Which European countries have the highest and lowest salaries?

EU labour regulations are generally quite strong, with an emphasis on individual working conditions and labour rights, right to information, anti-discriminatory laws and job security.

However, when it comes to salaries and wages across EU member states, there are still significant variations, depending on a number of factors, such as labour laws, demand, inflation and more. According to Eurostat, in 2022, the average annual wages ranged from €106,839.33 in Switzerland to €12,923.66 in Bulgaria.

The highest paying countries in 2022 were Switzerland (€106,839), Iceland (€81,942), Luxembourg (€79,903), Norway (€74,506) and Belgium (€70,297), whereas the lowest payers were Bulgaria (€12,923), Romania(€14,500), Croatia(€17,842), Hungary(€18,274) and Poland (€18,114).

Eurostat highlights in this report that the average hourly labour cost in the EU was €30.5. Average annual salaries for single employees without children came in at €26,136. Working couples with two children clocked in an average of €55,573 yearly.

The unadjusted gender pay gap was 12.7% in 2021, with the largest gap being seen in Estonia, at 20.5% and the smallest gap being in Luxembourg at -0.2%. However, according to the European Commission, the pay gap increased to 13% in 2023.

Back in 2020, the European Commission announced a strategy to attempt to bridge this gap by 2025. This was followed by the commission launching the Pay Transparency Directive in June 2023, with a €6.1 million fund to help implement the same. This made it easier for employees to recognise pay discrimination, as well as functioned as a guideline for employers.

Average annual net salaries have increased slightly over the years for both the EU and the Euro area but not as much as might have been