Employee regulations in Europe are generally quite strong and emphasize individual working conditions and rights. But when it comes to wages in different EU member states, there are still significant differences between countries depending on a number of factors. In Iceland, an average annual wage in 2022 was around 73,000 euros gross, while in Greece this was much lower at around 24,000 euros gross. Belgium is in the top 5 with more than 60,000 euros gross.
According to Statista, a statistical database for market and consumer data, the average annual wage last year in EU member states ranged from €73,642 in Iceland to €24,067 gross in Greece. The fact that average annual wages in the EU Member States still differ considerably is due to a number of factors such as legislation, demand and inflation.
If you compare the average annual wages in the different EU member states, Iceland is the member state with the highest average annual wage. Iceland’s high wages are due to the fact that much of the country’s private sector is based on collective bargaining agreements. Some of the increases are also due to the emergence of COVID-19 benefits, as well as hourly wages rising again after the country experienced an economic dip during the pandemic.
Although annual wages are the highest in Iceland, it is also one of the most expensive countries in the world with persistently high inflation causing workers to demand higher wages.
Luxembourg is hot on Iceland’s heels and takes second place. The financial and banking sectors have the most influence on attractive wages in the country, with most banks employing highly skilled, experienced and demanding workers. In addition, the country also reviews its social minimum wage every two years in comparison with average wages and price movements.
Wage indexation Belgium
Our country is heavily committed to wage indexation for both blue-collar and white-collar workers in the private sector. In 2022, Belgium experienced the highest indexation in 50 years, when rising inflation and out-of-control energy prices took their toll on our purchasing power. In 2022, the average annual wage in our country was 63,758 euros gross.
The fact that average annual wages are the lowest in Greece is still due to the national debt crisis. The country is still struggling to recover from this, which means that average wages and minimum wages are much lower than in the rest of Europe. Nearly 60 percent of wages in the private sector are less than 1,000 euros per month, for both full-time and part-time work. Those who work part-time usually do so because they cannot find a full-time job.
Slovakia also struggles with low labor productivity and the aftermath of a collapsed Soviet regime, which keeps wages low. Portugal also faces low productivity and an increasing trend to hire short-term seasonal workers to support the country’s tourism sector.
The sectors with the highest wages in Europe are finance, insurance, electricity, mining, IT, retail and education. At the other end of the spectrum, the lowest-paid sectors are administrative support, hospitality and construction.
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