When it comes to big decisions, like changing jobs, many leave them until the beginning of the new year. Given that 2026 is just around the corner, Eurostat data can be useful to anyone who is thinking about working in one of the European Union countries.
According to the latest Eurostat statistics, the average annual salary per employee in the EU for 2024 is EUR 39,808. However, the differences between the countries are large: from 15,387 euros in Bulgaria to as much as 82,969 euros in Luxembourg, which is more than five times the difference.
Apart from Luxembourg, Denmark, Ireland, Belgium, Austria and Germany also earn more than 50,000 euros per year. Croatia is below the average with 23,446 euros, while Greece and Hungary have salaries below 20,000 euros.
Eurostat notes that the figures are adjusted for full-time employees, as in many countries a large number of people work part-time. It is clear that wages are higher in Western and Northern Europe and lower in Eastern and Southeastern Europe.
Reasons for the differences
Economist Julia De Lasari from the International Labor Organization (ILO) emphasizes that the economic structure and productivity of a country directly affect the level of wages. “Higher productivity allows the state to keep more wages,” he told Euronews Business.
Countries with strong high-value-added sectors, such as finance, IT and advanced manufacturing, tend to have higher wages than those where employment is concentrated in lower-value-added sectors, such as agriculture or basic services.
Also, the presence and strength of trade unions, coverage by collective agreements and the legally prescribed minimum wage significantly affect the level of income. Dr. Agnieszka Piasna from the European Trade Union Institute (ETUI) points out that low levels of unionization and higher unemployment often reduce workers’ bargaining power, which explains low wages in many Central and Eastern European countries.
Purchasing power changes perspective
Wage differences become smaller when purchasing power (PPM) is taken into account. A unit of SKM theoretically enables the purchase of the same amount of goods and services in each country.
When wages are adjusted for SKM, they range from 21,644 in Greece to 55,051 in Luxembourg, reducing the difference between the highest and the lowest to 2.5 times. Other countries with high wages in terms of purchasing power are Belgium, Denmark, Germany and Austria. The five lowest ranked countries are Greece, Slovakia, Hungary, Bulgaria and Estonia.
Lasari emphasizes that the cost of living and the price level have a major impact on nominal wages. The ranking of some countries changes significantly when SKM is taken into account. For example, Romania rises from 22nd to 13th place, while Estonia falls from 16th to 22nd place.
If the current growth trend continues, the average salary in the EU is expected to reach 41,600 euros in 2025, and 43,400 euros in 2026, although growth rates will vary between countries.
(Biznis.ba)
