European capitals where minimum wage fails to cover two-bedroom rent in major cities

Housing and utilities take up as much as 23.6% of total household expenditure across the European Union, according to Eurostat data cited by Euronews. For people living in large cities, rent can consume a particularly large share of income—so much so that, in many EU capitals, the average cost of renting a two-bedroom apartment exceeds the gross minimum wage.

Rent costs vs. minimum wages in EU capitals

An analysis by the European Trade Union Confederation (ETUC), using EU data, finds that in the capitals of most EU countries, the average rent for a two-bedroom apartment is higher than the gross minimum wage. Only five EU countries have minimum wages low enough that monthly rent falls below this wage.

Because the Eurostat and ETUC comparisons are based on gross wages, the effective burden on workers may be higher when net wages are considered.

Where the gap is most pronounced

In Prague, minimum-wage earners face some of the steepest affordability gaps. The average rent for a two-bedroom apartment is 1,710 euros, while the minimum wage is 924 euros. That means a worker would need 185% of the minimum wage to rent a two-bedroom apartment.

Lisbon follows with a rent-to-minimum-wage ratio of 168%. In Portugal, the gross monthly minimum wage (paid over 14 months a year) is 1,073 euros, while the average rent in the capital is 1,710 euros.

The ratio also exceeds 150% in Budapest (159%), Bratislava (158%), Sofia (154%), Athens (153%) and Riga (151%). In these cases, minimum-wage workers would have to spend their entire pay on rent and still have more than half a month’s income needed to cover other costs.

In several other capitals, the ratio remains above 100%, including Valletta (143%), Paris (138%), Tallinn (131%), Madrid (125%), Bucharest (122%), Warsaw (117%), Dublin (113%), Ljubljana (105%) and Vilnius (105%). For example, in Paris the average rent for a two-bedroom apartment is 2,523 euros compared with a French minimum wage of 1,823 euros. In Madrid, rent is 1,721 euros versus a minimum wage of 1,381 euros.

Capitals where rent is comparatively more affordable

Brussels is the EU capital where minimum-wage workers can afford rent best. There, the gross minimum wage covers 70% of rent costs. The average rent for a two-bedroom apartment is 1,476 euros, while the minimum wage is 2,112 euros.

Berlin ranks second with a 76% coverage rate. The rent-to-gross-minimum-wage ratio is 85% in Nicosia, 87% in Luxembourg and 96% in The Hague.

Impact on workers and household finances

ETUC secretary-general Esther Lynch said: “High housing costs and low wages are pushing many people into poverty and putting the economy at risk of recession.” She added that the gap between rent and wages is unsustainable, and that with energy and food costs rising, workers may be forced to borrow to meet basic needs while having little disposable income.

Lynch also noted that limited disposable income makes it harder to save to replace essential appliances or to visit the dentist.

National averages show a less severe picture

Compared with capital cities, national averages are described as more positive. In many countries, gross minimum wages are sufficient to cover rent. However, rent still takes a larger share than the EU average of 23.6% of total household expenditure on housing and utilities, leaving the overall burden significant.

Across 16 EU countries in the ETUC analysis, the share of gross minimum wage needed to cover rent ranges from 33% in Poland to 61% in Malta.

Examples from selected countries

In Poland, the gross minimum wage is 1,139 euros and the average rent is 376 euros. France also fares better, with a minimum wage of 1,823 euros versus an average rent of 695 euros.

Greece may be more workable for minimum-wage workers outside Athens, where the minimum wage is 1,027 euros and the average rent is 408 euros. In Spain, the minimum wage is 1,381 euros and the average rent is 660 euros.

Minimum wage coverage across the EU

Eurostat estimates that around 13 million workers in 21 EU countries earn the minimum wage or less. The share is notably higher in some countries, reflecting wide variation in minimum wage levels across the EU in both nominal terms and purchasing power.