Gross salaries may not be the most effective measure for comparing European countries because personal income tax and employee social security contributions vary widely. Some countries also provide more generous support to households with children. Therefore, net annual earnings provide a more useful indicator for comparison.
So, which European countries offer the highest net average earnings? Where do people earn the most on average across Europe?
Annual net earnings differ significantly across Europe, even when adjusted for purchasing power according to Eurostat. In 2024, annual net earnings ranged from €11,074 in Bulgaria to €50,410 in Luxembourg within the EU. The EU average was €29,573
These figures apply to a single person without children earning 100% of the average earning. Other options are discussed below.
Top earnings found outside the EU
With available data for three EFTA countries and the EU candidate country Turkey, the highest figure rises to €85,631 in Switzerland, followed by €57,573 in Iceland. Norway also ranks fifth with €47,232, indicating the dominance of non-EU countries in net earnings.
Other Nordic countries also perform well. Denmark (€43,913), Finland (€36,877), and Sweden (€36,147) all rank above the EU average.
Western and Northern European countries lead within the EU. Following Luxembourg, the Netherlands (€47,892) and Ireland (€46,208) report the highest net earnings among EU member states.
Southern and Eastern Europe lag behind
Southern European countries like Italy (€24,797), Spain (€24,571), and Greece (€18,709) fall significantly below the EU average. Eastern member states such as Romania (€12,655), Bulgaria (€11,074), and Hungary (€13,883) report the lowest net earnings in the bloc. Turkey (€11,440) stands just above Bulgaria in net earnings.
In the big four, Germany leads; Italy and Spain below EU average
Net earnings for the EU’s four largest economies are as follows: Germany leads with €39,594, followed by France at €32,354. Italy (€24,797) and Spain (€24,571) fall well below the EU average.
When adjusted for purchasing power standards (PPS), net annual earnings ranged from 16,784 in Slovakia to 40,948 in the Netherlands, with an EU average of 28,906.
East-West divide in purchasing power
When non-EU countries are included, Switzerland leads by a significant margin with 48,331 PPS, followed by Norway with 38,712 PPS, placing it third after the Netherlands. Luxembourg (37,630 PPS) and Austria (37,359 PPS) complete the top five.
The data indicates an East-West divide in purchasing power, with most Eastern, Baltic, and Balkan countries underperforming.
Portugal is an outlier—geographically Western but economically grouped with Eastern countries in terms of purchasing power, with a PPS level below 20,000.
Purchasing power narrows the gap, yet persists
In nominal terms, there is a significant disparity in net annual earnings across EU countries. The gap between the highest and lowest—Luxembourg and Bulgaria—is more than 4.5 times. However, when adjusted for purchasing power standards (PPS), this difference narrows to 2.4 times, between Slovakia and the Netherlands.
Among the EU’s ‘Big Four’ economies, Germany is the only one with a PPS level above the EU average.
Net earnings rise for households with children
In general, households with children have higher net earnings than those without. For example, while a single person without children has net earnings of €29,573, a one-earner couple with two children earns €35,656. This difference stems from tax benefits and family allowances.
The only exception is Turkey, where net earnings are the same for both household types.
In Cyprus, Finland, Norway, Spain, and Sweden, families with children still earn more, but the difference is relatively small—less than 10%.
Households with children see the greatest advantage in Slovakia, Poland, Luxembourg, and Belgium, where net earnings are over 40% higher than those of childless households. For example, in Slovakia, net earnings rise from €14,070 for a single person without children to €19,851 for a one-earner couple with two children.
Two-earner couples with two children generally have higher net earnings than those without children. However, the income advantage is smaller compared to that of one-earner couples with two children. In the EU, they earn an average net income of €63,523.
Net earnings: Definition and why they matter
Average annual net earnings represent the income remaining after deducting personal income taxes and employee social security contributions from gross annual earnings, with any applicable family allowances added. These earnings can vary depending on family circumstances—such as whether a person is single or married, and how many dependent children they have.
