“Average wage (AW)” is an important metric as all pension modelling results are presented as multiples of this measure. The average for all OECD countries was USD 44 439 in 2020 and USD 60 737 in PPP terms.
Pensions at a Glance 2025
OECD and G20 Indicators
Table 7.5 reports the OECD’s full-time average wage (AW) levels for the year 2024. The wage earnings are defined as gross wages before deductions of any kind (including personal income taxes and social security contributions), but including overtime pay and other cash supplements paid to employees.
Average wages are displayed in national currencies and in US dollars at market exchange rates and in US dollars at purchasing power parities, PPP. The PPP exchange rate adjusts for the fact that the purchasing power of one dollar varies between countries: it allows for adjusting to account for differences in the price of a basket of goods and services between countries.
Wage earnings across the OECD countries averaged USD 44 439 in 2024 at market exchange rates. Switzerland has the highest level at USD 103 465. This is over 15 times the level recorded in Colombia, and nearly 11 times that of Mexico.
At PPP, wages averaged USD 60 737. Switzerland’s levels remain the highest amongst OECD countries, followed by Luxembourg, Denmark and Germany. Mexico is the lowest, followed by Colombia at USD 20 293.
Average wages for the other major economies have been sourced from the latest ILO Global Wage Report (ILO, 2024). The wages range from a low of USD 2 514 in Indonesia to a high of USD 32 762 in Saudi Arabia, at market exchange rates.
Between 2023 and 2024 nominal wages increased in every country, and by an average of 7.4% in the OECD on average (Figure 7.5). Average inflation for the same period was 7.6% though, with very large cross-country variations, from a low of 0.5% in Costa Rica to a high of 54% in Türkiye. On average, this means that wages fell slightly in real terms on average, although they increased in 15 OECD countries. Wages in Costa Rica increased by over 7 p.p. above inflation. Increases of over 3 p.p. were also found in Belgium, Luxembourg, Portugal and Türkiye. Conversely, wages in Finland fell in real terms by 6 p.p. Czechia, Iceland and the Slovak Republic also recorded decreases of at least 3 p.p. below inflation.
Definition and measurement
The “average worker” earnings series (AW), defined as the average full-time adult gross wage earnings is presented in the OECD report Taxing Wages. The full definition and industries covered for each country can be found within that publication. In summary the standard assumption for calculating average wage earnings is based on Sectors B-N of the International Standard Industrial Classification of All Economic Activities (ISIC Revision 4, United Nations). The calculations are based on the earnings of a full-time adult worker (including both manual and non-manual). They relate to the average earnings of all workers in the industry sectors covered. No account is taken of variation between males and females or due to age or region. The earnings calculation includes all cash remuneration paid to workers in the industries covered taking into account average amounts of overtime, cash supplements (e.g. Christmas bonuses, thirteenth month) and vacation payments typically paid to workers in the covered industry sectors.
However, not all countries are able to include overtime pay, vacation payments and cash bonuses according to the definition. It is not possible for all countries to exclude part time workers. As a result, average wage estimates used here can differ from national estimates, sometimes quite substantially.
Further reading
ILO (2024), Global wage report 2024‑25 Is wage inequality decreasing globally?, International Labour Organization,: https://doi.org/10.54394/CJQU6666.
OECD (2023), Purchasing Power Parities – Frequently Asked Questions (FAQs), OECD, Paris, www.oecd.org/sdd/prices-ppp/purchasingpowerparities-frequentlyaskedquestionsfaqs.htm.
OECD (2025), Taxing Wages 2025: Decomposition of Personal Income Taxes and the Role of Tax Reliefs, OECD Publishing, Paris, https://doi.org/10.1787/b3a95829-en.
OECD (2009), Pensions at a Glance 2009: Retirement-Income Systems in OECD Countries, OECD Publishing, Paris, https://doi.org/10.1787/pension_glance‑2009‑en.
Note: USD = the United States of America Dollar, PPP = purchasing power parity.
Source: OECD (2025), Taxing Wages 2025, https://doi.org/10.1787/8c99fa4d-en, ILO (2022), Global wage report 2024‑25, https://doi.org/10.54394/CJQU6666, and OECD’s National Accounts Database.
Percentage change in average wage between 2023 and 2024, with annual inflation for reference
Source: OECD (2025), Taxing Wages 2025, https://doi.org/10.1787/8c99fa4d-en. Consumer prices annual inflation sourced from OECD.Stat.