Minimum wages remain a central economic and political issue across Europe in 2026, as rising living costs continue to test household resilience. According to estimates based on Eurostat data, around 12.8 million workers across 22 EU countries earn the statutory minimum wage or less. Yet despite inflation, a significant share of these workers entered the new year without a meaningful pay rise, underscoring the uneven nature of wage protection across the continent.

The Nominal Leaders: A Wide Euro Gap

Measured in monthly gross terms, minimum wages in Europe vary dramatically. At the top of the EU ranking stands Luxembourg, where the minimum wage reaches €2,704 per month. It is followed by Ireland (€2,391), Germany (€2,343), the Netherlands (€2,295), and Belgium (€2,112). These five countries form an exclusive group where statutory minimum pay exceeds €2,000, reflecting both stronger productivity levels and more developed wage-setting frameworks.

France sits just below this tier at €1,823, while Spain’s minimum wage drops to €1,381, highlighting that even neighboring economies can diverge sharply. At the bottom of the EU spectrum, Bulgaria records a minimum wage of €620. When EU candidate countries are included, the gap becomes even starker, with Ukraine at just €173 and Moldova at €319.

Below €1,000: The Eastern European Reality

Out of 29 European countries with statutory minimum wages, 15 remain below the €1,000 threshold. This group includes all EU candidate countries as well as several EU members in Eastern and Southeastern Europe. Hungary (€838), Romania (€795), and Czechia (€924) illustrate how large parts of the European workforce still operate far below Western income levels in nominal terms.

This geographical split reflects long-standing structural differences, including productivity, industrial composition, and bargaining power. Experts consistently point out that higher wages are sustainable only where economic output per worker supports them.

Purchasing Power Changes the Picture

Nominal wages, however, tell only part of the story. When adjusted for purchasing power standards (PPS), which account for differences in living costs, the gaps narrow considerably. In PPS terms, minimum wages across the EU range from about 886 in Estonia to 2,157 in Germany.

While the top group remains broadly unchanged, several lower-income countries improve their relative standing. Romania shows the most notable jump, moving from near the bottom in euro terms to the middle of the pack once purchasing power is considered. Serbia, Turkey, and North Macedonia also climb in the rankings, suggesting that lower prices partially offset weaker nominal pay.

By contrast, Czechia and Estonia fall sharply in PPS rankings, indicating that living costs erode more of their nominal wage advantage than often assumed.

Stagnation Despite Inflation

A striking feature of the latest data is how many countries recorded no wage change. Belgium, Estonia, Greece, Spain, Luxembourg, and Slovenia saw no increase between July 2025 and January 2026. In contrast, Bulgaria, Hungary, Lithuania, and Slovakia delivered double-digit increases, attempting to catch up after years of lagging wage growth.

Looking ahead, minimum wages are likely to remain a sensitive indicator of both social cohesion and economic capacity. As inflation cools unevenly and growth prospects diverge, policymakers face increasing pressure to balance competitiveness with living standards.