The painful picture of the economy: We are at the bottom of the net earnings ranking in Europe!

Although gross salaries vary among European countries, tax rates and social security contributions on net earnings significantly change the picture. Especially for married individuals with children, net earnings create serious differences in some countries.

According to Eurostat data, annual net earnings in Europe showed great variability in 2024. While Bulgaria had the lowest net earnings at 11 thousand 74 Euros, Luxembourg ranked at the highest level with 50 thousand 410 Euros. The European Union average was determined as 29 thousand 573 Euros. These figures apply to single individuals without children and vary for families with children.

DIFFERENCES IN NET EARNINGS

Among the European Free Trade Association (EFTA) countries, Switzerland stands out as the country with the highest net earnings at 85 thousand 631 Euros. Iceland follows it with 57 thousand 573 Euros. These countries, like other Scandinavian countries, perform above the European Union average.

While Western and Northern European countries have the highest earnings levels within the EU, Luxembourg is followed by the Netherlands and Ireland. Southern European countries remain below the average; countries such as Italy, Spain, and Greece are in this group. Among Eastern European countries, Romania, Bulgaria, and Hungary have the lowest net earnings.

Turkey ranks just above Bulgaria with 11 thousand 440 Euros in net earnings.

PURCHASING POWER AND FAMILIES WITH CHILDREN

According to purchasing power standards, net annual earnings vary across a wide spectrum from Slovakia to the Netherlands. While the EU average was determined as 28 thousand 906 Euros, countries like Switzerland and Norway stand out in this ranking.

The net earnings of families with children are higher than those of households without children. In Europe, while the net earnings of an individual without children are 29 thousand 573 Euros, the earnings of a single-income couple with two children rise to 35 thousand 656 Euros. Turkey stands out as the only country where this difference does not exist. In countries such as Slovakia, Poland, Luxembourg, and Belgium, the earnings of families with children can be more than 40 percent higher than those of households without children.

News Source: 12punto