In this article, we will look at the 15 countries with the highest average salaries in Europe. We have also discussed why Americans find Europe attractive for relocation. If you want to skip our detailed analysis, head straight to the 5 Countries with the Highest Average Salaries in Europe.
Europe has become a compelling destination for Americans that looking for relocation owing to obvious factors like quality of life, affordable housing, political stability, and remote work opportunities. However, moving to Europe’s expensive cities can be a financial challenge, but for many Americans, the investment in quality of life pays off. In cities like Vienna, where childcare costs are significantly lower than in the US, families find raising children more manageable. While rent in European cities like Copenhagen, Stockholm, and Berlin can be steep, residents can not neglect the amazing benefits these regions have to offer.
Moreover, Portugal is known to be one of the countries with high salary and low cost of living in Europe. On the other hand, Luxembourg is the country with the highest minimum wage in Europe, but it is still an expensive country to relocate to. To read about jobs and saalries in Europe, see the Most in Demand Jobs in Europe.
Speaking of minimum wages, in 2024, minimum wages across Europe vary significantly. Among the 27 EU member states, 22 have established a national minimum wage. However, Denmark, Italy, Austria, Finland, and Sweden do not enforce one. The European Free Trade Association (EFTA) countries, including Norway, Switzerland, and Iceland, also lack a national minimum wage policy. Cyprus recently introduced a minimum wage, while eight out of ten candidate and potential candidate countries have established their own. To read more about minimum wages, see the 20 Countries with the Highest Minimum Wage in the World.
Despite the establishment of minimum wages across the continent, the minimum wage disparity is stark, ranging from €477 ($481) in Bulgaria to €2,571 ($2770) in Luxembourg on a gross monthly basis. Notably, the minimum wage is above €2,000 ($2154) in Luxembourg, Ireland, the Netherlands, and Germany. Conversely, in 14 out of 22 EU member states with a minimum wage, it falls below €1,000 ($1077) per month. Adjusting for purchasing power standard (PPS) reveals a narrower range, with minimum wages ranging from €542 ($584) in Albania to €1,883 ($2028) in Germany.
The adequacy of minimum wages is a pressing concern, with ratios to median wages falling below 50% in ten EU countries in 2022. The EU’s new directive aims to address this by setting a framework for regular revisions to ensure adequacy and protect the standard of living for low-paid workers.
Speaking of adequacy, it is also interesting to note that more women are applying for jobs in Europe than in North America, with 52% of job applicants in the EMEA region being women, compared to 50% in North America, according to a March 2024 report from iCIMS. One factor contributing to the higher volume of female job applicants in Western Europe is the region’s progressive stance on workplace gender balance. European employers have been actively implementing initiatives to close gender gaps, such as equal parental leave policies and accessible childcare services. These efforts have encouraged more women to seek employment opportunities, reflecting a cultural shift towards gender equality in the workforce.
Before getting into our list of the countries with the highest average salaries in Europe, let’s look at the recent developments observed by multinationals in Europe to truly understand the attractiveness of Europe for salaries and jobs in general.
In 2024, Amazon.com, Inc (NASDAQ:AMZN) is further expanding its European operations by investing over €700 million ($754.1 million) in robotics and AI-powered technologies for its fulfillment centers (FCs). With plans to introduce 120 new pieces of automation technology, Amazon.com, Inc (NASDAQ:AMZN) plans to revolutionize its European network. By the end of the year, the company’s Innovation Lab, established in 2017, is set to oversee the installation of more than 1,000 new robotics systems to enhance efficiency and customer experience.
These cutting-edge technologies, including item sorters and automated guide vehicles, not only improve operational capabilities but also create new job opportunities. Amazon.com, Inc (NASDAQ:AMZN) reported that these innovations had enhanced over 50,000 jobs in its FCs, providing employees with upskilling opportunities and a safer working environment. Furthermore, Amazon.com, Inc (NASDAQ:AMZN)’s Innovation Lab serves as a training center for robotics operators and a testing ground for start-ups receiving funding through the Amazon Industrial Innovation fund.
On the other hand, in January 2024, Alphabet Inc (NASDAQ:GOOG) announced a major investment of $1 billion in a new data centre located in Waltham Cross, Hertfordshire, UK. This decision also highlights Alphabet Inc (NASDAQ:GOOG)’s commitment to supporting the digital economy of the UK and fostering innovation in AI-powered technologies. The 33-acre site not only promises to provide crucial compute capacity but also brings forth job opportunities for the local community, both in construction and technical roles. This investment aims to enhance the reliability of digital services for Google Cloud customers and users within the UK and beyond.
Alphabet Inc (NASDAQ:GOOG) is also committed to sustainability as it plans to operate all data centres and campuses on carbon-free energy by 2030. In alignment with this ambition, Alphabet Inc (NASDAQ:GOOG) announced a power purchase agreement in 2022 for offshore wind energy generated by the Moray West wind farm in Scotland, which will contribute 100 MW of energy to the grid. Moreover, the new UK data centre will feature provisions for off-site heat recovery, presenting an opportunity for energy conservation and benefitting nearby homes and businesses.
