Discover the highest paying countries in Europe for 2025. Find out how salaries compare across the EU, adjusted for purchasing power, and see how living costs influence wage disparities.
Average Salary Rankings in Europe – Which Countries Pay the Highest?
Have you ever wondered which European countries pay the most in terms of salary? As 2025 approaches, the disparities in wages across Europe are still vast. While living costs differ significantly, it’s important to compare salaries when adjusted for purchasing power standards (PPS).
Eurostat’s newly calculated metric for the “average annual full-time adjusted salary per employee” provides a comprehensive view of how much people earn across different European nations. This metric is derived from the average gross salary of a full-time job, offering a clear picture of income disparities across the continent.
Average Salary Rankings in Europe: Top Earners of 2023
In 2023, Luxembourg emerged as the highest-paying country in Europe, with an average annual full-time adjusted salary of €81,064. Other countries such as Denmark (€67,604), Ireland (€58,679), and Belgium (€57,989) also saw impressive salary figures. These nations, along with Austria and Germany, reported adjusted salaries above €50,000, making them the leading countries for high-paying jobs in Europe.
The EU’s average salary for 2023 was €37,863, with nine member states reporting salaries above this figure. However, the wage gap is significant, as 17 countries reported salaries below the EU average. Notably, countries like Bulgaria, Greece, and Romania reported much lower figures, with Bulgaria having the lowest at just €13,503.
Adjusted for Purchasing Power: Which Countries Fare Better?
When adjusted for purchasing power standard (PPS), the wage gap between high- and low-paying countries narrows. The purchasing power parity (PPP) metric eliminates the effects of price level differences across nations, providing a more accurate comparison.
For example, the nominal salary difference between the highest and lowest paying countries can be up to six times, but when adjusted for PPS, this gap reduces to 2.5 times. Luxembourg remains at the top, with a PPS salary of 53,745, while Greece, despite ranking low in nominal salary, holds the lowest PPS ranking at €20,525.
Key Trends in European Salary Rankings
Northern and Western Europe dominate the salary rankings, with countries like Luxembourg, Belgium, and Ireland consistently leading the charge. However, the difference in purchasing power becomes more evident when adjusting for local living costs.
Eastern Europe shows slight improvement in PPS-adjusted rankings, but average salaries remain well below the EU average. Countries such as Romania and Bulgaria continue to struggle with lower wages and limited purchasing power. Meanwhile, Southern Europe faces challenges in both nominal salaries and PPS rankings, with countries like Italy and Spain earning below the EU average.
Year-on-Year Changes: How Have Salaries Evolved from 2022 to 2023?
The salary trend from 2022 to 2023 saw an increase of €2,225 (6%) across the EU. Luxembourg, Belgium, and Ireland reported the most significant increases, each exceeding €4,000 in salary growth. On the other hand, countries like Malta, Greece, and Italy saw minimal changes, with increases of less than €1,000.
Romania, Hungary, Poland, and Croatia recorded the highest percentage increases, with salaries rising by over 15%. This reflects the ongoing improvement in wages across Eastern Europe, although gaps still persist when compared to the Western and Northern regions.
Living Decently in the EU: Salary Requirements and Part-Time Work
Eurostat’s salary calculation also serves as a threshold for granting work permits to high-skilled workers under the Blue Card Directive. In essence, these figures represent what is considered a salary sufficient for a decent living in a particular country.
Interestingly, 17% of employees in the EU worked part-time in 2023, with some countries, like Germany and the Netherlands, seeing even higher percentages of part-time workers. This factor significantly impacts the average salary figures, as part-time wages are adjusted into full-time equivalents.
What to Expect in 2025 and Beyond
As we look toward 2025, the disparities in average salaries across Europe will likely persist. Northern and Western European countries will continue to lead the salary rankings, but adjustments for purchasing power will offer a more nuanced view of how much people can actually afford with their income. For those considering relocating for work or education, understanding these figures will help make better financial decisions.
