Low-Income European Countries: Romania Ranks Among the Lowest Average Wages in the EU
Let's take a closer look at the earning landscape across Europe as we analyze the data from Eurostat and OECD for the year 2023.
First off, Europe's economy is a mixed bag when it comes to earnings. While some countries boast sky-high salaries, others struggle to make ends meet. Western and Northern Europe dominate the list of the highest average salaries, with Luxembourg taking the No. 1 spot, offering an estimated €6,755 monthly wage. Close behind are countries such as Denmark (€5,634), Ireland (€4,890), Belgium (€4,832), Austria (€4,542), Germany (€4,250–€4,353), and Finland (€4,033).
On the flip side, ten countries find themselves on the lower end of the spectrum, with figures under €2,000. Among these, Romania, Greece, Hungary, and Bulgaria have average salaries dipping below €1,500. Poland may have just barely edged above this threshold with an average salary of €1,505, while other prominent Southern European economies like Italy (€2,729) and Spain (€2,716) are still more than €400 below the EU average.
But wait, there's more to the story! When accounting for the purchasing power standard (PPS), the difference between the highest and lowest salary decreases from a 6:1 ratio to 2.6:1. In PPS terms, the EU average salary ranges from €1,710 in Greece to a lavish €4,479 in Luxembourg.
Adopting a PPS perspective, Romania secures a rank higher than Bulgaria, Hungary, and Slovakia, with salaries roughly €2,400. Belgium (€4,038 PPS), Denmark (€3,904 PPS), Germany (€3,898 PPS), and Austria (€3,851 PPS) complete the top.
Speaking of growth, EU economies are on an upward trajectory, with average wages increasing in all 26 member states analyzed. The overall average salary rose by €507 per month (representing an increase of approximately 19%) between 2018 and 2023. Lithuania saw the most significant growth (102% and an increase of €1,141 per month), while Greece experienced the smallest increase, with only an additional €91 per month.
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Footnotes
[1] Euronews[2] Our website[3] Eurostat & OECD
Insights
By examining the average salaries across the EU, we can discern a clear contrast between the fortunes of various countries:
- The top earners: Luxembourg, Denmark, Ireland, Belgium, Austria, Germany, and Finland, with the former leading the pack.
- The lower-earning countries: Romania, Bulgaria, Greece, Hungary, Poland, Italy, and Spain, with the last two countries having average salaries more than €400 below the EU average.
When considering purchasing power parity (PPS), countries like Romania, Bulgaria, Greece, and Hungary, which struggle with lower earnings, seem less disadvantaged relative to the rest of Europe.
Finally, it is interesting to note that across the EU, salaries have risen across the board, with significant increases observed in countries like Lithuania.
In the analysis of European salaries in 2023, it is evident that certain countries like Luxembourg, Denmark, Ireland, Belgium, Austria, Germany, and Finland have higher average salaries in the business sector, while others such as Romania, Bulgaria, Greece, Hungary, Poland, Italy, and Spain are on the lower end. When accounting for the purchasing power standard (PPS), countries like Romania, Bulgaria, Greece, and Hungary appear less disadvantaged in comparison to the rest of Europe.
Moreover, the EU economies are experiencing growth, with average wages increasing in all 26 member states analyzed, indicating a positive trend in the finance and business sectors.
