Romania is among the countries with the lowest earnings, although adjusting for purchasing power places it in a better position, according to an analysis of Eurostat and Organization for Economic Co-operation and Development (OECD) data for the year 2023.
According to Eurostat and OECD data for 2023, the adjusted gross average monthly salary for full-time employees ranges from EUR 1,125 in Bulgaria to EUR 6,755 in Luxembourg, with the EU average standing at EUR 3,155, according to Euronews.
Western and Northern Europe dominate the ranking of the highest average salaries. Luxembourg stands out with the highest salary in the EU, followed by Denmark (EUR 5,634), Ireland (EUR 4,890), Belgium (EUR 4,832), Austria (EUR 4,542), Germany (EUR 4,250), and Finland (EUR 4,033). In total, seven EU countries offer salaries of over EUR 4,000 per month.
At the opposite end, ten of the 26 countries analyzed have salaries below EUR 2,000. Of these, Romania, Greece, Hungary, and Bulgaria, have average salaries under EUR 1,500. Poland is situated just above this threshold, with EUR 1,505, while other large Southern European economies, Italy (EUR 2,729) and Spain (EUR 2,716), are more than EUR 400 below the EU average.
According to the OECD, Switzerland has the highest average salary in Europe: EUR 8,104. Norway (EUR 5,027) and the United Kingdom (EUR 4,220) also rank above many EU states. The Netherlands, although missing from Eurostat data, are included by the OECD with an average salary of EUR 4,629, placing it among the European leaders. At the other end, Turkey, a candidate country for EU accession, has the lowest average salary, EUR 873.
Salary disparities are somewhat reduced when adjusted for purchasing power standard (PPS), a method that accounts for the cost of living in each country. In this way, the difference between the highest and lowest salary decreases from a 6:1 ratio to 2.6:1. In PPS terms, average salaries in the EU range from EUR 1,710 in Greece to EUR 4,479 in Luxembourg.
Romania climbs in the ranking, placing above Bulgaria, Hungary, and Slovakia, with an average salary in PPS of approximately EUR 2,400.
Belgium (EUR 4,038 PPS), Denmark (EUR 3,904 PPS), Germany (EUR 3,898 PPS), and Austria (EUR 3,851 PPS) complete the top.
Salaries have risen across the EU, but not uniformly, due to rising productivity and workers’ bargaining power. Between 2018 and 2023, average salaries increased in all 26 member states analyzed. The EU average rose by EUR 507 per month (equivalent to EUR 6,708 annually), representing an increase of 19%. Lithuania recorded the highest percentage increase (102%) and one of the highest in absolute terms, EUR 1,141 per month. Luxembourg increased by EUR 1,291, while Greece had the smallest increase, only EUR 91 per month.
radu@romania-insider.com
(Photo source: Poian Flaviu | Dreamstime.com)
