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Curious about the best-paying European countries? Euronews Business, using Eurostat data, reveals salaries across Europe, adjusting for purchasing power. While countries like Luxembourg and Denmark offer high wages, others, like Cyprus, struggle with lower pay despite rising costs of living.
Who’s winning the salary game?
Nine countries surpassed the EU average, including Luxembourg, Denmark (€67,604), Ireland (€58,679), Belgium (€57,989), Austria (€54,508), and Germany (€50,988). Finland, Sweden, and France also exceeded the EU average. In contrast, Bulgaria, Greece, Romania, Poland, and Slovakia had annual salaries under €20,000, while Spain and Italy hovered around the EU average of €32,500.
The real picture: Purchasing power standard (PPS)
Adjusting for purchasing power gives a clearer picture of how far a salary goes. The salary gap between Luxembourg and Bulgaria is smaller when adjusted for living costs. Greece, while having one of the lowest nominal salaries, ranked lowest in PPS with an average salary of €20,525.
The real picture: Purchasing power standard (PPS)
Adjusting for purchasing power gives a clearer picture of how far a salary goes. The salary gap between Luxembourg and Bulgaria is smaller when adjusted for living costs. Greece, while having one of the lowest nominal salaries, ranked lowest in PPS with an average salary of €20,525.
Who’s winning in PPS?
Seven countries reported salaries above the EU PPS average. Luxembourg led, followed by Belgium, Denmark, Germany, Austria, Ireland, and France. Italy had the lowest PPS-adjusted salary at €33,723, with Spain at €35,774, both below the EU average.
Key trends in salary rankings
Northern and Western Europe dominate salary figures, but the gap narrows with living costs. Eastern Europe is closing the gap, while Southern Europe, with low wages and limited purchasing power, faces challenges.
Salary shifts from 2022 to 2023
Salaries grew by an average of €2,225 (6%) across the EU. Luxembourg, Belgium, and Ireland saw increases over €4,000. Romania, Hungary, Poland, Latvia, and Croatia had the largest percentage increases (over 15%), while Malta, Italy, Greece, and Cyprus saw modest gains (under 5%).
What’s “enough” to live on in the EU?
Eurostat's “adjusted full-time salary per employee” metric helps set benchmarks for high-skilled work permits. In 2023, 17% of EU workers aged 20-64 were part-time employees, with higher rates in Germany (29%) and the Netherlands (39%).
Cyprus: Struggling with low wages
Despite being a popular tourist destination, Cyprus faces challenges with wages below the EU average. Rising costs of living make it harder for local workers to maintain purchasing power. With modest salary growth, Cyprus remains caught between income growth and increasing costs.
