A high salary does not always guarantee a comfortable life, since much depends on housing prices, food costs, transportation, and everyday services. In some countries, even an average income allows people not only to cover basic expenses but also to save money and travel. That is why economists are increasingly evaluating not only salary levels but also the real purchasing power of the population.
The analysis considered the relationship between average income and the cost of living in different countries. The study showed that Western European countries currently provide the best living conditions for people with average salaries, as citizens there can afford significantly more goods and services compared to other nations.
Top 10 Countries by Real Purchasing Power of Salaries
- Luxembourg — 9,300 dollars.
- Belgium — 8,300 dollars.
- Netherlands — 7,200 dollars.
- Austria — 6,800 dollars.
- United States — 6,300 dollars.
- Finland — 6,300 dollars.
- Norway — 5,800 dollars.
- Denmark — 5,500 dollars.
- Ireland — 5,400 dollars.
- Italy — 5,300 dollars.
One of the most interesting results of the ranking was Switzerland. Despite very high salaries, the country did not make it to the top positions because of extremely expensive housing, healthcare services, and daily expenses. After taking all costs into account, the real purchasing power there turned out to be lower than in several other European countries.
The study also confirmed that the difference in living standards between countries remains very large. In the leading countries, people can afford several times more goods and services than residents of countries with lower purchasing power indicators.
