Where did real wages in Europe increase and decrease the most in 2024?
Gross annual wages rose in nominal terms in almost all 32 European countries in 2024, with the exception of a very small decline in Finland. However, this does not take inflation into account. When adjusted for consumer price inflation, real wages fell slightly in four countries. This shows that the impact of nominal wage increases is reduced when inflation is taken into account.
So which European countries saw the biggest gains and cuts in real wages in 2024? The figures are based on a single worker without children earning the median wage, expressed in national currencies.
According to the OECD's 2025 wage tax report and Eurostat data, among EU countries, the United Kingdom, three EFTA members and candidate country Turkey, Turkey stands out as the one furthest behind with an 82.9% increase in gross nominal wages in 2024 compared to 2023. This sharp rise is mainly driven by the country's very high inflation rate of 58.3%.
Turkey recorded the highest increase in real wages
However, this was enough to give Turkey the highest real wage growth before tax, at 15.5%. On the other hand, opposition parties and the former head of Turkstat have claimed that official inflation figures are manipulated, suggesting that the actual rate could be significantly higher.
Romania followed Turkey in both nominal (20.9%) and real wage growth (14.3%). A lower inflation rate of 5.8% contributed to Romania’s stronger real wage growth. Bulgaria ranked third in real wage growth at 9.2%, driven by a 12% nominal wage increase and a relatively low inflation rate of 2.6%.
Real wage growth exceeds 7% in eight European countries
In addition to these three countries, real wage growth also exceeded 7% in five others: Malta (9%), Hungary (8.9%), Latvia (8.4%), Poland (7.8%) and Lithuania (7.2%).
Southern European countries recorded modest real wage gains. Italy saw a 2.7% increase, Greece 1.7%, Spain 1.9%, and Cyprus 2.1%. These figures are higher than those in most of Western Europe. However, they remain well below the strong growth seen in Eastern Europe.
Italy had the highest growth, France among the top economies
Among Europe's five largest economies, Italy recorded the highest real wage growth at 2.7%, followed by Germany (2.2%) and Spain (1.9%). The United Kingdom had an increase of 1.6%, while France reported the lowest growth at just 0.7%.
Purchasing power fell in four countries
Four countries recorded negative real wage growth. This means that wages have not kept up with inflation, so purchasing power has fallen in these countries. Belgium recorded the largest real wage decline at 1% in 2024. Two Nordic countries Finland (-0.9%) and Iceland (-0.7%) also saw negative growth. Luxembourg experienced a small decline of 0.4% in real wages compared to 2023.
These figures show strong real wage growth in Eastern Europe, while Southern and Central Europe experienced more moderate increases. The Nordic and Benelux countries recorded mostly flat or negative real wage growth.
Only Finland saw a decline in nominal wages
Among the 32 countries, Finland was the only one where the average nominal wage decreased in 2024, albeit only slightly, by just €14, from €52,907 to €52,893. With annual inflation at just 0.9%, the resulting real wage decline was minimal.
All of these changes reflect wages before taxes. Therefore, any changes in personal income tax or employee social security contributions could affect net earnings. According to the report, in 2022 and 2023, real wages had fallen in most OECD countries, including Europe.
Highest inflation rate in Europe: Turkey far ahead
When comparing inflation rates across Europe in 2024, Turkey was a clear outlier with an exceptionally high rate of 58.3%, as shown in the table above. No other country recorded inflation above 6%. These figures reflect the 12-month average rate of change as of December 2024, with some based on OECD estimates.
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