EU Real Wages Fell 3% Overall from 2020-2025, Rising in 18 of 30 Countries Amid 25.6% Inflation

Real wages across the European Union declined by 3% cumulatively from 2020 to 2025, as inflation eroded gains in nominal pay. 9% increase. 6% over the same period, outstripping wage growth and reducing households' purchasing power.

The figures, based on gross wages and salaries in national currencies, show declines in real wages and salaries in 12 out of 30 European countries during that time. Real wages and salaries increased in the remaining 18 countries, according to Eurostat data reported by Euronews. In half of those European countries, real wages changed between -5% and 5%, reflecting relatively small variations.

4% between 2020 and 2025. A law requiring the minimum wage to be at least 50% of the average gross wage took effect in Bulgaria in 2023. 1% inflation.

4% rise in real wages over the period. 1%. Bulgaria, Serbia, and Croatia were not part of the euro area in 2020, and the euro area grouping in the data is based on its 2020 composition.

6% inflation. 7%. 8%.

4% increase in real wages. 6% rise. Several countries recorded nominal wage growth of over 60% from 2020 to 2025, particularly in Eastern Europe where starting wage levels were lower.

Declines marked the EU's top four economies. 2%. 3%, respectively.

5 in 2025. 5 in 2025. 1%.

7. Hungary and Romania were among the five lowest hourly wages in 2025. 5 in gross hourly wages that year, highlighting wide variations across the continent.

The data illustrate a 'catch-up' effect, where countries with lower initial wages, like Bulgaria, achieved higher percentage growth more easily than those with higher bases, such as Germany. Inflation remained below the EU average in countries like Italy, Malta, and France, but wage growth still failed to match it.

As wages are gross, tax changes could influence take-home pay, with ratios varying across Europe.