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Cost and Compensation

Salary Benchmarking

Comparing the pay for a role against market data for similar roles, locations and seniority, to set a competitive and fair salary.

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Salary benchmarking means comparing the pay for a role against market data for similar roles, at similar seniority and in similar locations, to set a salary that is competitive and fair. It is a working practice, not a legal term, and the quality of the answer depends on the quality of the data.

For a US company hiring its first people in Europe, benchmarking answers two questions: what it takes to attract strong candidates in a given country, and how that compares with the cost of a US hire.

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Official pay data you can use

SourceWhat it coversLatest data
Eurostat Structure of Earnings SurveyEU-wide gross earnings by occupation, age, education and company size2022, published every four years
Statistics EstoniaAverage and median gross wages, quarterly, by sector and occupationQ2 2026: average €2,243 a month
Statistics Poland (GUS)Earnings by occupation, every two yearsOctober 2024, published February 2026
DestatisAverage gross earnings for Germany2024: €4,701 a month for full-time staff
US BLS OEWSUS wages for about 830 occupations, by state and metro areaMay 2025, published 15 May 2026

Official data lags and averages across all employers. For remote roles at international companies, add live market signals: salary ranges in current job ads, and what shortlisted candidates ask for. The BLS release puts the US mean annual wage across all occupations at $69,770 (BLS), a reminder of how broad these averages are.

Benchmarking under the Pay Transparency Directive

The EU Pay Transparency Directive turns benchmarking from good practice into documented practice. Employers need pay structures based on objective, gender-neutral criteria such as skills, effort, responsibility and working conditions (Article 4), must share the starting pay or range with applicants (Article 5), and must make pay-setting criteria accessible to staff (Article 6). A benchmark you can explain is now part of compliance.

What it means when you hire in Europe

  1. Define the role and level before looking at numbers.
  2. Pull local data for the country, then check live ranges for remote roles. Our country-by-country guide is a starting point.
  3. Set a gross annual range, see gross pay, and publish it in the job ad.
  4. Compare the fully loaded cost with the US equivalent in the US vs Europe salary calculator.

This is general information, not legal or tax advice. Rules differ by country and change, so confirm your case with a local lawyer or accountant.

Euro Remote Talent runs searches across Europe for a flat $6,500, with a shortlist of three vetted candidates in 21 days and a 12-month replacement guarantee, through Hiring Done For You. If you would rather run the search yourself, a job post is $299, live for 60 days, and the fee is credited in full if you later move to the done-for-you service.

Related terms

Frequently asked questions

Where can I find official salary data for European countries?
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Eurostat's Structure of Earnings Survey gives comparable EU data by occupation every four years, most recently for 2022. National statistics offices publish more recent figures: Statistics Estonia quarterly, Poland's GUS by occupation every two years, and Destatis annual earnings for Germany.

Should I benchmark a European hire against US or local salaries?
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Start from the market you are hiring in, at the right level for the role, and check what remote roles at international companies are offering there. Then compare the fully loaded cost with the US equivalent, rather than comparing salaries alone.

Julien Sicard, founder of Euro Remote Talent
Julien Sicard
Founder, Euro Remote Talent

Julien founded Euro Remote Talent, which helps people in Europe find remote jobs and places European remote professionals with remote companies.

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