This investment in the UK data centre is part of Alphabet Inc (NASDAQ:GOOG)’s broader commitment to the country and Europe in general. It follows previous investments such as the $1 billion purchase of the Central Saint Giles office in 2022 and the development in King’s Cross.
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Methodology
To list the countries with the highest average salaries in Europe, we relied on our database of the highest average salary countries for different professions ranging from engineers to doctors to caregivers to bankers and even designers. We averaged the salaries of these professions for each European country and have now been listed below. The list is presented in ascending order.
By the way, Insider Monkey is an investing website that uses a consensus approach to identify the best stock picks of more than 900 hedge funds investing in US stocks. The website tracks the movement of corporate insiders and hedge funds. Our top 10 consensus stock picks of hedge funds outperformed the S&P 500 stock index by more than 140 percentage points over the last 10 years (see the details here). So, if you are looking for the best stock picks to buy, you can benefit from the wisdom of hedge funds and corporate insiders.
15. Italy
Average Salary: $43,920
While Italy is known to pay high salaries, there still exists the gender wage gap of around 5%. Women represent only 42.8% of the workforce and have the lowest employment rate in the EU at 51.7%. Structural imbalances also persist as 60% of the pay gap arises from differing job roles within companies, and 40% from women being concentrated in lower-paying sectors.
Italy is also one of the countries that produce the best fashion designers.
14. United Kingdom
Average Salary: $44,323
One of the biggest reasons for the attractiveness of UK when it comes to salaries and jobs is its high foreign investment. In 2023, the UK saw a notable uptick in Foreign Direct Investment (FDI), recording 985 projects. The UK’s share of Europe’s inward investment market grew to 17.3%, reflecting a significant rise from 2022’s 15.6%. Despite some challenges, Greater London has been a primary beneficiary of investment growth, particularly in technology and financial services, becoming the leading European region for investment.
13. Belgium
Average Salary: $45,348
In Belgium, the minimum wage has climbed to €2,029.88 ($2186) per month as of April 1st and hence, it is now among the top five EU states with minimum wages surpassing €2,000 ($2154. This rise, coupled with a tax employment bonus boost, is set to positively impact around 80,000 low-income earners in 2024. It is one of the best-paying countries in Europe as it pays the some of the highest salaries to doctors, engineers, and lawyers.
12. Netherlands
Average Salary: $45,870
Netherlands is one of the countries with the highest average salaries in Europe per month. It is also interesting to note that the average gross hourly wage increased by 7% last year, marking the most substantial increase in 45 years, according to Statistics Netherlands. The Netherlands is also one of the highest paying countries for data scientists.
11. Sweden
Average Salary: $46,020
Labor unions negotiate for fair pay and good benefits for workers in the country. Plus, Sweden cares a lot about making sure everyone has equal opportunities, so workers are provided with healthcare and ample time off when they need it without compromising on wages. All of these things together help keep salaries high in the country. With an average salary of $46,020 and a high quality of life, Sweden is one of the countries in Europe that are the best to earn money.
10. Austria
Average Salary: $46,379
Austria’s high salaries can be attributed to several factors like its highly stable economy driven by industries such as technology, finance, and tourism. Companies like Red Bull, Erste Group, and Voestalpine also contribute largely to the country’s economic prosperity.
9. Republic of Ireland
Average Salary: $48,887
In Ireland, the economy is projected to rebound with growth rates of 2.3% this year and 2.5% next year, according to the Economic and Social Research Institute (ESRI). However, challenges continue to stay as inflation and higher interest rates have dampened spending and investment, resulting in a mere 0.5% growth in modified domestic demand (MDD) last year.
8. Finland
Average Salary: $49,613
With a focus on technology and research in Finland, sectors like IT, engineering, and healthcare thrive, offering ample employment opportunities. Additionally, Finland prioritizes work-life balance, providing generous benefits and flexible work arrangements.
7. Monaco
Average Salary: $51,000
Salaries in Monaco are exceptionally high primarily due to the Principality’s strong economic performance as evident in its GDP figures. With a GDP of 8.34 billion (8.98 billion) Euros in 2022 with an 11.1% increase from the previous year, Monaco’s economic growth surpasses global and French averages.
6. Iceland
Average Salary: $52,440
With an average salary of $52,440, Iceland is one of the top 10 countries with the highest average salaries in Europe. The country has a highly strong economy supported by industries like fishing, tourism, and renewable energy. Additionally, Iceland has a well-educated workforce and a strong labor union presence, leading to effective collective bargaining for fair wages.
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Disclosure: None. 15 Countries with the Highest Average Salaries in Europe is originally published on Insider Monkey.