A recent study by Gisma University of Applied Sciences reveals that in nearly all European Union countries, the statutory minimum wage does not cover individuals’ basic living expenses, let alone those of families”, a statement noted.
The exception is Belgium, where the net minimum wage exceeds the average monthly cost of living (including rent) for a single adult.
The most critical situation is found in Cyprus, where the net minimum wage is 886 euros, while the average monthly living cost is 1,801.90 euros.
Following are countries such as the Czech Republic and Malta, which show deficits of 803.19 and 796.59 euros, respectively.
Next is Portugal, with a deficit of 717.22 euros, considering the cost of living and the wages paid.
The study indicated that the rent for a one-bedroom apartment in Portugal is 934.92 euros, which, along with other basic expenses for a single person, totals 1,620.22 euros.
For a family of four, the average income remains insufficient in 16 EU countries, with Portugal ranking among the top three.
The largest deficits are recorded in Malta (1,468.62 euros), Greece (1,368.69 euros), and Portugal (1,339.07 euros).
On the opposite end, countries such as Denmark (2,200.63 euros), Sweden (2,162.97 euros), and the Netherlands (1,735.76 euros) show surpluses.
“This study highlights an often overlooked reality: in much of Europe, earning the minimum wage is not enough to cover the cost of living. It is not merely an economic issue; it’s a matter of access and opportunity, particularly for young people starting their careers,” said university president Ramon O’Challaghan.
The analysis by Gisma University of Applied Sciences is based on the minimum and average incomes in EU member states, the cost of living, and average rents.
In each case, the net income from full-time employment (40 hours a week) was assumed.
Data from Eurostat, the Organisation for Economic Co-operation and Development (OECD), and national statistical institutes were also considered in this study.
