European salaries: where is it more profitable to work and why do conditions vary so much between countries?

The European labour market varies significantly in terms of salary levels and the opportunities they offer people in different countries. It is important to look at real purchasing power and the quality of life you can afford. Find out more about where in Europe people earn more, why there is such a difference and what this means for Ukrainians

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Changing jobs always raises the question: ‘How much can you really earn in a particular European country?’ Income levels in the EU vary significantly, both in terms of amounts and in terms of the real opportunities that this money gives people.

In this article, we analyse where the highest salaries are paid, who is at the bottom of the ranking, and how much of a role the cost of living plays.

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Who are the leaders: countries with the highest earnings

The average income in the European Union remains at a fairly high level. Luxembourg consistently ranks highest, with annual salaries almost double the EU average. The group of countries with the highest incomes also includes Denmark, Ireland, Belgium, Austria and Germany — in these countries, annual salaries exceed €50,000. They have strong economies and powerful financial and technological sectors, which directly affects the level of wages.

Read also: Which European cities have the cheapest apartments to buy, and which have the most expensive?

Where in the EU do people earn the least?

At the opposite end of the spectrum are Bulgaria, Greece, Hungary and a number of countries in South-Eastern and Central Europe. Here, average incomes are significantly lower than the EU average, and the difference with the leaders can be several times greater. This is often due to less developed high-tech industries, lower labour productivity and weaker trade union positions.

In which EU countries is it better for Ukrainians with temporary protection to live, travel and pay taxes? We discussed this in our previous article.

Why do salaries vary so much?

Several factors determine income levels in Europe. The structure of the economy is important — where IT, finance and innovative industries dominate, salaries are traditionally higher. The strength of trade unions and the collective bargaining system, the level of unemployment and state standards for minimum wages are also decisive. This is why Western and Northern Europe are traditionally ahead, while Eastern countries are still catching up.

The top European countries with the lowest cost of living are listed here.

A high salary does not guarantee a high quality of life

It is a mistake to evaluate only the nominal amount of income. An important indicator is purchasing power, namely how much can actually be purchased with the money earned, taking into account the cost of living. If this factor is taken into account, the gap between ‘richer’ and ‘poorer’ countries is significantly reduced.

Some countries that appear weaker in nominal terms show a better picture when you consider how many goods and services can be purchased for the same amount of money.

European salaries are generally showing an upward trend. In the coming years, average incomes in the EU will continue to rise, although the pace will vary depending on the economic capabilities of each country. In any case, when choosing a country to work in, it is important to look not only at the figures in job advertisements, but also at the cost of housing, transport, food and taxes.

Need help finding a job abroad?

If you are planning to work in Europe, it is important to get your documents in order and understand your contract, taxes, employment rights and possible risks. The Visit Ukraine portal helps Ukrainians get professional legal support on employment abroad, offering professional advice on legal work, employer verification, permits, contracts, and labour rights.

Book a consultation with a lawyer and work with confidence and protection!

Reminder! In the second quarter of 2025, housing prices in the EU rose again, with Portugal, Bulgaria and Hungary leading the way. How housing prices have changed in different EU countries and what influences the real estate market — find out more at the link.

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