Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
net wages in Europe
Economy

Wages in Europe: How marital status affects net income

09.03.2025
2 min read

How wages are calculated in Europe: the main scenarios

Net wages in Europe can be very different from gross wages. The amount of a professional’s final income depends on many factors.
There are four main ways of calculating net pay in Europe. It depends on the employee’s marital status, the presence of children and other variables. Most EU countries also apply progressive tax rates.

Scenarios for net pay

Gross income is the key factor in forming net wages. From this, social security contributions and income tax are deducted. For households with children, family allowances are added. Other features also affect the calculation of net income.
In general, there are four basic scenarios:
1. Single person without children. The ratio of net to gross income varies from country to country. For example, it is over 60% in Belgium and almost 90% in Cyprus. The EU average is 68.8%. Switzerland (81.4%), Estonia (81%) and the Czech Republic (80%) have high net income ratios. In Germany, Romania, Denmark and Lithuania, net income is less than 65% of gross income.
2. Married couple without children. Net income, in this case, is close to the first option, but there are some differences. On average, in European countries, couples receive 69% of their gross income from taxes and social contributions.
wages in Europe3. A family with a working spouse and two children. The amount of net income increases compared to the scenario without children. It does not matter whether the household consists of a single person or a couple. The minimum ratio is 70.4% in Romania, and the maximum is 109.3% in Slovakia. The EU average is 82.7%. Denmark, Norway and Finland are among the countries with the lowest net income, which is less than 76% of gross income.
4. Working couple with two children. In this scenario, the lowest net income is recorded in Belgium (65.7%). The highest income for households with two children is in Slovakia (89.5%). The regional average is 73.8%.
According to the statistics, couples with children earn higher wages. This is especially true if there is only one working adult. In many countries, this figure is as high as 80% of the gross amount. This trend indicates more favourable conditions for families with children.

Countries with the highest net wages

The average gross annual income in the European Union is €41 004, with a net income of €28 217. The lowest net salary is in Bulgaria – € 9 355. The highest after deductions is in Luxembourg – €49 035. The average net income of a family with children and one breadwinner in the EU countries is €33 940. The difference between the income of a single person and a family with children is due to two factors. A couple receives around €1 846 in family benefits. They also pay 3 764 less in income tax.

Tags: Economy
0
Previous Post How Tadashi Yanai built a successful UNIQLO clothing brand Next Post How the global palladium market is changing: forecasts

You Might Also Like

German bank
Economy
German bank Deutsche Bank published scenarios of the world economy development
02.04.2021
2% tax increase
Economy
How will the Japanese economy and population be affected by the 2% tax increase?
08.12.2020
Chinese authorities
Economy
The Chinese authorities have introduced a number of measures to support the economy
28.12.2020
PGNiG
Economy
PGNiG intends to reduce its dependence on Russian gas
24.09.2020
minimum wage in Lithuania
Economy
The minimum wage in Lithuania will increase in 2025
17.11.2024
UAE fields of oil and gas
Economy
UAE fields to be developed by Eni and SNOC
28.11.2021

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Popular Posts

  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Spain’s economy performs best in the EU
  • Li Ka Shing: How can success be achieved without money and education?
  • Skolkovo analysts: the Russian energy market is suffering losses
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram

© 2024 CHASLAU KONIUKH. ALL RIGHTS RESERVED. Expert in marketing and project management, international investments, financial analyst.

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics