In the EU, highly educated people earn on average 38% more than those with a medium level of education, and 68% more than those with a low level of education. These figures vary considerably across Europe, with regional variations.
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Getting just one more year of education can boost a person’s income by about 7% in Europe, according to the European Commission’s Investing in Education 2025 report.
It therefore fits that across all 36 European countries, university graduates consistently earn more than those with medium or lower levels of education.
But to what extent does the level of education affect income across Europe?
According to Eurostat, the EU median disposable net income, adjusted for household size, was €21,644 in 2024. This refers to the total household income, after tax and other deductions, that is available for spending or saving. It covers earnings from work, investment, and cash social benefits.
Graduates earn 38% more than those with medium education
This median annual net income varies significantly by educational attainment: €17,517 for low education, €21,401 for medium, and €29,490 for high. That means university graduates in the EU earn 38% more than those with medium education and 68% more than those with low education.
Education is grouped into three ISCED levels:
Low ( 0–2): pre-primary, primary, and lower secondary
Medium (3–4): upper secondary and post-secondary non-tertiary
High (5–8): tertiary, including university degrees
The income gap between high (tertiary) and medium education ranges from 6% in Iceland to 62% in Turkey. Among EU member states, it varies from 15% in Austria to 57% in Lithuania.
Regional trends exist: Eastern vs. Nordic Europe
The earnings premium of highly educated workers over those with a medium level of education shows a regional pattern. In general, the earnings gap is highest in Eastern and parts of Southeastern Europe, lowest in the Nordics, and moderate in Western Europe.
In addition to Turkey (62%) and Lithuania (57%), big gaps appear in Albania (54%), Romania (51%), Bulgaria and Montenegro (48% each), Latvia (44%), and Serbia (40%). In these countries, having a university degree provides a substantial earnings premium.
In the Nordics and parts of Central Europe, the education-related earnings gap is relatively small. It comes to 6% in Iceland, 9% in Norway, 16% in Sweden, 19% in Denmark, and 15% in Austria.
Among Europe’s five largest economies, the earnings gap between those with high and medium levels of education is moderate and close to the eurozone average (31%).
In both Italy and Germany, the gap amounts to 30%, the United Kingdom records a 33% disparity, and France and Spain see a 34% gap.
High vs. low education: Wider earnings gap
In the EU, comparing median annual net income, the high-over-low education gap widens to 68%, versus 38% for high-over-medium.
Among the EU countries, the low-to-high gap ranges from 29% in Denmark to 178% in Bulgaria. When 36 countries are included, the lowest differences are seen in Iceland (14%) and Norway (24%).
Although the ratios and country rankings shift, the regional pattern seen in the high vs. medium comparison largely holds in the high vs. low case as well.
In seven countries, university graduates earn at least twice as much as those with low education: Bulgaria (+178%), Romania (+148%), Serbia (+114%), Turkey (+111%), Albania (+108%), North Macedonia (+106%), and Montenegro (+100%).
These countries also tend to have some of the lowest minimum wages in Europe.
The gap is under 50% in eight countries: Iceland (14%), Norway (24%), Denmark (29%), Finland (36%), the Netherlands (41%), Sweden and Slovenia (48% each), and Austria (49%).
Wider gaps in low-income countries
Overall, the correlation is moderate, but countries with lower incomes tend to have bigger gaps.
For example, among people with high (tertiary) education, the 10 countries with the lowest median annual net income are: Albania (€4,348), North Macedonia (€4,919), Montenegro (€6,429), Turkey (€7,542), Serbia (€8,598), Hungary (€11,580), Slovakia (€11,752), Romania (€12,463), Bulgaria (€12,569), and Greece (€14,166).
The gap between income and educational level
Differences in tax and transfer systems are a major reason the net-income gap between the highly educated and those with medium or low education varies across countries.
Dr Gabriel Zajur, social expert for the European Union Agency for Fundamental Rights, emphasised the role of ‘tax-benefit design’ and noted that the figures refer to incomes after taxes and transfers.
One of our previous articles, ‘Where do workers pay the highest and lowest taxes?’, shows that personal income tax rates vary significantly across Europe, with the highest levels seen in the Nordics and the lowest in Eastern Europe.
The labour market structure is another driver. “Country-specific factors such as the strength of labour unions, the extent of collective bargaining agreements and the quality of working environments also play a significant role,” OECD’s Education at a Glance 2024 report suggested.
Zajur also pointed to sector-wide bargaining, strong minimum standards, substantial benefits, and active labour-market policies in the Nordic countries, the Netherlands, and Austria.
“The small premium is not a failure of higher education; it's a success of the social model,” he argued.
Zajur explained that in Germany, Austria, and Switzerland, dual tertiary–vocational education and training (VET) systems can channel low education graduates into productive, well-paid roles.
“Medium‑educated incomes rise, narrowing the graduate gap without heavy redistribution,” he added.
In countries where highly educated people earn significantly more than others, Zajur noted the influence of weaker safety nets, wider productivity gaps between sectors, greater informality, and a higher prevalence of small firms.
