Average wages across Europe: Countries with the highest and lowest salaries
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Euronews Business takes a closer look at annual gross average wages across Europe, based on the OECD's 2026 report. The figures reveal significant disparities both in nominal and purchasing power terms.
Average wages differ sharply across Europe in 2025. When purchasing power is taken into account, the gap narrows. But the divide between the continent's highest- and lowest-paying countries remains deep.
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So, which countries pay the most? Where are the highest and lowest wages in Europe? How does purchasing power change the picture of salaries?
According to the OECD’s Taxing Wages 2026 report, the annual gross average wages range from €18,590 in Turkey to €107,487 in Switzerland. The data includes 27 European countries, 22 of which are EU members.
Switzerland is the only country where gross average wages exceed €100,000.
Iceland ranks second at €85,950. Luxembourg tops the EU with €77,844, placing third overall.
Denmark (€71,961) and the Netherlands (€69,028) complete the top five. Norway, at €68,420, is not far behind.
Among Europe's five largest economies, Germany leads with €66,700, closely followed by the UK at €65,340. The other three major economies fall significantly below.
France stands at €45,964, Italy at €36,594, and Spain at €32,678. Average wages in Germany and the UK are more than double those in Spain.
Austria (€63,054), Belgium (€62,348), Ireland (€60,258), Finland (€55,462) and Sweden (€50,338) fall between these two groups, all above €50,000.
Nine EU countries fall below the €30,000 threshold
Slovakia has the lowest annual wages in the EU at €19,590. Nine of the 22 EU countries in the list fall below €30,000.
Hungary (€21,257), Latvia (€21,321), Czechia (€23,685), Portugal (€24,254) and Poland (€24,490) are all below €25,000. Estonia (€25,603), Greece (€26,563) and Lithuania (€28,474) sit above that threshold but remain under €30,000.
In nominal terms, Northern and Western European countries dominate the upper end of the rankings. Southern and Eastern Europe cluster toward the bottom.
What drives wage differences between countries?
The International Labour Organization (ILO) experts who talked to Euronews Business say wage differences across Europe largely reflect three factors: productivity and economic structure, labour market institutions, and cost of living.
Countries with high-value-added sectors such as finance and technology tend to pay more, as do those with strong trade unions and collective bargaining. Higher price levels also generally push nominal wages up.
In purchasing power terms, the wage gap across Europe narrows compared to nominal figures.
Purchasing power parity (PPP) are the rates of currency conversion that equalise the purchasing power of different currencies by eliminating the differences in price levels between countries. The figures here are based on US dollars, as euro-based PPP data is not released yet.
In PPP terms, annual gross average wages range from 38,118 in Slovakia to 106,532 in Switzerland. Germany (93,985), Luxembourg (93,203) and the Netherlands (92,905) all exceed 90,000. Denmark (88,454) and Norway (87,722) follow closely.
Among Europe's five largest economies, the rankings are unchanged from nominal terms. However, the distances between them shift. The UK stands at 82,329 and France at 67,273, while Italy reaches 60,503 and Spain at 57,517.
Turkey and Germany the biggest winners in PPP rankings
When nominal and PPP rankings are compared, Turkey is the biggest mover, jumping nine places from last to 18th. Germany also rises five spots, from 7th to 2nd.
The biggest fallers are Iceland, dropping from 2nd to 9th, and Estonia, from 20th to 25th.
The average wage estimates refer to full-time employees working in selected industry sectors, mainly public. They cover most of the economy — including manufacturing, construction, retail, transport, finance, and other business services — but exclude agriculture, public administration, education, and health.
Personal income tax rates vary significantly across Europe, meaning net wages can look quite different from gross figures.
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