Salary predictions for Europe 2026/ Which countries are expected to have the strongest salary increases?
In Europe, real wage growth is projected to be slightly higher in 2026 compared to 2025. According to the European Central Bank, real wages in the eurozone have recovered since their significant decline during the high inflation period of 2022. Nominal wages have increased faster than prices, meaning that there have been improvements in wages for Europeans.
According to the Wage Trends 2025–26 report, real wages increased across Europe in 2025 in almost all countries surveyed, and this trend is expected to continue in 2026.
By the end of 2025, the report notes, real wages will increase in 23 of the 25 European countries surveyed. Only wages are projected to decline in Romania and Ukraine.
Among Europe's "Big Four" economies, France ranks highest, followed by Germany, Italy, and then the United Kingdom.
"Eastern European economies are generally projected to outperform their Western European counterparts again, benefiting from faster economic growth and higher productivity," the report said.
The UK will continue to see the lowest real wage growth among major European economies at 1.1%, but this marks a clear improvement compared to 2025.
The UK and Italy lag slightly behind France and Germany in terms of projected real wage growth for 2026 - but the main difference is in projected inflation.
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