In 2024, Northern and Western European countries continue to top the charts for the highest average net earnings in Europe. While the gap between countries narrows when adjusting for purchasing power standards (PPS), significant differences remain.
Gross salaries are often misleading for comparing European earnings due to wide variations in personal income taxes and social security contributions. Additionally, some countries offer more generous support to families with children. Therefore, net annual earnings offer a more accurate comparison.
According to Eurostat, annual net earnings for a single person without children earning the average wage vary dramatically across Europe. In the EU, the range spans from €11,074 in Bulgaria to €50,410 in Luxembourg, with an overall EU average of €29,573.
Including data from three EFTA countries and Turkey (an EU candidate), the highest net earnings are found in Switzerland (€85,631), followed by Iceland (€57,573). Norway also ranks highly at €47,232, showing the prominence of non-EU countries in this ranking.
Among EU nations, Northern and Western European countries lead: Denmark (€43,913), Finland (€36,877), and Sweden (€36,147) exceed the EU average, while the Netherlands (€47,892) and Ireland (€46,208) follow Luxembourg as the highest earners.
Southern European countries like Italy (€24,797), Spain (€24,571), and Greece (€18,709) fall well below the EU average, as do Eastern European countries such as Romania (€12,655), Bulgaria (€11,074), and Hungary (€13,883). Turkey (€11,440) slightly surpasses Bulgaria in net earnings.
For the EU’s four largest economies, Germany leads with €39,594, followed by France at €32,354. Italy and Spain lag behind the EU average.
When adjusted for purchasing power standards, net annual earnings range from 16,784 in Slovakia to 40,948 in the Netherlands, with the EU average at 28,906 PPS. Non-EU countries remain dominant, with Switzerland leading at 48,331 PPS, Norway at 38,712 PPS (third after the Netherlands), followed by Luxembourg (37,630 PPS) and Austria (37,359 PPS).
An East-West divide is evident, with most Eastern, Baltic, and Balkan countries underperforming in purchasing power. Portugal is a notable exception, geographically Western but economically closer to Eastern nations, with a PPS below 20,000.
The disparity in nominal net earnings between the highest (Luxembourg) and lowest (Bulgaria) exceeds 4.5 times. When adjusted for PPS, this difference narrows to 2.4 times, between Slovakia and the Netherlands. Among the ‘Big Four’ EU economies, only Germany’s PPS exceeds the EU average.
Households with children generally earn more due to tax benefits and family allowances. For example, a single person without children earns an average of €29,573, while a one-earner couple with two children earns €35,656.
Turkey is an exception where net earnings remain the same regardless of household type.
In Cyprus, Finland, Norway, Spain, and Sweden, the earnings difference between families with and without children is less than 10%. The greatest advantage for households with children is seen in Slovakia, Poland, Luxembourg, and Belgium, where net earnings rise by over 40%. For instance, Slovak earnings increase from €14,070 for a single person without children to €19,851 for a one-earner couple with two children.
Two-earner couples with two children typically have even higher net earnings, averaging €63,523 in the EU, although their income advantage over childless couples is smaller than that of one-earner families.
