According to Statista, in 2022 there was a significant variation in salaries across Europe, from a peak of €73,642 (per year) in Iceland to a low of €24,067 in Greece. Let's find out in detail in which European countries it is possible to earn more and in which countries the situation is the opposite. 

In which European countries do people earn the most?

The highest salaries per year are recorded in these countries:

  • Iceland: €73 thousand. 
  • Luxembourg: €72 thousand.
  • Switzerland: €67 thousand.
  • Belgium: €64 thousand.
  • Denmark: €59 thousand.

Wage dynamics in Iceland

High wages in Iceland are rooted in a strong private sector backed by collective agreements. COVID-19 benefits and the recovery of hourly wages after the pandemic contribute to this economic resilience. The high cost of living and persistent inflation make Icelandic workers demand higher compensation. Notably, the predominance of labor unions, covering more than 90% of the workforce, plays a decisive role.

Luxembourg's financial strength

Luxembourg's financial and banking sectors drive the country's impressive wage levels. These sectors employ highly educated and in-demand workers, including foreigners. Thanks to a proactive approach to wages, which consists of a biannual review of the social minimum wage, wages remain competitive. Nevertheless, there are differences within industries due to factors such as seniority, education, and work experience.

Where in Europe do people earn the least?

The worst situation is in the following European countries:

  • Greece: €24k. 

The country is still recovering from the consequences of its debt problems, so its path to a fully developed labor market is just beginning.

  • Slovakia: €24 thousand. 

Slovakia, characterized by low labor productivity and remnants of the collapsed Soviet regime, is struggling to raise wages. 

  • Hungary: €26k. 

The crisis in Hungary's technology sector is driving down wages as companies tighten their belts. Historically, the low cost of living has kept pressure on wage growth in check, but rising inflation could herald a change in this trend.

  • Portugal: €29k. 

Portugal faces low labor productivity and a reliance on short-term seasonal workers in the tourism sector.

  • Czech Republic: €31k.

The Czech Republic faces a unique challenge: workers are often hesitant to negotiate wage increases. This cultural phenomenon weakens labor unions, making them less effective in advocating for higher compensation.