Bulgaria leads the European Union in real wage growth over the 2020-2025 period, recording a cumulative increase of 37.4%, according to Eurostat data compiled by Euronews. This places the country first among 30 European economies in terms of real income growth.

Across the EU, average gross hourly wages rose from 21.5 euros in 2020 to 26.2 euros in 2025, an increase of 21.9%. However, inflation over the same period reached 25.6%, meaning that on average real wages across Europe declined by around 3%, reflecting a drop in purchasing power.

Out of the 30 countries examined, real wages decreased in 12 and increased in 18. In many cases, the gains were limited, with half of Europe recording movements between minus 5% and plus 5%.

Bulgaria stands out significantly, followed by Serbia with 25.4%, Croatia and Lithuania with 21.1% each. Romania, Hungary and Poland also registered solid increases ranging from roughly 18% to 20%. Within the euro area, Slovenia, Latvia and Greece posted more moderate but still positive growth.

At the same time, all four major EU economies recorded declines in real wages. Italy saw the sharpest fall at 9.2%, followed by Spain at 5.9%, while Germany and France posted decreases of just over 3%.

The divergence is partly explained by inflation and nominal wage dynamics. In Bulgaria, nominal wages rose by 84.2% over the period, compared with inflation of 34.1%. Hungary and Romania also saw strong nominal increases, but with high inflation reducing the real impact.

Structural factors also played a role, including lower starting wage levels in Eastern Europe. Bulgaria remains the EU country with the lowest average hourly wage at 10.5 euros in 2025, compared with 49.7 euros in Luxembourg and 34.5 euros in Germany.

The report also notes that Bulgaria's wage growth was supported by policy changes, including a rule introduced in 2023 requiring the minimum wage to be at least 50% of the average gross salary.

Despite strong convergence trends, significant disparities persist across Europe, with higher wage levels concentrated in the north and west, and lower levels in the east of the continent.