Comparing Tech Salaries: US vs Europe – Who Earns More?

By Aoibhinn McBride

Many believe that workers in the United States, especially in major cities like New York and San Francisco, earn more than those in Europe, particularly in tech jobs.

Take prompt engineers, for example. In the last year, they earned an average salary of about $300,000 in the U.S. In contrast, European salaries for similar roles range from €40,000 in Germany and the Netherlands to €100,000 in Switzerland.

However, the average salary in the U.S. is now $59,228 (over €54,000). In more than a dozen European countries, including Switzerland, Iceland, Luxembourg, Norway, Belgium, Austria, Germany, the Netherlands, Denmark, Finland, Sweden, Ireland, and France, workers now earn more in take-home pay.

According to Eurostat, wages across the EU and the euro area increased by 4% recently.

Switzerland

In 2022, Switzerland had the highest average annual wage in Europe at €106,839.33. The country has lower taxes, with an average income tax of 18.6%, compared to the OECD average of 24.9%. This results in higher take-home pay. The strong financial sector also drives high salaries, with many finance professionals earning over €100,000.

Iceland

Despite the challenges during the 2008 financial crisis, Iceland now offers some of the highest salaries in Europe.

Luxembourg

Luxembourg adjusts its minimum wage every two years to keep up with living costs. Average wages in Luxembourg are €79,903 per year, supported by a strong financial sector.

Norway

Norway ranks high in happiness and offers attractive salaries. The average yearly salary is €74,506. The country addresses gender equality through policies like a 60/40 gender board quota. Despite a higher tax rate of 28%, education standards and a culture of equality boost earnings across all job types.