Wages across Europe show considerable variation, with substantial differences in both nominal salaries and cost of living. A useful indicator in assessing these disparities is the average adjusted full-time salary of employees, calculated by Eurostat based on annual gross income and expressed as a monthly figure by Euronews.

In 2023, Bulgaria recorded the lowest average adjusted monthly salary in the EU, at €1,125, while Luxembourg led with €6,755. The EU average stood at €3,155. Denmark was the only other EU country with an average salary exceeding €5,000, at €5,634. Other high-paying countries included Ireland (€4,890), Belgium (€4,832), Austria (€4,542), Germany (€4,250), and Finland (€4,033).

Ten EU countries reported average salaries below €2,000, with four nations—Poland (€1,505), Romania, Greece, and Hungary—falling below €1,500. In the largest EU economies, Germany (€4,250) maintained the highest salary, followed by France (€3,555). Italy (€2,729) and Spain (€2,716) trailed below the EU average by over €400.

OECD data, which includes non-EU countries, reveals Switzerland as the highest-paying European country with an average salary of €8,104. Norway followed with €5,027, and the UK registered €4,220. The Netherlands, with €4,629, ranked among the top EU countries for wages. Turkey recorded the lowest average wage at €873, making it the only country below the €1,000 threshold.

While Western and Northern Europe generally report higher wages, Southern and Eastern Europe remain at the lower end of the scale. The gap between the highest and lowest nominal wages in the EU is sixfold, but when adjusted for purchasing power standards (PPS), the gap narrows to 2.6 times. PPS eliminates the impact of price differences, using a theoretical currency unit to ensure comparable purchasing power across countries.

In the EU, average wages adjusted for PPP range from €1,710 in Greece to €4,479 in Luxembourg. The EU average remains €3,155. Belgium, Denmark, Germany, and Austria also rank among the top five in terms of PPP, with salaries ranging from €3,851 to €4,038. On the lower end, Slovakia, Bulgaria, and Hungary remain below €2,100 in PPP.

OECD data also underscores Switzerland's dominance with a PPP salary of €4,412, followed by the Netherlands and Norway with around €3,800 each. The UK registered €3,357 in PPP terms, while Turkey and Romania ranked higher on this indicator than in nominal terms.

Dr. Sotiria Theodoropoulou, Head of the European Economic, Employment and Social Policies Unit at the European Trade Union Institute, explained that productivity is a key factor influencing wage levels. Countries with strong industrial or financial sectors, or those with high-tech industries, tend to report higher salaries. Labor market institutions also play a role, as strong collective bargaining and policies enhancing workers' bargaining power can help translate productivity gains into higher wages.

Over the past five years, nominal wages have risen in all 26 EU countries, with the average monthly wage increasing by €507, representing a 19% increase. Lithuania recorded the highest percentage increase at 102%, while Sweden saw the smallest rise at just 4%.

In absolute terms, the increase ranged from €91 per month in Greece to €1,291 per month in Luxembourg. Lithuania also reported a substantial increase of €1,141 per month. Eurostat plans to release wage data for 2024 by the end of 2025.