The Eurostat statistical office conducted a new study.
According to the agency's latest data, significant income inequality remains among the population of the European Union.
Approximately ten countries have an average monthly salary of less than €2,000, and four have an average monthly salary of less than €1,500. These figures highlight the differences in economic development and living standards between the eastern and western regions of the EU. According to official statistics, Cyprus is at the bottom of the list. The average adjusted salary on the island is €2,203 per month, significantly lower than the EU average of €3,155. Nevertheless, Cyprus fares better than countries such as Greece, which has one of the lowest income levels in the EU at €1,418. Cyprus also has significantly higher salaries than Hungary, Bulgaria, and Romania, where average salaries range from €1,100 to €1,500.
Poland, often used as a benchmark for comparing Eastern European economies, lags behind Cyprus with an average salary of €1,505, almost a third lower than Cyprus'. At the same time, despite Poland's relative affordability, Cypriots have higher purchasing power thanks to a combination of income and moderate living costs.
At the other end of the ranking are Europe's most economically developed countries. Luxembourg remains the leader in terms of average nominal salary at €6,755 per month.
Germany (€4,250) and France (€3,555) follow closely behind. These countries provide high incomes to their residents, but the cost of living is also significantly higher. Switzerland is particularly interesting, with an average monthly salary of €8,104, an absolute record by European standards.
However, nominal salaries do not always provide an accurate picture. To account for differences in price levels in different countries, purchasing power parity (PPP) is used — a universal indicator that shows how many goods and services an employee can purchase with their salary in each country. When converted to PPP, the gap between the leaders and outsiders narrows. While the difference between the highest and lowest salaries in the EU is more than sixfold in nominal terms, it is only 2.6 times greater in PPP terms.
According to this data, the PPP-adjusted salary in Cyprus is around €2,317, which is slightly below the EU average but significantly higher than in countries such as Greece, Romania, and Bulgaria. In this sense, Cyprus has a balanced relationship between income and living standards, making it attractive to locals, expats, freelancers, and international professionals.
Thus, although Cyprus is not among the EU leaders in terms of salaries, it demonstrates a stable and competitive position, especially compared to southern and eastern European countries. Moderate income levels, a stable economy, and an affordable cost of living create a positive image of Cyprus for those considering moving or working on the island.