Europe's Minimum Wage Hierarchy Shifts with Purchasing Power Parity
The latest data on minimum wages in Europe shows that nominal amounts vary significantly from one country to another. However, when taking into account purchasing power parity (PPP), the differences between countries narrow down.
Luxembourg remains at the top with a nominal minimum wage of 2.771 euros per month, followed by Ireland, Germany, the Netherlands, and Belgium. At the opposite end of the list, Bulgaria has the lowest minimum wage within the European Union, at 620 euros. When considering PPP, Germany takes the lead with 2.164 PPS, followed by Luxembourg, the Netherlands, Belgium, and Ireland.
Some countries show significant progress when their cost of living is taken into account. Romania rises from 20th to 12th place, while Macedonia advances from 24th to 16th place. Serbia, Croatia, and Bulgaria also have better positions in terms of purchasing power.
In the period from January to July 2026, only eight countries reported an increase in the minimum wage in local currency. The largest increase was recorded in Macedonia with 6.9%, followed by Romania and Estonia with 6.8%. In the remaining countries, minimum wages remained unchanged or experienced a decline due to inflation.