The share of income spent on rent by minimum-wage workers varies greatly across Europe, revealing deep disparities in affordability. While some countries manage to keep rent burdens relatively low, others force minimum-wage earners to spend more than half their income on housing costs. This dynamic highlights the broader economic pressures faced by low-income households and raises questions about the sustainability of current wage and housing policies.
Housing Costs Dominate Household Budgets
In 2022, housing, water, electricity, and gas accounted for the largest share of household expenditures in the EU, averaging 24.1%. For minimum-wage earners, however, this percentage is often significantly higher. The European Trade Union Confederation (ETUC) reports that in 14 EU countries, rent for a small property consumes at least 35% of a minimum-wage worker's income.
Rent Burden by Country: Striking Contrasts
According to 2024 estimates, minimum-wage earners across these countries spend, on average, 45% of their income on rent. However, this figure varies significantly:
France: Minimum-wage workers spend the lowest proportion of their income on rent (35%).
Netherlands: Workers face the highest burden, spending 56% of their income on rent.
Ireland and Luxembourg: Rent consumes over half of minimum-wage earnings, at 55% and 52%, respectively.
Bulgaria: Despite low absolute rents (€215/month), the burden is still high at 45%, reflecting the low statutory minimum wage (€477/month).
Minimum Wages and Rent Costs: Key Figures
Statutory Minimum Wages: Range from €477 in Bulgaria to €2,571 in Luxembourg. Only six countries exceed €1,000, with three surpassing €2,000: Luxembourg, Ireland, and the Netherlands.
Average Rent: Across the 14 countries studied, rents for two-bedroom properties average €599/month. In countries like Luxembourg and Ireland, rent exceeds €1,000/month, while in Bulgaria, Romania, and Croatia, it remains under €400.
Broader Economic Implications
Low-income earners often face additional challenges, including inadequate housing conditions and overcrowding. Esther Lynch, General Secretary of ETUC, highlights the emotional and physical toll:
"Millions of working people see a huge part of their wages leave their bank accounts as soon as it’s come in simply to keep a roof above their heads."
Beyond rent, overall household expenditure on housing and utilities also varies widely. Slovakia allocates the highest percentage of household spending to these essentials (30%), while Malta and Croatia allocate the least (14-15%).
A Call for Policy Action
These disparities in rent burden emphasize the urgent need for better wage policies and affordable housing solutions. Striking a balance between fair wages and sustainable housing costs will be critical in addressing the growing economic divide among EU member states.
Source: Euronews
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