Several well-developed European countries report high average annual salaries, often exceeding €4,000/month. These great figures are also paired with an exceptional quality of life, reliable public transport transport, and world-class healthcare. This combination often acts as a powerful catalyst for international (often global) talent seeking professional opportunities in these high-wage countries.
As such, in this article, we’ll talk about those European nations where nominal gross salary figures are highest, attracting job seekers with their high standards of living and career prospects. However, it is crucial to remember the correlation between high wages which also often elevates the cost of living index.
1. Luxembourg
If you seek to answer which country pays the highest salary, Luxembourg is the definitive leader.
According to some sources, the average annual salary in the country hovers around €75,919, thanks mostly to its powerful financial sector, and the presence of the European Union Institutions. Finance specialists here can earn anywhere between €3,000 and €8,000 with experience and specialisation.
The high number of international institutions is what drives demand for highly educated and often multilingual experts, which contribute to the high average wage and the high minimum salaries. Naturally, the country also has an exceptional quality of life and excellent services, which all come with a high cost of living.
2. Switzerland
When looking at the average salary per month in Europe per month, Switzerland takes its spot on this list, thanks to its many developed sectors.
Similarly to the case of Luxembourg, Switzerland also has a robust finance and banking sector. Cities like Geneva and Zurich, where the gross monthly wages typically average out at CHF 7,000 (or around €7,500). Life sciences and the pharmaceutical industries are equally strong, particularly in cities like Basel, contributing to a high national average significantly.
What makes Switzerland rank so high on the list? Experts say that the low taxation rate in certain cantons directly translates into higher net salaries, boosting disposable income, even despite the fact that the cost of living can be extremely high.
3. Denmark
The Scandinavian country also offers high pay and pairs it with high social equality. To be more precise, the average monthly salary in Denmark before tax is around €6,000-6,400.
The economy is diversified and driven by highly compensated sectors like pharmaceuticals (Novo Nordisk, etc.) and renewable energy (especially offshore wind). What partly ensures these high wages is the strong collective bargaining system, in which unions and employers collaboratively set wages, and work conditions, contributing to one of the world’s lowest low income inequality.
Still, the high nominal salaries are subject to one of Europe’s highest personal taxation rates. On the other hand, this taxation funds Denmark’s comprehensive welfare system.
4. Belgium
Belgium, especially its capital, acts as a political and administrative hub for Europe. Due to its important role, it’s also one of the highest average-salary countries in the EU, with an average monthly gross pay of €3,800–€4,000.
Among the key factors that drive these figures is the fact that Belgium (Brussels) is the de facto capital of Europe, giving home to major EU institutions (European Commission, Council) and NATO, creating demand for legal, political, and administrative experts in Brussels.
The high standard of living and a statutory minimum wage both contribute to the strong average salary. However, high taxes and social security contributions often reduce the take-home net salary. Still, experts agree that it;s among the best countries to live and work in Europe.
5. The Netherlands
The Netherlands is a major logistics and Tech Hub. The average monthly salaries are also quite inviting for foreign talent, hovering at €3,800–4,200 gross per month across all industries.
The high concentration of multinational corporations and a thriving tech scene, particularly in Amsterdam and Eindhoven are among the main reasons for the high salaries, along with international logistics centers like Rotterdam and political hubs like the Haque.
A major draw for high-skilled non-EU workers is the 30% ruling, a tax incentive that allows employers to pay up to 30% of the gross salary tax-free for five years, significantly increasing the net salary for expatriates. This compensates for the high cost of living.
6. Norway
The average Norwegian salary is around €5,000–5,500 before taxes, making it a rather compelling destination for most workers planning to go abroad. The main salary driver in the country is the petroleum industry (oil and gas), paying premium wages for specialised technical staff and engineers.
Norway also has low income inequality and a strong welfare system, resulting in a high living stanford across the entire workforce, which is highly skilled and educated, further boosting their earning potential.
7. Germany
Europe’s largest country and residential powerhouse, it’s only natural for Germany to make it to this list. With an average salary of around €4,200 gross per month, the country is among the highest salary paying countries in the continent and the EU.
The core sectors are the main salary drivers in the country. Engineering in the automotive industry, a strong IT sector, and a robust manufacturing infrastructure are the most crucial sectors in the country. IT experts, and software engineers may be able to earn an annual average of between €70,000–€100,000+ gross annually.
High salaries, particularly in skilled sectors, attract significant labor-related immigration. However, the progressive tax system means the taxation rate is high, impacting the final net salary.
8. Austria
Austria maintains a stable, high-income economy, with an average monthly gross salary of around €4,500–€4,700, making it an ideal destination for a lot of foreign workers, especially from the Balkans.
Skilled trades are especially welcome, even though managerial roles command the highest salaries. However, despite the high gross salaries and focus on maintaining purchasing power through wage increases, Austria is known for having one of the world’s highest taxation rates on personal income, making the net salary figure lower than expected.
9. Finland
The economy is supported by high-tech industries and a strong public sector, benefiting from the country’s investment in its high quality education system. As such, Finland offers high-quality services and high wages. Couple this with an average monthly gross salary of 3,500 euros per month.
Finland is consistently ranked the World’s Happiest Nation, Finland offers excellent work-life balance and a very low corruption index. However, the total cost of living, particularly housing rent, remains substantial.
10. Ireland
The average monthly gross salary in Ireland is approximately €2,100–€2,200 before deductions, which isn’t particularly the highest on this list, but the country is a global tech hub, which can attract foreign talent, hungry for international recognition.
The massive Foreign Direct Investment (FDI), attracted by the low corporate tax rate, has established Dublin as the European headquarters for major Tech Giants (Google, Meta, Apple). Senior Software Engineers in Dublin can earn upwards of €80,000 to €100,000+ gross.
The concentration of high-paying tech roles skews the average salary upward, though it is slightly lower than others on this list, it boasts significant growth potential.
