In the salary ranking of Europe, Latvia remains among the countries with the lowest incomes 0 91

At the same time, Eastern Europe is experiencing rapid salary growth, gradually narrowing the gap with Western Europe, writes tv3.lv citing "Euronews".

According to "Eurostat", the highest average net hourly wage (the so-called "take-home pay") in Europe is in Luxembourg, amounting to €49.7. This is followed by Iceland (€47.0), Norway (€45.8), and Denmark (€44.7).

At the opposite end are Bulgaria with €10.5 per hour, as well as Latvia and Romania — both countries averaging €12.9 per hour. For comparison, in Estonia, the hourly wage reaches €15.7, and in Lithuania — €16.9.

The fastest salary growth is in Eastern Europe

Although salary levels in Eastern Europe remain lower, the growth rates are significant. From 2021 to 2025:

• in Bulgaria, net salaries increased by 69.4%;
• in Poland — by 66%;
• in Romania — by 61.3%.

Salaries in Croatia, Lithuania, and Hungary also increased by more than 50%.

At the same time, in the Nordic countries and some Western European states, the growth was significantly more moderate. In Norway, salaries increased by only 5.5%, in Sweden — by 6.1%, and in Italy — by 10.6%. In Germany, France, and Spain, the growth was also below the EU average (20%).

Tax burden varies significantly

The cost of labor in Europe is formed not only by salaries but also by social contributions and other work-related expenses. On average, about a quarter of all labor costs consist of expenses not directly related to salaries.

"Eurostat" notes that:

• in France and Sweden, such expenses reach 32%;
• in Slovakia — 29%;
• in Romania, Lithuania, and Malta, they are virtually negligible.

In Latvia, such expenses account for about 21% of labor costs, in Estonia — 25.6%, while in Lithuania — only 5.5%.

At the same time, in Spain and Italy, labor taxes are above the EU average, although net salaries there are below average.

The highest labor costs are in Luxembourg

When considering the total cost of labor (salary plus taxes), Luxembourg remains the leader — employers pay about €57 per hour for one employee.

For comparison:

• in Denmark, costs are about €5 lower;
• in the Netherlands — nearly €10 less.

The lowest costs are in Bulgaria (around €12 per hour) and Hungary (just over €15).

Overall costs continue to rise

According to "Eurostat", in 2025, the cost of labor in the European Union increased by 4.1%, while in the eurozone — by 3.8%.

An exception was Malta, where costs slightly decreased (–0.5%). The highest growth was recorded:

• in Bulgaria (+13.1%);
• in Croatia (+11.6%);
• in Slovenia (+9.3%).