When hiring employees abroad, one of the first things employers want to check is the average salary in the country. But, as Europe is home to many countries, they find it challenging to navigate this complex terrain. Furthermore, insights into the factors that differentiate average European salaries shape hiring strategies, significantly influencing decision-making.
If you wonder how and why the average salary differs in Europe, here's a 2024 overview.
The average salary is a statistical measure that represents typical salaries within a specific country, industry, or occupation. Although there are several calculating methods, the arithmetic mean is the most straightforward method for calculating the average wage – total income after taxes divided by the total number of employees employed.
For North American companies planning to penetrate the EU market, studying average wages in Europe is important, as it offers the opportunity not only to understand market dynamics and consumer behavior but also to retain talent acquisition.
The average salary comes as an interplay of various factors employers need to understand when considering hiring in Europe.
Initially, the average salary amount differs by country and region, affected by their regulations and labor laws. The industry and sector also contribute, resulting in higher finance, technology, and healthcare salaries in Europe.
Additionally, variations in average salaries in Europe can come from economic development and living standards, but also currency variations.
It's essential to take these factors into account to understand the differences in the amounts and make informed compensation, recruitment, and talent management decisions.
Keep reading for the overview of average salary variations across European countries:
Average monthly net salary in the UK: 2,465 €
Average monthly gross salary in the UK: 3,091 €
Average monthly net salary in Ireland: 3,086 €
Average monthly gross salary in Ireland: 4,002 €
Average monthly net salary in France: 2,464 €
Average monthly gross salary in France: 3,530 €
Average monthly net salary in Germany: 2,741 €
Average monthly gross salary in Germany: 4,323 €
Average monthly net salary in Spain: 1,910 €
Average monthly gross salary in Spain: 2,471 €
Average monthly net salary in the Netherlands: 3,145 €
Average monthly gross salary in the Netherlands: 4,191 €
Average monthly net salary in Italy: 1,740 €
Average monthly gross salary in Italy: 2,479 €
Average monthly net salary in Poland: 1,291 €
Average monthly gross salary in Poland: 1,783 €
Average monthly net salary in Portugal: 1,162 €
Average monthly gross salary in Portugal: 1,679 €
Average monthly net salary in Switzerland: 5,569 €
Average monthly gross salary in Switzerland: 7,073 €
Average monthly net salary in Austria: 3,269 €
Average monthly gross salary in Austria: 4,779 €
Average monthly net salary in Belgium: 2,463 €
Average monthly gross salary in Belgium: 3,832 €
Average monthly net salary in Norway: 3,442 €
Average monthly gross salary in Norway: 4,700 €
Average monthly net salary in Denmark: 4,149 €
Average monthly gross salary in Denmark: 6,093 €
Average monthly net salary in Finland: 2,634 €
Average monthly gross salary in Finland: 3,734 €
Average monthly net salary in Sweden: 2,885 €
Average monthly gross salary in Sweden: 4,213 €
Differences in average European salaries can significantly impact your hiring decisions. This complex landscape, however, becomes successfully navigated with the right guidance and support.
Thus, if you are thinking about hiring employees abroad, we are here to provide expert assistance. No need for you to set up an entity – EuroDev can handle everything for you, from EoR (Employer of Record) services and payroll outsourcing, to help you with day-to-day HR tasks. Learn more about our HR Outsourcing services.
Disclaimer: While we strive to provide accurate and timely information, please note that HR policies and regulations can change frequently. It is recommended that you seek guidance from our HR consultants to ensure that the data presented here is current and accurate.
Source: Vouchercloud