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Albania ranks at the bottom of Europe in terms of median annual net income for university graduates. A graduate earns an average of just 4,348 euros per year, almost half the level in Serbia.
On the other hand, the income gap by education level is among the highest in Europe. A person with a university degree in Albania earns on average more than twice as much as someone with low education (+108%) and 54% more than an individual with secondary education.
europe
In the EU, people with higher education earn on average 38% more than those with medium education and 68% more than those with low education. These figures vary significantly across Europe, with regional variations.
Getting just one extra year of education can increase a person's income by around 7% in Europe, according to the European Commission's Investing in Education 2025 report.
Therefore, it is natural that in all 36 European countries, university graduates consistently earn more than those with secondary or lower education.
But to what extent does education level affect income across Europe?
According to Eurostat, the median net disposable income in the EU, adjusted for household size, was €21,644 in 2024. This indicator refers to the total household income, after taxes and other deductions, that is available for spending or saving. It includes income from work, investments and social benefits in cash.
"Graduates earn 38% more than those with a secondary education"
These median annual net earnings vary significantly by educational level: €17,517 for those with low education, €21,401 for those with high education and €29,490 for those with high education. This means that university graduates in the EU earn 38% more than those with high education and 68% more than those with low education.
Education is classified into three levels according to ISCED*:
Lower (0–2): pre-school, primary and lower secondary education
Upper (3–4): upper secondary and non-university post-secondary education
Higher (5–8): higher education, including university degrees
The income gap between higher (tertiary) and secondary education ranges from 6% in Iceland to 62% in Turkey. Among EU member states, the difference ranges from 15% in Austria to 57% in Lithuania.
Regional trends: Eastern Europe vs. Nordic
The income advantage of workers with higher education over those with secondary education follows a regional pattern. Overall, the income gap is largest in Eastern Europe and parts of Southeastern Europe, smallest in the Nordic countries, and average in Western Europe.
In addition to Turkey (62%) and Lithuania (57%), large differences appear in Albania (54%), Romania (51%), Bulgaria and Montenegro (48% each), Latvia (44%) and Serbia (40%). In these countries, a university degree offers a significant income advantage.
In the Nordic countries and parts of Central Europe, the education-related income gap is relatively small. It amounts to 6% in Iceland, 9% in Norway, 16% in Sweden, 19% in Denmark and 15% in Austria.
In Europe's five largest economies, the income gap between those with higher education and those with secondary education is moderate and close to the Eurozone average (31%).
In Italy and Germany, the gap reaches 30%, the United Kingdom registers a difference of 33%, while France and Spain each score 34%.
Biggest gap: Higher education versus lower education
In the EU, comparing median annual net income, the gap between higher and lower education reaches 68%, compared to 38% for the higher–secondary education comparison.
Among EU countries, the gap from the lowest to the highest level ranges from 29% in Denmark to 178% in Bulgaria. When 36 countries are included, the smallest differences are seen in Iceland (14%) and Norway (24%).
Although the ratios and rankings by country vary, the regional pattern observed in the higher education–secondary education comparison remains largely the same for the higher education–lower education case.
In seven countries, university graduates earn at least twice as much as those with low education: Bulgaria (+178%), Romania (+148%), Serbia (+114%), Turkey (+111%), Albania (+108%), North Macedonia (+106%) and Montenegro (+100%).
These countries also tend to have some of the lowest minimum wages in Europe.
The gap is below 50% in eight countries: Iceland (14%), Norway (24%), Denmark (29%), Finland (36%), the Netherlands (41%), Sweden and Slovenia (48% each), as well as Austria (49%).
The biggest gap in low-income countries
Overall, the relationship is average, but lower-income countries tend to have larger gaps.
For example, among people with higher education (tertiary), the 10 countries with the lowest median annual net income are: Albania (€4,348), North Macedonia (€4,919), Montenegro (€6,429), Turkey (€7,542), Serbia (€8,598), Hungary (€11,580), Slovakia (€11,752), Romania (€12,463), Bulgaria (€12,569) and Greece (€14,166)./Taken from Monitor
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