After several years of high inflation, residents of most European countries are once again experiencing a real increase in their standard of living. New OECD data reveals where household incomes are growing the fastest, which countries are leading the rankings, and why the EU’s major economies do not always perform the best. Learn more about the countries that topped the household income growth rankings and the factors driving these changes

A rise in wages alone does not necessarily mean that people’s standard of living has improved. A far more important indicator is real disposable income—that is, the money remaining after accounting for inflation, which reflects citizens’ actual purchasing power. It is this indicator that allows us to assess the extent to which the population’s well-being is truly improving.

In May 2026, the Organization for Economic Cooperation and Development (OECD) released new data on changes in real household income across European countries. The results were quite unexpected: income grew most not in Europe’s traditional economic leaders, but in the countries of Central and Southern Europe. Poland emerged as the clear leader, with the Netherlands and Portugal also making the top three.

We’ll explain which European countries saw their populations become wealthier in 2026, which countries lagged behind, and what factors influence citizens’ well-being.

Earlier, we talked about 7 neutral countries outside of conflicts that are ideal for living and relocation.

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Where in Europe are household incomes growing the fastest in 2026?

According to the Organization for Economic Cooperation and Development (OECD), real per capita household income rose in most European countries in 2025. However, growth rates proved to be highly uneven: while in some countries the population saw a significant improvement in purchasing power, in others incomes remained virtually unchanged or even declined.

Poland topped the ranking, with real household incomes increasing by 4.1% compared to the previous year. This is the best result among all countries included in the OECD study. It is worth noting that Poland has held the top spot for the second year in a row: in 2024, growth reached a record 7.8%.

The leading countries with the fastest income growth also included:

1. Netherlands – 2.3%

2. Portugal – 2.0%

3. Denmark – 1.9%

4. Greece – 1.8%

5. Spain – 1.5%

By comparison, the average for OECD countries was only 0.8%, meaning Poland outperformed the average by more than five times.

Change in real annual household income per capita in European countries in 2024–2025, %. Source: OECD, visualization Euronews

Interestingly, high income growth rates were demonstrated primarily by countries in Central and Southern Europe. In contrast, some of the continent’s largest economies showed significantly more modest results, despite the population’s traditionally high standard of living.

In our previous article, we discussed the cost of living in the best EU countries in 2026.

Poland retains the lead for the second year in a row

Poland’s result looks particularly impressive when looking at the trend over the last two years. In 2024, real household income in the country rose by 7.8%, and in 2025, it increased by another 4.1%. Thus, Poland not only topped the ranking but also became the only country to demonstrate such high figures for two consecutive years.

Economists attribute this success to several factors. First and foremost is the rapid growth in wages. In recent years, the Polish labor market has faced labor shortages in many sectors, forcing employers to raise wages more aggressively to attract and retain workers.

At the same time, the gradual slowdown in inflation played an important role. While in 2022–2023 high prices effectively “eroded” a significant portion of wage growth, the situation began to change in 2024–2025. As a result, citizens’ incomes began to grow faster than spending on everyday goods and services.

The following factors also had a positive impact:

- Low unemployment

- Stable economic growth

- An increase in the minimum wage

- Growth in domestic consumption

- Active development of the manufacturing and technology sectors

For several years now, Poland has remained one of the most dynamic economies in the European Union. That is why the country is increasingly appearing on lists of the most attractive destinations for work, study, and long-term relocation within the EU.

In our previous article, we reported that Poland retains its status as having the cheapest labor force in the EU.

Why are household incomes declining in some countries?

Despite the overall positive trend in Europe, not all countries have been able to ensure an increase in their citizens’ well-being. According to OECD data, in 2025, real household incomes declined in only two countries—Finland and Austria.

In Finland, the decline was 1.0%, which was the worst result among all countries included in the study. In Austria, the figure fell by 0.5%.

These results do not mean that wages in these countries have become lower. The problem is that income growth rates have not kept pace with the impact of other economic factors. As a result, the population’s purchasing power has decreased slightly.

Several factors contributed to this situation:

- Weak economic growth

- Persistently high costs of housing and utilities

- Slower wage growth compared to other European countries

- The aftermath of previous inflationary waves

- A decline in business activity in certain sectors of the economy

You can learn more about the richest cities and regions in Europe in 2026 by following the link.

At the same time, even in countries with negative trends, the population’s income level remains one of the highest in Europe. For example, the average wage in Finland and Austria still significantly exceeds comparable figures in most Central and Eastern European countries.

That is why real income growth should not be considered in isolation, but rather in conjunction with the overall standard of living, housing costs, prices for goods and services, the tax burden, and employment opportunities. For those planning to move to Europe, this is often more important than a country’s ranking itself.

If you are planning to work abroad in 2026 and want to better understand the rules of employment, work permits, taxes, and basic employee rights, it is worth preparing for the move in advance. Visit World's practical working guide will help you navigate the current requirements, types of work permits, and steps to take upon arrival to avoid common mistakes and feel confident in your new life abroad.

We remind you! Which countries became the richest in the world in 2026 and how did the global ranking change over the year? New economic indicators show who was able to increase their GDP and who lost ground due to inflation and slowing growth. The ranking of the richest countries in the world in 2026 and the main changes of the year can be found at the link.

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