House rent in most EU capitals exceed minimum wage
In numerous EU capitals, rent prices outstrip the minimum wage, significantly impacting low-income earners. Cities like Prague and Lisbon record the highest rent-to-income ratios, especially for two-bedroom apartments. Other capitals also indicate rental costs above the gross monthly minimum wage. However, Brussels and Berlin provide relatively affordable housing options for those earning minimum…
The cost of housing has become prohibitively expensive for many minimum-wage workers across the European Union, according to a recent analysis by the European Trade Union Confederation (ETUC). Housing expenses account for a substantial portion of household spending, with Eurostat reporting that they make up 23.6% of EU households' total expenditures.
The analysis reveals that major European cities have the highest rent-to-minimum-wage ratios, creating a significant financial strain on those earning the minimum wage. In particular, Prague emerges as the most expensive capital city for minimum-wage earners, with average rent for a two-bedroom flat at 1,710 euros, representing 185% of the gross minimum wage of 924 euros.
Other cities facing similar challenges include Lisbon (168%), Budapest (159%), Bratislava (158%), Sofia (154%), Athens (153%), and Riga (151%). Across multiple capitals, rent costs exceed the gross minimum wage, placing undue financial pressure on low-income workers.
Even in Paris, where the minimum wage is 1,823 euros, average rent is a steep 2,523 euros. Madrid sees a minimum wage of 1,381 euros against an average rent of 1,721 euros. While Brussels has the most favorable ratio, with rent at 70% of the minimum wage, other cities like Nicosia, Luxembourg, and The Hague see ratios above 85%.
However, the situation is not uniformly dire across the EU. Rent costs represent a lower share of minimum wage in countries like Poland (33%) and Malta (61%). The ETUC has called for stronger collective bargaining, factoring housing costs into minimum wage setting, and increased investment in affordable social housing to alleviate the burden on workers.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
