Income inequality is going down across the EU, but significant differences remain in certain countries.
In 2023, Eurostat reported the average salary varied from €13,503 in Bulgaria to €81,064 in Luxembourg, with an EU average of €37,863.
Other high earners apart from Luxembourg include Denmark (€67,604), Ireland (€58,679), Belgium (€57,989), Austria (€54,508), and Germany (€50,988). Finland, Sweden, and France also ranked above the EU average.
Below the average were Bulgaria (€13,503), Hungary (€16,895), Greece (€17,013), Romania (€17,739), Poland (€18,054), and Slovakia (€19,001).
Salary disparities narrow
Purchasing power standards (PPS) however offers a fairer salary comparison, according to Euronews, as living costs vary. One PPS unit can buy the same amount of goods and services across countries.
When salaries are adjusted for PPS, Euronews found that gaps narrow substantially, but some differences remain. In nominal terms, Luxembourg's salary was six times higher than Bulgaria's, but only 2.5 times higher when adjusted for PPS.
In PPS, Greece ranked the lowest with 20,525, while Luxembourg held the highest with 53,745. Seven countries, including Luxembourg, Belgium, Denmark, Germany, and Austria, had PPS salaries above 45,000. Ireland and France were also above the EU average with 41,581 and 39,110 PPS, respectively.
Italy and Spain, the EU's 'Big Four,' had lower salaries at 33,723 and 35,774 PPS, respectively, both below the average.
From 2022 to 2023, Sweden saw a decline in average salary by €1,817 (4%) due to currency conversion. EU salaries rose by €2,225 (6%) overall. Luxembourg, Belgium, and Ireland had the highest increases, while salaries in Malta, Greece, and Italy grew less than €1,000. Romania, Hungary, Poland, Latvia, and Croatia had over 15% increases.
