5 Countries With the Highest Average Salaries, According to OECD

Where in the world does the average worker earn the most? The latest data from the Organisation for Economic Co-operation and Development (OECD) gives a clear answer: a small European country of fewer than 700,000 people.

The OECD's Average Annual Wages dataset, which now covers 2025, compares what full-time workers earn across its member countries. The figures are converted into US dollars at purchasing power parity (PPP) and expressed in constant 2025 prices, so they reflect what a salary can actually buy in each country rather than raw exchange rates.

Below are the five countries with the highest average wages, what workers earn in local currency, and the caveats every job seeker should keep in mind before packing their bags.

How Does the OECD Measure Average Wages?

The OECD calculates average annual wages by dividing the total wage bill from national accounts by the number of employees, then adjusting for the share of full-time workers. The result is the average gross wage per full-time equivalent employee, before income tax and social security contributions are deducted.

To make countries comparable, the OECD converts local wages into US dollars using purchasing power parities. PPP accounts for differences in price levels, so a dollar of wages in one country buys roughly the same basket of goods as a dollar in another.

This matters. A ranking based on market exchange rates would look different, because countries with expensive currencies and high living costs would appear richer than they feel to the people who live there.

Which 5 Countries Pay the Highest Average Salaries?

The 2025 ranking is led by Luxembourg, followed by Switzerland and the United States. The Netherlands and Belgium are separated by little more than US$100 a year.

The table below lists the top five, along with the average wage in each country's own currency at 2025 prices.

Source: OECD Average Annual Wages dataset, 2025, constant prices at 2025 PPP. Figures are gross averages per full-time equivalent employee.

Why Do Luxembourg and Switzerland Pay So Much?

Luxembourg's average wage has climbed steadily, from about US$96,365 in 2023 to US$98,530 in 2025 in PPP terms. The country is a major European financial center, home to banks, investment funds and EU institutions, and many of its high-paying jobs are filled by cross-border commuters from France, Belgium and Germany.

Switzerland, in second place, combines a strong financial sector with high-value industries such as pharmaceuticals, precision engineering and watchmaking. In local currency, the average Swiss full-time wage is about CHF 98,334 a year.

Both countries are also among the most expensive places to live in Europe. Rent, health insurance and everyday services cost far more than in most OECD countries, which eats into the apparent advantage.

How Do the US, Netherlands and Belgium Compare?

The United States is the only non-European country in the top five. Its average wage rose from US$83,866 in 2023 to US$86,977 in 2025 at constant prices, driven by high pay in technology, finance and professional services. The US average is pulled up by very high earners, so the typical worker earns less than the average suggests.

The Netherlands and Belgium are nearly tied. Interestingly, Belgium's average wage in euros (EUR 61,747) is slightly higher than the Netherlands' (EUR 61,492), but the Netherlands edges ahead after adjusting for price levels.

Just below the top five are Austria (US$78,301), Denmark (US$78,090) and Germany (US$76,285), according to the same dataset.

What Should You Keep in Mind Before Comparing Salaries?

Average wages are a useful benchmark, but they are not take-home pay. Tax and social security deductions vary widely. Belgium, for example, is known for some of the heaviest labor taxes in the OECD, so net pay there can be much lower than the gross figure.

Averages can also be misleading where income is unequal, because a small number of very high earners lifts the mean. Median wages, which show what the worker in the middle earns, are often lower.

Finally, the OECD dataset only covers its member countries. Gulf states, Singapore and others that are often cited for high pay are not included. Indonesia, which is working through its OECD accession process, is also not part of the dataset.

Conclusion

Luxembourg, Switzerland, the United States, the Netherlands and Belgium pay the highest average wages in the OECD, with Luxembourg roughly 52% above the OECD average.

For anyone weighing a move abroad, these figures are a starting point, not the whole picture. Taxes, living costs, housing and how pay is distributed all shape what a salary is really worth.