Which EU capitals have rents higher than minimum wages?

rss · Euronews 2026-05-11T04:12:53Z en
Euronews Business takes a closer look at gross minimum wages and average rent costs across EU countries and their capital cities. In many capitals, even the gross minimum wage is not enough to cover rent.
Housing and utility bills are the largest expenditure category for European households. According to Eurostat's most recent figures, 23.6% of household spending in the EU goes to housing, water, electricity, gas and other fuels in the EU. Rents account for a particularly large share in major cities. ADVERTISEMENT ADVERTISEMENT More importantly, rent is a significant burden for minimum wage earners, exceeding their monthly earnings in many European capital cities. So, in which capital cities does rent exceed gross minimum wage levels? And what portion of the minimum wage goes to rent across European capitals? According to a European Trade Union Confederation (ETUC) analysis based on EU data, the average cost of renting a two-bedroom flat in capital cities in the majority of EU countries exceeds the gross minimum wage. Only in five EU countries with a minimum wage does monthly rent fall below the minimum wage. However, as both Eurostat and ETUC figures are based on gross minimum wages, the actual burden on workers is likely even higher when net wages are taken into account. Prague and Lisbon hit hardest by rent costs Minimum wage earners in the Czech capital suffer the most. In Prague, the average rent is €1,710, while the minimum wage in the country is €924. That means an amount equivalent to 185% of the minimum wage is required to afford a two-bedroom flat. Lisbon ranks second at 168%. In Portugal, the monthly equivalent gross minimum wage (paid over 14 months annually) is €1,073, while the average rent in the capital is €1,710. The share of the gross minimum wage required for rent also exceeds 150% in Budapest (159%), Bratislava (158%), Sofia (154%), Athens (153%) and Riga (151%). That means minimum wage earners would need to spend their entire salary on rent, and still need more than half a salary extra to cover it. This share also exceeds 100%, meaning even the gross minimum wage is not enough to cover rent, in Valletta (143%), Paris (138%), Tallinn (131%), Madrid (125%), Bucharest (122%), Warsaw (117%), Dublin (113%), Ljubljana (105%) and Vilnius (105%). For example, in Paris, the average rent for a two-bedroom flat is €2,523, while the minimum wage in France is €1,823. In Madrid, it is €1,721 versus €1,381. Brussels and Berlin best capitals for minimum wage earners In contrast, Brussels emerges as the best EU capital for minimum wage earners to afford rent. Gross minimum wages cover 70% of rent costs there. In Brussels, the average rent for a two-bedroom flat is €1,476, while the minimum wage is €2,112. Berlin is the second best at 76%. The share of the gross minimum wage required for rent is 85% in Nicosia, 87% in Luxembourg, and 96% in The Hague. “High housing costs and low wages are driving people into poverty and the economy towards a recession,” ETUC general secretary Esther Lynch said. "The disconnect between rent and pay is completely unsustainable. When you add in the rising costs of energy and food, working people are left having to borrow for necessities and with virtually no disposable income - making saving to replace essential household appliances, or a visit to the dentist, an impossibility,” she added. Rent more affordable at country level than in capitals Compared to capital cities, country averages paint a better picture. In many countries, the gross minimum wage is enough to afford rent. However, rent still takes a significantly higher share than the 23.6% EU average household spending on housing and utilities. Among a subset of 16 EU countries analysed in this ETUC comparison, the share of the gross minimum wage required to meet rent ranges from 33% in Poland to 61% in Malta. In Poland, the gross minimum wage is €1,139, while the average rent is €376. France also fares better, at €1,823 versus €695. Greece can also be a good option for minimum wage workers outside of Athens, at €1,027 versus €408. In Spain, the minimum wage is €1,381, while the average rent is €660. ETUC recommendations ETUC calls for several policies, including. All EU member states to fully implement the minimum wage directive, including robust action plans to genuinely promote collective bargaining which will ensure more workers receive fair pay. Governments to take housing costs into account when establishing whether minimum wage rates are adequate. Increased public investment in social housing including through EU investment tools and a revision of state aid rules. Minimum wages in 2026 vary widely across Europe, both in nominal terms and purchasing power. Around 13 million workers across 21 EU countries earn the minimum wage or less, according to Eurostat. The share is significantly higher in several countries.

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