Huge wage gap in Europe: Switzerland leads, Turkey's situation is dire
A newly released OECD report reveals deep disparities in average annual gross salaries across European countries, with Turkey ranking at the bottom of the list. However, the picture changes when purchasing power is taken into account; critical factors stand out behind the income differences.
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According to data compiled by the OECD, Switzerland stands out as the highest-paying country in Europe with an average annual gross salary of 107,487 Euros. Switzerland, the only country to exceed the 100,000 Euro threshold, is followed by Iceland with 85,950 Euros. In Luxembourg, which ranks first among European Union members, this figure was measured at 77,844 Euros.
While the average annual income of employees in Denmark reaches 71,961 Euros, this amount is 69,028 Euros in the Netherlands; in Norway, it was recorded at high levels again with 68,420 Euros.
WHAT IS THE SITUATION IN GERMANY AND THE UK?
In Germany, one of Europe's leading economies, the average annual salary leads with 66,700 Euros. In the United Kingdom, this value was determined to be 65,340 Euros. Average salaries remain at 45,964 Euros in France, 36,594 Euros in Italy, and 32,678 Euros in Spain.
In Western and Northern European countries such as Austria, Belgium, Ireland, Finland, and Sweden, average annual gross incomes also exceed 50,000 Euros.
LOWEST SALARY IS IN TURKEY
At the very end of the list is Turkey, with an average annual gross salary of 18,590 Euros. Among European Union countries, Slovakia is close to the bottom of the list with 19,590 Euros. In countries such as Hungary, Latvia, Czechia, Portugal, and Poland, salaries also remained below an average of 25,000 Euros.
HOW DID PURCHASING POWER CHANGE THE RANKINGS?
In salary assessments, not only nominal amounts but also purchasing power parity (PPP) were taken into account. According to this calculation, salary differences between countries partially decreased, and remarkable changes occurred in the rankings. While Turkey was last in the nominal ranking, it rose 9 places to 18th when based on PPP. It was also notable that Germany rose 5 places in the PPP ranking to take second place. On the other hand, Iceland and Estonia fell in the rankings.
WHAT ARE THE REASONS FOR THE DIFFERENCE IN WAGES?
International Labour Organization (ILO) experts state that the wage gap in Europe stems from three main reasons: It is emphasized that salary levels are generally higher in countries where high value-added sectors such as finance and technology are dominant, and that strong union structures play a role in increasing employees' incomes.
INCOME TAXES CHANGE NET SALARY
Another element highlighted in the report was that income tax rates between countries show significant differences. This situation often leads to the net salary received by employees with gross wages being ranked differently.