Data extracted in December 2025

Planned article update: December 2026

Personal transfers and compensation of employees

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Data extracted in December 2025

Planned article update: December 2026

Highlights

Total outflows and inflows of personal transfers and compensation of employees for the EU reached new historical highs in 2024.
The EU remained a net sender of personal transfers and net receiver of employees’ compensation in 2024.
In relative terms Croatia, Latvia and Luxembourg were most dependent on inflows of personal transfers and compensation of employees in the EU in 2024.
Switzerland was the main source of inflows related to cross border compensation of EU employees in 2024.
Vertical bar chart showing inflows of personal transfers and compensation of employees as percentage of GDP in the EU, individual EU countries, Iceland, Montenegro, Bosnia and Herzegovina, Albania, Serbia, North Macedonia and Kosovo for the year 2024. For more details please use the link to the source dataset code below the image.
Inflows of personal transfers and compensation of employees, 2024
Source: Eurostat (bop_rem6), (nama_10_gdp)

This article presents statistics and comments on recent developments relating to resource flows benefitting households in the European Union (EU) and the rest of the world. It refers in particular to personal transfers (i.e. transfers sent by resident migrants to their home economies) and gross compensation of employees from seasonal-, short-term-, and cross-border workers according to the concept of the 6th Edition of the IMF Balance of payments and international investment position manual (BPM6). Data on these two standard components of balance of payments statistics provide an interesting picture on potentially important sources of external funding that contribute to GNI and disposable income of the recipient countries. The data situation currently does not allow for producing "personal remittances" according to the BPM6. Please refer to the CONTEXT section below and to Remittances according to the BPM6 manual for more information.

The EU remained a net sender of personal transfers and net receiver of employees’ compensation in 2024

In the context of the EU, the respective net of outflows minus inflows of personal transfers and compensation of employees with the rest of the world generally occurs with opposite signs. Outflows of personal transfers from the EU to the rest of the world are higher than inflows; at the same time, EU employees earned more compensation outside of the EU than nonresidents in the EU, resulting in larger inflows than outflows (Figures 1a and 1b).

Line chart showing net personal transfers of the EU with the extra-EU as euro millions over the years 2015 to 2024. Each year has a stacked column representing personal transfers inflows as positive values and personal transfers outflows as negative values. For more details please use the link to the source dataset code below the image.
Figure 1a: Personal transfers of the EU with the Extra-EU
Source: Eurostat (bop_rem6)


Line chart showing net compensation of employees of the EU with the extra-EU as euro millions over the years 2015 to 2024. Each year has a stacked column representing compensation of employees inflows as positive values and compensation of employees outflows as negative values. For more details please use the link to the source dataset code below the image.
Figure 1b: Compensation of employees of the EU with the Extra-EU
Source: Eurostat (bop_rem6)

Personal transfers kept dominating outflows from the EU…

After continuous growth since 2015, outflows of personal transfers and compensation of employees fell for the first time in 2020 but then increased again considerably to a record level of €71.4 billion in 2024 (Figure 2a). Outflows consist, to the largest part, of personal transfers sent abroad (in 2024: €52.1 billion).

Stacked vertical bar chart showing outflows from the EU as euro millions over the years 2015 to 2024. Each year's column has two stacks representing personal transfers and compensation of employees. For more details please use the link to the source dataset code below the image.
Figure 2a: Outflows of personal transfers and compensation of employees from the EU
Source: Eurostat (bop_rem6)

…while compensation of employees dominated inflows to the EU

Inflows of personal transfers and compensation of employees have been increasing at a slower pace since 2015, showed a drop in 2018 and in 2020, followed by increases again. The extent of inflows to the EU grew from €46.9 billion in 2015 to €68.6 billion in 2024. Inflows are mostly nurtured by compensation of employees received by EU border, seasonal or short-term workers contracted outside the EU (in 2024: €53.8 billion).

Stacked vertical bar chart showing inflows to the EU as euro millions over the years 2015 to 2024. Each year's column has two stacks representing personal transfers and compensation of employees. For more details please use the link to the source dataset code below the image.
Figure 2b: Inflows of personal transfers and compensation of employees to the EU
Source: Eurostat (bop_rem6)

Growth rates plunged in 2020 but bounced back after

Between 2016 and 2024, the average annual growth rate in outflows considerably exceeded the average annual nominal growth in EU GDP (4.4%) seemingly indicating favorable labour market conditions for migrant, seasonal and cross border workers in the EU. Accordingly, nominal outflows increased at an average annual growth rate of over 7.6% between 2016-2024. Compared to outflows, inflows had a significant lower average growth rate of 4.5% during this period. In year 2020, marked by COVID-19 containment measures, nominal growth rates for EU GDP (-3.9%), outflows (-2.4%) and inflows (-5.1%) turned negative but bounced back to positive growth between 2021 and 2024. During this period the average nominal outflows growth rate (8.8%) kept above the ones for inflows (7.6%) and nominal EU GDP (7.3%) (Figure 3).

