In most countries, the average worker still earns less than the income researchers associate with peak reported well-being.
Research on income and well-being has identified a “satiation point,” an income level beyond which additional earnings no longer improve reported happiness. But how close does the average worker come to reaching that threshold?
An analysis from Remitly calculated the price of happiness in economies around the world and compared it with average local wages.
This graphic, via Visual Capitalist’s Niccolo Conte, ranks the 50 countries where average annual income comes closest to that threshold.
The analysis is based on Purdue University‘s income satiation research and data from the International Labour Organization, adjusted for purchasing power, inflation, and currency exchange rates.
Slovenia Is the Only Country Where Wages Exceed the Threshold
Slovenia stands alone among the 50 countries analyzed. Its average wage of $42,800 is 16.3% higher than its estimated price of happiness of $36,800, meaning the typical worker earns more than the income associated with peak reported well-being.
No other country crosses that line. Luxembourg comes closest, with wages covering 92.8% of its $118,400 happiness threshold, followed by Estonia (90.5%), Singapore (90.0%), and Lithuania (89.2%).
The data table below shows the average annual wage and price of happiness in each country, along with how close wages come to reaching that threshold:
| Rank | Country | Average Annual Wage | Price of Happiness | Wage as % of Price of Happiness |
|---|---|---|---|---|
| 1 | 🇸🇮 Slovenia | $37,000 | $43,000 | 116.3% |
| 2 | 🇱🇺 Luxembourg | $110,000 | $118,000 | 92.8% |
| 3 | 🇪🇪 Estonia | $38,000 | $42,000 | 90.5% |
| 4 | 🇸🇬 Singapore | $49,000 | $55,000 | 90.0% |
| 5 | 🇱🇹 Lithuania | $30,000 | $33,000 | 89.2% |
| 6 | 🇨🇿 Czechia | $33,000 | $38,000 | 87.8% |
| 7 | 🇱🇻 Latvia | $30,000 | $36,000 | 84.7% |
| 8 | 🇬🇷 Greece | $28,000 | $35,000 | 79.7% |
| 9 | 🇧🇪 Belgium | $88,000 | $111,000 | 79.1% |
| 10 | 🇷🇴 Romania | $21,000 | $27,000 | 76.3% |
| 11 | 🇵🇱 Poland | $24,000 | $32,000 | 74.5% |
| 12 | 🇩🇰 Denmark | $82,000 | $122,000 | 66.8% |
| 13 | 🇲🇹 Malta | $54,000 | $81,000 | 66.2% |
| 14 | 🇳🇱 Netherlands | $76,000 | $117,000 | 64.8% |
| 15 | 🇳🇴 Norway | $77,000 | $121,000 | 64.2% |
| 16 | 🇩🇪 Germany | $67,000 | $106,000 | 63.1% |
| 17 | 🇮🇪 Ireland | $67,000 | $109,000 | 61.4% |
| 18 | 🇨🇱 Chile | $13,000 | $22,000 | 60.9% |
| 19 | 🇦🇹 Austria | $70,000 | $115,000 | 60.6% |
| 20 | 🇫🇮 Finland | $69,000 | $116,000 | 59.2% |
| 21 | 🇲🇪 Montenegro | $14,000 | $24,000 | 58.4% |
| 22 | 🇫🇷 France | $59,000 | $104,000 | 57.4% |
| 23 | 🇨🇭 Switzerland | $87,000 | $155,000 | 56.4% |
| 24 | 🇷🇸 Serbia | $15,000 | $27,000 | 56.2% |
| 25 | 🇺🇸 United States | $75,000 | $135,000 | 55.8% |
| 26 | 🇨🇷 Costa Rica | $16,000 | $29,000 | 54.1% |
| 27 | 🇧🇦 Bosnia and Herzegovina | $12,000 | $23,000 | 53.0% |
| 28 | 🇭🇺 Hungary | $16,000 | $30,000 | 52.3% |
| 29 | 🇶🇦 Qatar | $42,000 | $82,000 | 51.2% |
| 30 | 🇮🇹 Italy | $46,000 | $94,000 | 49.2% |
| 31 | 🇸🇰 Slovakia | $19,000 | $39,000 | 48.9% |
| 32 | 🇪🇸 Spain | $43,000 | $88,000 | 48.4% |
| 33 | 🇰🇷 South Korea | $35,000 | $74,000 | 48.0% |
| 34 | 🇸🇪 Sweden | $56,000 | $118,000 | 47.4% |
| 35 | 🇨🇦 Canada | $51,000 | $114,000 | 44.4% |
| 36 | 🇺🇾 Uruguay | $15,000 | $35,000 | 43.9% |
| 37 | 🇲🇺 Mauritius | $8,000 | $19,000 | 43.2% |
| 38 | 🇨🇾 Cyprus | $37,000 | $94,000 | 39.4% |
| 39 | 🇦🇺 Australia | $59,000 | $161,000 | 36.6% |
| 40 | 🇧🇷 Brazil | $8,000 | $21,000 | 36.4% |
| 41 | 🇧🇴 Bolivia | $6,000 | $15,000 | 36.1% |
| 42 | 🇦🇷 Argentina | $7,000 | $20,000 | 36.1% |
| 43 | 🇬🇧 United Kingdom | $43,000 | $120,000 | 35.9% |
| 44 | 🇸🇦 Saudi Arabia | $23,000 | $65,000 | 35.5% |
| 45 | 🇦🇱 Albania | $10,000 | $28,000 | 34.8% |
| 46 | 🇨🇴 Colombia | $6,000 | $18,000 | 34.7% |
| 47 | 🇩🇴 Dominican Republic | $6,000 | $18,000 | 34.0% |
| 48 | 🇳🇿 New Zealand | $47,000 | $137,000 | 34.0% |
| 49 | 🇵🇾 Paraguay | $6,000 | $19,000 | 33.7% |
| 50 | 🇪🇨 Ecuador | $7,000 | $20,000 | 32.9% |
Central and Eastern European countries occupy seven of the top 11 spots, including Estonia, Lithuania, Czechia, Latvia, Greece, Romania, and Poland.
Their wages are modest by global standards, but their estimated happiness thresholds are also comparatively low, keeping the gap between the two smaller. A similar pattern appears in Where Wages Go Furthest Around the World, where several of the same economies rank highly for purchasing power.
High Wages Do Not Guarantee a Smaller Gap
The United States has the third-highest average wage in the study at $75,300, but it also has one of the highest prices of happiness at $134,800. As a result, wages cover just 55.8% of the threshold.
Australia has the highest price of happiness in the ranking at $161,300, more than double its average wage of $59,000. With wages covering 36.6% of the threshold, the country ranks 39th overall.
The United Kingdom (35.9%), Canada (44.4%), and New Zealand (34.0%) show a similar pattern. Despite relatively high wages, workers in these countries remain further from the income associated with peak well-being than those in several lower-wage economies in Central and Eastern Europe.
Ecuador ranks last among the 50 countries measured, with an average wage of $6,500 covering 32.9% of its $19,700 price of happiness.
If you enjoyed today’s post, check out Money Can Buy Happiness After All on Voronoi.