According to the OECD Taxing Wages 2026 report, average annual pre-tax wages range from €18,590 in Turkey to €107,487 in Switzerland. The study includes 27 European countries, of which 22 are EU members.
In second place is Iceland with a figure of 85,950 euros. Luxembourg leads the EU with 77,844 euros and is third in the overall ranking. Denmark (71,961 euros) and the Netherlands (69,028 euros) complete the top five. Norway with 68,420 euros is not far behind them.
Among the five largest economies in Europe, Germany leads with 66,700 euros, followed by the UK with 65,340 euros. The rest are noticeably behind. In France the figure is 45,964 euros, in Italy 36,594 euros and in Spain 32,678 euros.
Austria (63,054 euros), Belgium (62,348 euros), Ireland (60,258 euros), Finland (55,462 euros) and Sweden (50,338 euros) occupy an intermediate position between these two groups, but in all cases we are talking about amounts over 50,000 euros.
Nine EU countries fall below €30,000
Slovakia has the lowest average annual salary in the EU at €19,590. Nine of the 22 EU countries on the list do not reach the €30,000 level.
Hungary (€21,257), Latvia (€21,321), Czech Republic (€23,685), Portugal (€24,254) and Poland (€24,490) remain below the €25,000 mark. Estonia (€25,603), Greece (€26,563) and Lithuania (€28,474) exceed this threshold but are still below €30,000.
What explains the differences in salary levels?
Experts from the International Labor Organization (ILO), interviewed by Euronews Business, note that differences in wage levels in Europe mainly reflect three factors: productivity and economic structure, labor market institutions and the cost of living.
Countries with high value-added industries such as the financial sector and technology tend to pay more, as do nations with strong labor unions and well-developed collective bargaining systems. Higher price levels also tend to push up nominal wages.
When viewed in purchasing power terms, the wage gap across Europe is narrowing relative to nominal wages. Amounts are presented in US dollars.
In PPP (Purchasing Power Parity) terms, the average annual pre-tax salary ranges 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. They are closely followed by Denmark (88,454) and Norway (87,722).
Among Europe’s five largest economies, the balance of power is the same in nominal terms. However, the distance between them changes: the UK’s figure is 82,329, France’s 67,273, Italy’s 60,503 and Spain’s 57,517.
