The latest data from Eurostat's labour market survey have once again strongly highlighted the economic disparities prevailing within the European Union, confirming that workers' earnings in Luxembourg remain several times higher than those in eastern and southern member states.

On Wednesday, the European statistical office published fresh data on average annual adjusted salaries for full-time hourly work, revealing that the European average reached almost 40,000 euros, but that this growth is unevenly distributed.

According to the published information, the average annual adjusted salary for full-time work across the entire European Union during the past year, 2024, amounted to 39,800 euros, which is a significant increase of 5.2 percent compared with the year before. The emphasis on the "adjusted salary" is important because it allows for a realistic comparison, given that Eurostat calculates the full-time hourly equivalent even for workers employed part-time, thus eliminating methodological differences in the statistics of individual countries.

The differences are obvious

Huge differences are most visible at the top of the ranking, where the financially strongest and most productive economies are located. Far ahead of the pack, Luxembourg still dominates beyond question, where the average annual adjusted salary reaches an incredible 83,000 euros, which is more than double the European average.

Close to the Luxembourg standard, which is truly difficult to attain, are Denmark with 71,600 euros and Ireland with 61,100 euros, countries that profit from exceptionally developed financial, pharmaceutical and technological sectors, which as a rule offer the highest income rates. These data clearly show that despite all convergence measures, developed economies are not slowing down and are only increasing their financial lead.

Croatia in the group of countries closer to the bottom

On the other side of the European ranking, at the very bottom, are countries struggling with low productivity and weaker investment. The lowest average salaries were recorded in Bulgaria with annual earnings of 15,400 euros, followed by Greece with 18,000 euros and Hungary with 18,500 euros, with these amounts barely covering inflationary pressures.

When it comes to Croatia, it is placed precisely in that group of countries with earnings significantly below the European average. According to available analyses relying on the same methodology, the average annual gross salary for full-time hourly work in our country last year amounted to around 23,446 euros, which is approximately 1,950 euros per month. Despite the fact that Croatia recorded relatively strong salary growth of 8.2 percent compared with the year before last, the fact remains that we are still more than 16,000 euros away from the European average.

The main reason for such a disparity is not only the lower hourly rate, but also the overall structure of the labour market. Croatia, namely, relies to a large extent on sectors with low added value, such as seasonal tourism and less sophisticated manufacturing industry, which automatically affects the level of earnings. On the other hand, in countries such as Luxembourg, highly paid jobs in services and finance dominate, ensuring a higher overall average. Because of this, Croatian workers rightly feel significantly poorer than their colleagues in the west, regardless of nominal salary growth.

See the list of annual adjusted salaries in the EU (2024) according to Eurostat data:

• Luxembourg - 83,000 euros
• Denmark - 71,600 euros
• Ireland - 61,100 euros
• Belgium - 57,989 euros
• Austria - 54,508 euros
• Germany - 50,998 euros
• Finland - 48,391 euros
• Sweden - 44,619 euros
• France - 42,662 euros
• Slovenia - 33,081 euros
• Italy - 32,749 euros
• Spain - 32,587 euros
• Malta - 29,989 euros
• Cyprus - 26,430 euros
• Estonia - 24,899 euros
• Czechia - 23,454 euros
• Latvia - 22,293 euros
• Croatia - 21,523 euros
• Lithuania - 21,178 euros
• Slovakia - 19,001 euros
• Poland: - 18,054 euros
• Romania - 17,739 euros
• Portugal - 17,653 euros
• Hungary - 18,500 euros
• Greece - 18,000 euros
• Bulgaria - 15,400 euros

*The Netherlands is not included in Eurostat's comparison due to methodological differences.