Line chart showing sum of personal transfers and compensation of employees of the EU with the extra-EU as percentage annual growth rate. Three lines represent outflows, inflows and GDP over the years 2016 to 2024. For more details please use the link to the source dataset code below the image.
Figure 3: Sum of personal transfers and compensation of employees of the EU with the Extra-EU, annual growth rate
Source: Eurostat (bop_rem6), (nama_10_gdp)

More than half of the amount of cross border compensation of employees and personal transfers remained within the EU

About 57% of total outflows and 56% of total inflows of all EU countries’ cross- border personal transfer and compensation of employee flows in 2024 took place within the borders of the EU. This does not come as a surprise given that EU citizens can move and work freely within the EU labour market. There are, however, exceptions: outflows of personal transfers and compensation of employees from Poland (97%), Spain (92%) and Croatia (91%) went predominantly to economies outside of the EU; while also Ireland (99%), Italy (82%) and Austria (69%) received their inflows mostly from outside the EU. The most EU-centered economies were Luxembourg with less than 1% of its outflows recorded to beyond the EU, and Slovenia with only 6% of its inflows received from outside the EU (see Tables 1 and 2).

Table showing total, intra-EU and extra-EU outflows of personal transfers and compensation of employees as euro millions in the EU, individual EU countries, some EFTA countries and some candidate countries for the years 2022, 2023 and 2024. For more details please use the link to the source dataset code below the image.
Table 1: Total outflows of personal transfers and compensation of employees
Source: Eurostat (bop_rem6)


Table showing total, intra-EU and extra-EU inflows of personal transfers and compensation of employees as euro millions in the EU, individual EU countries, some EFTA countries and some candidate countries for the years 2022, 2023 and 2024. For more details please use the link to the source dataset code below the image.
Table 2: Total inflows of personal transfers and compensation of employees
Source: Eurostat (bop_rem6)

Western European countries were amongst the main senders and recipients of these cross-border flows

In absolute terms, the major economies contributing to outflows of personal transfer and compensation of employees' flows (intra-EU plus extra-EU) in 2024 were Germany (13% of total outbound flows of all EU countries), France (11%), Luxembourg and the Netherlands (with both 10%). Outgoing flows from Germany, Luxembourg and the Netherlands predominantly originated from income generated through border, seasonal or short-term work in these countries, while outflows in France mainly derived from personal transfers sent abroad.

The major recipient economies of personal transfers and compensation of employee funds (inflows from intra-EU plus extra-EU) in 2024 were France (23% of total inbound flows of all EU countries), Germany (13%) and Belgium (9%); all predominantly based on income generated through border, seasonal and short-term work by their residents abroad (see Maps 1a and 1b).

Map 1a: Personal transfers and compensation of employees
Source: Eurostat (bop_rem6)

Map 1b: Personal transfers and compensation of employees
Source: Eurostat (bop_rem6)




Zooming in, cross-border personal transfers and income flows can be analyzed in a bilateral context, in which geographical proximity could play an important role. For instance, in 2024, France observed major corridors with all its neighbouring countries representing significant inflows, most notably from French residents’ border and seasonal working in Switzerland (€21.3 billion)[1] and Luxembourg (€8.6 billion); while France recorded the highest outflows of personal transfers to Morocco (€3.4 billion). In a similar manner, Germany (with Switzerland)[2], Italy (with Switzerland €4.9 billion) and Belgium (with Luxembourg €4.2 billion) benefited from their neighbouring countries in terms of compensation received from border and seasonal work relationships. In addition, Belgium and Luxembourg also recorded significant inflows from the European Institutions domiciled in their jurisdictions (Belgium €5.2 billion, Luxembourg €1.9 billion).

Beyond the limits of geographical proximity, the Netherlands was the major source of income for seasonal workers from Poland (€3.5 billion) and from Romania (€1.6 billion), while for personal transfers Spain’s transfer payments to Morocco reached €1.5 billion in 2024. Regarding transactions of EU countries with Asia, Greece recorded significant outflows of compensation of employees to the Philippines (€0.9 billion).

