This Is The Income Needed To Be ‘Happy’ Around The World

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.