Explore how salaries vary drastically across 30 OECD countries in this eye-opening analysis. Visualized by Marcus Lu for Visual Capitalist, the data reveals surprising disparities from Luxembourg’s lavish earnings to Mexico’s stark contrasts. Adjusted for purchasing power parity (PPP), the findings showcase top-paying nations like the U.S. and Switzerland, where high living costs demand hefty incomes. Meanwhile, struggling economies like Greece and Mexico struggle with low-wage sectors, driving down average salaries. This snapshot of global earnings exposes the wide spectrum of economic opportunities and challenges worldwide.
Salaries differ between nations for a multitude of reasons, including labor regulations, economic development, and cost of living. Determining the global average income level can be challenging due to these factors.
In light of this, Marcus Lu of Visual Capitalist created a visual representation of the average yearly salary of 30 OECD nations after adjusting for purchasing power parity (PPP). This indicates that the stated prices account for variations in inflation and cost of living between nations.
Key Insights and Highlights
The Organization for Economic Co-operation and Development (OECD), a global institution that advances laws to enhance social and economic well-being, is the source of this data. It comprises 38 member nations, yet in this case, information was not available for every one of them.
| Rank | Country | Average Annual Salary (USD, PPP adjusted) |
|---|---|---|
| 1 | 🇱🇺 Luxembourg | 78,310 |
| 2 | 🇺🇸 U.S. | 77,463 |
| 3 | 🇨🇭 Switzerland | 72,993 |
| 4 | 🇧🇪 Belgium | 64,848 |
| 5 | 🇩🇰 Denmark | 64,127 |
| 6 | 🇦🇹 Austria | 63,802 |
| 7 | 🇳🇱 Netherlands | 63,225 |
| 8 | 🇦🇺 Australia | 59,408 |
| 9 | 🇨🇦 Canada | 59,050 |
| 10 | 🇩🇪 Germany | 58,940 |
| 11 | 🇬🇧 UK | 53,985 |
| 12 | 🇳🇴 Norway | 53,756 |
| 13 | 🇫🇷 France | 52,764 |
| 14 | 🇮🇪 Ireland | 52,243 |
| 15 | 🇫🇮 Finland | 51,836 |
| 16 | 🇸🇪 Sweden | 50,407 |
| 17 | 🇰🇷 South Korea | 48,922 |
| 18 | 🇸🇮 Slovenia | 47,204 |
| 19 | 🇮🇹 Italy | 44,893 |
| 20 | 🇮🇱 Israel | 44,156 |
| 21 | 🇪🇸 Spain | 42,859 |
| 22 | 🇯🇵 Japan | 41,509 |
| 23 | 🇵🇱 Poland | 36,897 |
| 24 | 🇪🇪 Estonia | 34,705 |
| 25 | 🇨🇿 Czechia | 33,476 |
| 26 | 🇵🇹 Portugal | 31,922 |
| 27 | 🇭🇺 Hungary | 28,475 |
| 28 | 🇸🇰 Slovak Republic | 26,263 |
| 29 | 🇬🇷 Greece | 25,979 |
| 30 | 🇲🇽 Mexico | 16,685 |
Based on this statistic, the highest average yearly earnings are found in Luxembourg, the United States, and Switzerland.
These three nations all have well-established service industries and highly developed economies, which usually translate into more well-paying jobs. These nations also have relatively high living expenses, which means that in order to maintain a level of living, larger incomes are required.
Greece and Mexico are at the bottom of this table with the lowest average salaries. In Mexico’s example, the manufacturing and agricultural sectors account for a sizable share of the nation’s lower-paying employment.
Conversely, Greece has seen persistently high unemployment since the global financial crisis of 2008. Because there is an excess of labor, this drives down wages.
Last month, GreatGameInternational reported that, according to the MIT Living Wage Calculator, Massachusetts tops the list, requiring $116,022 yearly, while West Virginia is the most affordable at $78,790.