Switzerland remained the major attractive location for employment of EU citizens outside the EU in 2024, generating considerable outflows in compensation of employees to the EU for France (€21.3 billion), Germany, Italy (€4.9 billion), as well as for Portugal (€1.1 billion) and Austria (€0.9 billion)[3]. These countries benefitted significantly from their residents working in Switzerland. In the EU Spain (€1.5 billion from France), Portugal (€1.4 billion from France) and Poland (€1.1 billion from Germany) were in 2024 the major receivers of personal transfers.

Table showing major corridors for personal transfers and compensation of employees in 2024 as outflows in euro millions. The sending country, recipient country, amounts and BOP item are shown. For more details please use the link to the source dataset code below the image.
Table 3: Major corridors for personal transfers and compensation of employees in 2024, outflows
Source: Eurostat (bop_rem6)

Among EU countries, Croatia, Latvia and Luxembourg were most dependent on personal transfer and compensation of employees inflows in 2024

Dependency rates are measured by showing the share of inflows in personal transfers and compensation of employees in relation to a respective country's GDP. According to this, the highest dependency rates in the EU were observed for Croatia (7.2% of GDP), Latvia (3.1% of GDP) and Luxembourg (2.7% of GDP) in 2024 (see Figure 4), while the least reliant economies in the EU were Ireland (0.1% of GDP), Greece (0.2% of GDP) and Finland (0.3% of GDP). By comparison, southeastern non-EU countries appeared much more dependent on this source of income: Kosovo[4] (17.3% of GDP), Bosnia and Herzegovina (11% of GDP) and Montenegro (10.3% of GDP)[5].

Vertical bar chart showing inflows of personal transfers and compensation of employees as percentage of GDP in the EU, individual EU countries, some EFTA countries and some candidate countries for the year 2024. For more details please use the link to the source dataset code below the image.
Figure 4: Inflows of personal transfers and compensation of employees, 2024
Source: Eurostat (bop_rem6), (nama_10_gdp)

For France and Hungary the positive net balance of personal transfers and compensation of employees turned their current account deficits into surpluses

For some countries, net inflows of personal transfers and compensation of employees are important sources of external funding and contributors to GNI and the recipient’s disposable income.

In 2024, 2 countries recorded a current account surplus, which would have turned into a deficit without the impact of the net incoming flows (see Figure 5). Most prominently, France showed a current account surplus of €2.7 billion; without these net incoming flows, this surplus would have turned into a considerable deficit of €15 billion in 2024. Responsible for this switch was mostly positve net compensation of employees from Switzerland and Luxembourg. Hunagry showed a current account surplus of €3.3 billion, which would have turned into a current account deficit of €0.7 billion mostly due to net compensation of employees’ inflows from Austria.

Romania, Belgium and Croatia, amongst others, could considerably reduce their negative current account balances through these net inflows. The current account deficit for Romania would have been €35.7 billion instead of €28.9 billion which includes transactions related to personal transfers and compensation of employees. Belgium exhibited a current account deficit in 2024 of €2.3 billion, which would have widened to €7.3 billion without for example taking into account of net compensation of Belgian employees’ working for EU institutions (€5.2 billion) and for Belgian residents working in Luxembourg (€4.2 billion).

Vertical bar chart showing current account balance and balance of personal transfers and compensation of employees as euro billions in France, Romania, Belgium, Croatia, Portugal, Hungary, Slovakia and Bulgaria. Each country has three columns representing current account, personal transfers and compensation of employees, and current account without personal transfers and compensation of employees for the year 2024.
Figure 5: Current account balance and balance of personal transfers and compensation of employees, 2024
Source: Eurostat (bop_rem6), (bop_c6_a)

Total EU net inflows were dominated by Switzerland while net outflows spread among many countries

The EU recorded by far the highest surplus in 2024 in personal transfers and compensation of employees (€36.8 billion) vis-à-vis Switzerland, mostly due to compensation of employees flows to France, Germany and Italy. It was followed by the United Kingdom, with a surplus of €4.8 billion, mostly due to personal transfers to Romania and to personal transfers and compensation of employees to Poland [6]. The EU recorded also a considerable surplus of €3.6 billion with the United States. The balance surplus of €2.6 billion with Norway was mostly achieved due to compensation of employees’ inflows to Sweden. However, overall, the EU had a net deficit vis-à-vis the rest of the world when adding up all total inflows and outflows for personal transfers and compensation of employees. Major net outflows in 2024 were recorded with Morocco (€6.5 billion), the Philippines (€2.7 billion), India (€2.1 billion), Türkiye (€1.8 billion), and China (€0.9 billion). Net outflows to Morocco, Türkiye and India were based on personal transfers, while those to the Philippines and China resulted from both personal transfers and compensation of employees. (Figure 6).

