The share of minimal wage earnings spent on hire varies throughout Europe, from 35% in France to 56% within the Netherlands. Euronews Enterprise examines minimal wages and common hire prices in EU international locations.
“Housing, water, electrical energy, and gasoline” constituted the most important portion of family expenditures within the EU. In 2022, almost 1 / 4 of all family spending (24.1%) was allotted to those important wants, clearly displaying the substantial weight they carry in European family budgets.
This proportion varies considerably throughout European international locations and, extra importantly, in keeping with earnings ranges inside every nation. Minimal wage earners, specifically, are closely impacted, as they allocate a bigger share of their earnings to “housing, water, electrical energy, and gasoline”.
The European Commerce Union Confederation (ETUC) studies that, in 14 EU member states, hire for a property with a most of two bedrooms takes up at the least 35% of the earnings of staff on the statutory minimal wage. In 2024, on common, these staff spend 45% of their earnings on housing alone, illustrating the heavy monetary burden that housing prices place on low-wage earners throughout these international locations.
“Hundreds of thousands of working individuals in most member states see an enormous a part of their wages go away their financial institution accounts as quickly because it’s are available merely to maintain a roof above their heads,” ETUC Basic Secretary Esther Lynch mentioned.
How a lot does it value to hire a property with as much as two bedrooms in numerous European international locations? What’s the month-to-month wage of minimum-wage earners throughout Europe? And which international locations see the very best proportion of earnings spent on hire by these incomes the minimal wage?
Minimal wage varies broadly, from €477 to €2,571
Among the many 14 international locations included within the analysis, statutory minimal wages ranged from €477 in Bulgaria to €2,571 in Luxembourg. Solely six of those international locations have a minimal wage above €1,000, with three exceeding €2,000: Luxembourg, Eire, and the Netherlands.
Denmark, Italy, Austria, Finland, and Sweden don’t have a nationwide statutory minimal wage.
Common hire throughout 14 international locations is €600
The hire for a property with a most of two bedrooms ranged from €215 in Bulgaria to €1,340 in Luxembourg, whereas the common of 14 international locations is €599.
In seven international locations, the common hire was beneath €400, together with Bulgaria (€215), Romania (€277), Croatia (€311), Greece (€344), Slovakia (€371), Estonia (€387), and Portugal (€391). On the upper finish, common hire exceeded €1,000 in Luxembourg, Eire, and the Netherlands, whereas it was €618 in France and €578 in Spain.
Lease calculations are primarily based on Eurostat’s 2022 knowledge, adjusted for inflation.
Portion of minimal wage spent on hire
The portion of minimal wage earnings spent on hire affords worthwhile insights into the monetary burden hire locations on low-wage earners. Among the many 14 international locations, this proportion ranged from 35% in France to 56% within the Netherlands. On common, minimum-wage earners throughout these international locations spend 45% or 46% of their earnings on hire, relying on the calculation technique used.
Along with the Netherlands, the place the proportion reaches 56%, hire consumes over 50% of minimal wage earnings in each Eire (55%) and Luxembourg (52%).
France has the bottom proportion at 35%, that means hire accounts for roughly a 3rd of minimum-wage staff’ earnings. Croatia (37%) and Greece (38%) comply with intently behind France in having decrease rent-to-income ratios for minimal wage earners.
In Bulgaria, the place each minimal wages and hire are the bottom, staff nonetheless spend a major 45% of their earnings on hire. In Spain, this proportion is equally excessive at 44%.
The price of hire relies on nationwide averages; nonetheless, the scenario could be much more difficult in cities and capital areas, the place most jobs are concentrated.
“Regardless of paying excessive rents with low wages, their lodging is usually completely insufficient, exposing them and their households to well being situations,” mentioned Esther Lynch.
“Others are pressured to sleep on the sofa of their buddies’ residences, proceed residing with their dad and mom when doable, and even sleep of their automobiles,” she added.
How a lot do European international locations spend on housing and payments?
We are able to additionally study further knowledge from Eurostat that goes past minimal wage and hire alone. This dataset displays the share of whole family expenditure allotted to housing, water, electrical energy, gasoline, and different fuels, which varies considerably throughout Europe.
In 2022, Slovakia topped the checklist, with over 30% of family expenditure allotted to housing, water, electrical energy, gasoline, and different fuels. Finland and Denmark adopted intently, with households spending 29.6% and 29.1%, respectively, on housing and utilities.
In distinction, Malta (13.9%) and Croatia (14.9%) allocate a a lot smaller share of their bills to housing and utilities.
The chart highlights that Northern and Central European international locations face substantial monetary pressures associated to those prices.
This expenditure contains:
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Precise leases for housing
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Imputed leases for housing
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Upkeep and restore of the dwelling
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Water provide and miscellaneous providers referring to the dwelling
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Electrical energy, gasoline and different fuels
In 2019, this proportion was 25.7% within the UK, a former EU member.
