreasing from more than 15 percent in 2010 to 12 percent in 2023. At the same time, women have claimed a growing share of the total labor income, with Portugal, Latvia, and Lithuania being the countries where women earned almost half of the total income.
In sum, while nominal and real wages have recovered from the economic shocks of recent years, significant differences in average wages persist across Europe, particularly between Eastern Europe and Northern and Western Europe. Additionally, income inequality remains an issue despite progressive taxation and social policies, with wealth concentration continuing to rise at the top.
