Average European salaries show stark north-south divide, Eurostat reveals
Source: in-cyprus.com
Significant wage disparities exist across Europe, particularly between northern, southern and Baltic states, leading to varying standards of living amongst European workers, according to new Eurostat data.
The average annual adjusted full-time salary in the EU reached €37,900 in 2023, up 6.5% from €35,600 in 2022. The figures, based on national accounts and labour force surveys, have been adjusted to express part-time wages in full-time equivalents.
Luxembourg topped the rankings with an average annual salary of €81,100, followed by Denmark at €67,600 and Ireland at €58,700. In contrast, Bulgaria recorded the lowest average at €13,500, followed by Hungary at €16,900 and Greece at €17,000.
Cyprus ranked 12th among the EU-27, with average annual earnings of €26,430 in 2023, up from €25,338 in 2022.
The country has seen a steady increase in wages over the past eight years, with the average annual salary rising by €5,731 since 2015.
The disparities can be attributed to various factors, including labour laws, economic development, purchasing power, trade union strength, and different national development models focusing on heavy industry, tourism, services or manufacturing.
The EU is addressing wage transparency through new rules approved in April 2023, requiring companies to share salary information and address gender pay gaps exceeding 5%.
According to Eurostat, wages typically represent workers’ main income source, significantly impacting their spending and saving capacity.
The statistics agency notes that while gross wages include social contributions paid by employees, net earnings are calculated after deducting these contributions and any amounts owed to the government, such as income taxes.
The cost to businesses includes not only salaries but also non-wage expenses, primarily employer social contributions, which affect company competitiveness alongside capital costs.
The original article: belongs to in-cyprus.com .
