Minimum wages are the lowest wages that employers must legally pay workers. In Europe, some countries set a minimum wage by law, while others do not have a national minimum wage.

Minimum Wages in EU Countries

As of January 2024, 22 out of 27 European Union (EU) countries have a national minimum wage. The five countries that do not have a national minimum wage are Denmark, Italy, Austria, Finland, and Sweden. In these countries, wages are usually decided through agreements between employers and workers’ unions.

The minimum wages across EU countries vary. To compare wages properly, they are usually measured in euros per month. The wages are also adjusted to consider differences in the cost of living.

Minimum Wage Levels Across the EU

EU countries with a minimum wage can be grouped into three categories based on their monthly wages in January 2024:

1. Low Minimum Wage (Below €1,000 per month)
   • Bulgaria (€477)
   • Hungary (€579)
   • Romania (€663)
   • Latvia (€700)
   • Slovakia (€750)
   • Czechia (€798)
   • Estonia (€820)
   • Croatia (€840)
   • Poland (€970)
2. Medium Minimum Wage (€1,000 to €1,500 per month)
   • Lithuania (€1,000)
   • Portugal (€1,005)
   • Malta (€1,013)
   • Greece (€1,039)
   • Slovenia (€1,250)
   • Spain (€1,323)
3. High Minimum Wage (Above €1,500 per month)
   • France (€1,766)
   • Germany (€1,981)
   • Belgium (€2,029)
   • Netherlands (€2,070)
   • Ireland (€2,146)
   • Luxembourg (€2,570)

Minimum Wages Outside the EU

Some European countries that are not part of the EU also have a national minimum wage:

• Albania (€380)
• Montenegro (€532)
• Serbia (€490)
• North Macedonia (€563)
• Turkey (€724)
• United Kingdom (€2,184)

Minimum Wages Adjusted for Cost of Living

The cost of living differs between countries. To make fair comparisons, wages are adjusted using a measure called Purchasing Power Standard (PPS). This shows what workers can actually afford with their wages.

When adjusted for cost of living, the ranking of minimum wages changes. Some countries with lower wages have a higher ranking when adjusted because their living costs are lower.

For example:

• Luxembourg still has the highest minimum wage even after adjustment.
• Germany, Netherlands, Belgium, and Ireland remain in the high-wage group.
• Some countries like Portugal and Lithuania move higher in the ranking after adjusting for cost of living.

Minimum Wage Compared to Average Wage

Minimum wages are also compared to the average wages in each country. This percentage helps show how much minimum-wage workers earn compared to the average worker.

In 2022, the percentage of minimum wage compared to the average wage varied:

• It was below 45% in countries like Hungary, Estonia, and Czechia.
• It was above 60% in Portugal and Slovenia.

Changes in Minimum Wages

Minimum wages are reviewed and adjusted regularly. In most EU countries, the wages increased between January 2023 and January 2024. The increases were different in each country, depending on inflation, economic growth, and government policies.

Conclusion

Minimum wages in Europe vary widely. Some countries have high wages, while others have lower wages but adjust them for cost of living. Countries without a national minimum wage rely on agreements between workers and employers. Wages are updated regularly to keep up with the economy.

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