Gross salaries will not be the best measure for evaluating European international locations as a result of private revenue tax and worker social safety contributions range extensively. Some international locations additionally present extra beneficiant help to households with kids. Subsequently, web annual earnings present a extra helpful indicator for comparability.
So, which European international locations provide the best web common earnings? The place do folks earn probably the most on common throughout Europe?
Annual web earnings differ considerably throughout Europe, even when adjusted for buying energy in line with Eurostat. In 2024, annual web earnings ranged from €11,074 in Bulgaria to €50,410 in Luxembourg throughout the EU. The EU common was €29,573
These figures apply to a single particular person with out kids incomes 100% of the typical incomes. Different choices are mentioned beneath.
High earnings discovered exterior the EU
With out there information for 3 EFTA international locations and the EU candidate nation Turkey, the best determine rises to €85,631 in Switzerland, adopted by €57,573 in Iceland. Norway additionally ranks fifth with €47,232, indicating the dominance of non-EU international locations in web earnings.
Different Nordic international locations additionally carry out properly. Denmark (€43,913), Finland (€36,877), and Sweden (€36,147) all rank above the EU common.
Western and Northern European international locations lead throughout the EU. Following Luxembourg, the Netherlands (€47,892) and Eire (€46,208) report the best web earnings amongst EU member states.
Southern and Jap Europe lag behind
Southern European international locations like Italy (€24,797), Spain (€24,571), and Greece (€18,709) fall considerably beneath the EU common. Jap member states similar to Romania (€12,655), Bulgaria (€11,074), and Hungary (€13,883) report the bottom web earnings within the bloc. Turkey (€11,440) stands simply above Bulgaria in web earnings.
Within the massive 4, Germany leads; Italy and Spain beneath EU common
Internet earnings for the EU’s 4 largest economies are as follows: Germany leads with €39,594, adopted by France at €32,354. Italy (€24,797) and Spain (€24,571) fall properly beneath the EU common.
When adjusted for buying energy requirements (PPS), web annual earnings ranged from 16,784 in Slovakia to 40,948 within the Netherlands, with an EU common of 28,906.
East-West divide in buying energy
When non-EU international locations are included, Switzerland leads by a major margin with 48,331 PPS, adopted by Norway with 38,712 PPS, putting it third after the Netherlands. Luxembourg (37,630 PPS) and Austria (37,359 PPS) full the highest 5.
The info signifies an East-West divide in buying energy, with most Jap, Baltic, and Balkan international locations underperforming.
Portugal is an outlier—geographically Western however economically grouped with Jap international locations when it comes to buying energy, with a PPS stage beneath 20,000.
Buying energy narrows the hole, but persists
In nominal phrases, there’s a vital disparity in web annual earnings throughout EU international locations. The hole between the best and lowest—Luxembourg and Bulgaria—is greater than 4.5 occasions. Nonetheless, when adjusted for buying energy requirements (PPS), this distinction narrows to 2.4 occasions, between Slovakia and the Netherlands.
Among the many EU’s ‘Huge 4’ economies, Germany is the one one with a PPS stage above the EU common.
Internet earnings rise for households with kids
Typically, households with kids have increased web earnings than these with out. For instance, whereas a single particular person with out kids has web earnings of €29,573, a one-earner couple with two kids earns €35,656. This distinction stems from tax advantages and household allowances.
The one exception is Turkey, the place web earnings are the identical for each family sorts.
In Cyprus, Finland, Norway, Spain, and Sweden, households with kids nonetheless earn extra, however the distinction is comparatively small—lower than 10%.
Households with kids see the best benefit in Slovakia, Poland, Luxembourg, and Belgium, the place web earnings are over 40% increased than these of childless households. For instance, in Slovakia, web earnings rise from €14,070 for a single particular person with out kids to €19,851 for a one-earner couple with two kids.
Two-earner {couples} with two kids usually have increased web earnings than these with out kids. Nonetheless, the revenue benefit is smaller in comparison with that of one-earner {couples} with two kids. Within the EU, they earn a mean web revenue of €63,523.
Internet earnings: Definition and why they matter
Common annual web earnings signify the revenue remaining after deducting private revenue taxes and worker social safety contributions from gross annual earnings, with any relevant household allowances added. These earnings can range relying on household circumstances—similar to whether or not an individual is single or married, and what number of dependent kids they’ve.