New data from Eurostat provide imperative insights into drastic changes in average salaries across 26 EU European countries from 2018 to 2023. These results point to an overall upwards trend in nominal euro terms, but significant gaps between countries remain. Dr. Sotiria Theodoropoulou, head of the European Trade Union Institute (ETUI). In short, what Herp needs to recognize is that productivity is the key factor behind sustainable wage growth.
The Eurostat report indicates that over the past five years, average full-time adjusted salaries have risen across all participating EU nations. The increase isn’t the same in all places. Some countries like the now famous Luxembourg and Lithuania reaped impressive benefits, while others like Greece and Romania struggled.
Salary Increases Across Europe
Eurostat data shows a stark contrast in wage growth across Europe during the four fiscal years analyzed. In Greece, monthly average salaries increased by €91, and in Luxembourg, they exploded by an astounding €1,291 per month. This huge gulf reflects a massive divergence in pay between countries across Europe.
The report lays bare an alarming trend. Of the 26 EU member states, 10 have an average gross salary below €2,000 per month. Four member states had an average gross monthly salary below €1,500. Poland is at €1,505, Romania, Greece and Hungary are all around €1,400.
Wealthier countries like Austria and Germany had average annual salaries of €4,542 and €4,250, respectively. Lithuania topped this years’ list with an impressive €1,141 increase in average monthly salary. This commendable achievement demonstrates some countries’ effective means to raise overall wage floors.
Disparities in Wage Growth
The data shows that the Nordic EU countries are still under the EU average for salaries, together with Cyprus and Greece. This trend should be a concern both for economic productivity and the effectiveness of often progressive labor policies enacted in these jurisdictions.
Dr. Theodoropoulou explains that productivity is a key component to this equation. She states, “More generally, higher bargaining power for workers—whether it comes from strong collective bargaining institutions or from policies that provide them with ‘outside options’ in the labour market—make it more likely that productivity gains will be translated into higher wages and labour costs.” This second reality points to the need for empowering workers to make these better wage gains.
Read through the annex to find a shocking disparity in pay and compensation. In these 26 countries, the maximum average salary is six times that of the minimum. This type of gap indicates deeper economic inequalities that will likely require focused policy solutions to achieve equitable wage outcomes.
The Role of Collective Bargaining
The impact of collective bargaining on wage levels is vital, says Dr. Theodoropoulou. As the director of the ETUI’s economic, employment, and social policies unit, she is devoted to fighting for collective worker strength. She argues this power is really important for increasing wage growth.
Countries that support strong collective bargaining frameworks generally experience more positive results for their workers as a result. Stronger workers’ bargaining power is what enables workers to win higher wages, turning productivity gains into real prosperity.
Dr. Theodoropoulou highlights that as workers gain more leverage through collective bargaining or supportive labor policies, their financial well-being improves significantly. This relationship furthers the notion that when labor rights are strong, economic conditions follow for workers throughout Europe.
Leave a Reply