Vertical bar chart showing sum of EU personal transfers and compensation of employees with the rest of the world as euro millions in Switzerland, UK, US, Norway, India, China, Türkiye, Philippines and Morocco. Each country has three columns representing inflows, outflows and balance for the year 2024.
Figure 6: Sum of EU personal transfers and compensation of employees with the rest of the World, 2024
Source: Eurostat (bop_rem6)

Source data for tables and graphs

Data sources

Data on incoming and outgoing personal transfers [7] and compensation of employee flows according to the BPM6 are available from dedicated tables (bop_rem6) in the Eurostat database under the balance of payments domain, with the most comprehensive coverage starting from 2005. The online tables are available for each component on an annual basis and are reported by Member States by end-September each year with an extended geographical breakdown (Geo 5 – main world aggregates and a large selection of countries). The EU aggregates also contain confidential data as well as Eurostat estimations for missing data. Eurostat regularly collects quarterly data on personal transfers and compensation of employees but with fewer geographical details. All disseminated data are subject to revisions.

Context

Data on personal transfers and compensation of employees are collected based on Regulation (EC) No. 184/2005 of the European Parliament and of the Council of 12 January 2005 on Community statistics concerning balance of payments, international trade in services and foreign direct investment.

The data situation currently does not allow the production of figures on so-called "personal remittances". Personal remittances is a BPM6 concept that derives from the following components. From the viewpoint of the recipient country (inflows):

Personal transfers receivable
+ Compensation of employees receivable
- Taxes and social contributions payable (related to compensation of employees)
- Transport and travel expenditures payable by residents employed by nonresidents (as defined under business travel in BPM6 paragraphs 10.91–10.93)
+ Capital transfers receivable from households.

From these components, only the standard components of personal transfers and (gross) compensation of employees are currently available[8].

The reason for incomplete data on personal remittances lies in the considerable information asymmetries between host and recipient economies and the relative insignificance of remittance flows in industrial nations in their role as host economies. For recipient economies abroad, they often represent, however, a substantial source of income (see above measures in relation to GDP and current account balance). Furthermore, the heterogeneous character of remittance transactions makes the compilation process more complex as countries usually rely on a combination of resources (data collections from the financial sector, surveys on migrant or commuter populations, estimations based on macroeconomic modelling). Additionally, many remittance flows take place through unofficial channels[9].

Bilateral discrepancies are the consequence when analysing intra-EU flows, i.e. personal transfer and compensation of employee flows between the Member States of the EU. In theory, intra-EU inflows (credits) should equal mirror intra-EU outflows (debits). Asymmetries, calculated as intra-EU inflows (credits) minus intra-EU outflows (debits), show positive values for personal transfers and mostly negative values for compensation of employees. It is often the case that personal transfers are more relevant for beneficiary countries and thus credits are higher (and presumably of better quality), while for compensation of employees, debit data are easier to compile as they are available from administrative sources.

Users should keep in mind these shortcomings when analysing the data. The use of macroeconomic modelling has certainly increased knowledge about these international flows and can address - to some extent - the problem of under-coverage.

In view of the large movements of refugees and migrants in recent years, a renewed interest on international remittances in the context of migration evolves among European policy-makers, emphasizing the significant impact of remittances and resource flows on developing economies. For a snapshot on migration and remittances from a global perspective, the World Bank publishes, on a regular basis, valuable updates on recent trends and migrations[10][11], as well as annual estimates of personal remittances under its World Development Indicators.

Footnotes

  1. Due to the unavailability of Swiss data, this figure was derived from inbound flows reported by France. ↑
  2. Germany flagged its data vis a vis Switzerland as confidential ↑
  3. Due to the unavailability of Swiss data, figures were derived from inbound flows reported by France, Italy, Portugal and Austria. ↑
  4. This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence. ↑
  5. Source: Eurostat ↑
  6. Due to the unavailability of data from the United Kingdom, main counterpart countries were derived from inbound flows reported by Romania and Poland. ↑
  7. In some countries the memo item workers' remittances is available instead of personal transfers ↑
  8. For more details see in Eurostat Statistics Explained Remittances according to the BPM6 manual ↑
  9. What Are Remittances? (imf.org) ↑
  10. Trends in Migration and Remittances 2017, World Bank ↑
  11. Migration and remittances ↑

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