Have you ever wondered where people genuinely start their day with a smile instead of relying on caffeine to survive the morning? While many face the daily grind of traffic snarls and awkward elevator conversations, certain countries seem to live in a state of ongoing contentment. While scientists have yet to determine if it’s due to something in the water, favorable genetics, or simply the wisdom of disconnecting from work emails after 6 PM, these nations have discovered what the rest of us are still trying to figure out: the formula for happiness.
But how are the happiest countries actually ranked? After all, happiness is subjective and varies greatly from person to person. According to William Russell, several factors are considered in calculating a nation’s happiness. These include access to international health insurance, insights from the World Happiness Report 2024, Numbeo’s Quality of Life Index, the US News Quality of Life Index, CEOWORLD Magazine’s Quality of Life Report, and the Happy City Index developed by the Institute for Quality of Life. In addition, GDP per capita and average life expectancy also play a major role. Using a weighted average of all these elements, the happiest countries in the world for 2025 were determined.
Switzerland sits at the top of this list.
- Switzerland
The happiest city in Switzerland is Zurich, which boasts a Quality of Life Index of 204 and an Average Life Evaluation score of 7.060. Previously recognized as the best country to live in and among the top ten healthiest countries, Switzerland remains a beacon of well-being.
The average annual salary in Switzerland is an impressive US$79,204 as of 2023, placing the country in the top five globally for income. While these high wages come with a steep cost of living—rents are nearly twice that of the UK, and everyday expenses are 64% higher—residents are surrounded by awe-inspiring natural beauty. From the Matterhorn to Lake Lucerne, many Swiss spend their free time hiking, skiing, and paragliding.
Working conditions in Switzerland are also favorable. Employees benefit from a maximum workweek of 45 to 50 hours, a minimum of four weeks of vacation, and a 25% overtime pay premium.
Swiss society values honesty, diligence, and respect. Interactions are generally formal, with handshakes as the norm. Their policy of neutrality in global affairs mirrors a deep cultural emphasis on peace and security.
- Australia
Brisbane takes the title of the happiest city in Australia, with a Quality of Life Index of 185.5 and an Average Life Evaluation of 7.057. The country ranks highly in all happiness metrics, from life satisfaction to quality of life. It was previously named the best place for expats, the seventh healthiest, and the ninth best country for work.
The average Australian earns around US$68,000 annually. Nearly 90% of its 27 million people reside in urban areas. Although the cost of living is approximately 4% higher than in the UK, Australia offers a wealth of recreational activities, from surfing at Bondi Beach to exploring the vast Outback.
The workforce is protected under the Fair Work Act 2009, which stipulates a 38-hour workweek, four weeks of paid leave, and a minimum wage of AUS$23.23 per hour. A notable 2024 amendment introduced the “right to disconnect,” ensuring workers are not obligated to respond to work-related communications after hours.
Australian culture is a fusion of Western traditions with both indigenous and immigrant influences. It emphasizes liberty, fairness, and respect, often expressed through good manners and an egalitarian spirit. As Australians like to say, they “work hard and play hard,” enjoying leisure time with barbecues, music, and drinks.
- Sweden
In Sweden, Gothenburg is the happiest city, with a Quality of Life Index of 186.7 and an Average Life Evaluation of 7.344. Although it dropped one spot from the previous year, Sweden remains a model of mental well-being, consistently ranked as one of the least stressed and healthiest countries.
Swedish life is guided by the concept of “Lagom,” meaning “just the right amount,” encouraging balance in all aspects. The country provides universal healthcare, leading gender equality, and a strong welfare system. This support coexists with a thriving private sector.
Swedish workplaces are some of the most productive globally. Employer-employee relationships are collaborative, and any disputes are often mediated through trade unions. Average income is about US$38,310, and income tax ranges from 32% to 45%, funding healthcare, education, and pensions.
Swedish culture is egalitarian and inclusive. Regardless of age, gender, ethnicity, or religion, fairness is upheld. Their calm, trusting nature is embodied in the national tradition of “Fika,” where coworkers take coffee breaks together to recharge and connect.
- Norway
Ålesund leads as the happiest city in Norway, with a Quality of Life Index of 189 and an Average Life Evaluation of 7.302. Norway lives up to its tourist slogan “Find your Happy Place,” continually appearing among the top happy countries due to its wealth, social structure, and quality of life.
Norway has strategically used its oil wealth to support society since the 1960s. It boasts one of the smallest income inequality gaps, high public spending, and a GDP per capita among the highest in the world. The average salary is US$63,900, though the cost of living is 18% above the UK’s.
Norwegian workers are among the most productive globally, generating over US$119 per hour worked. Work is capped at 37.5 hours weekly, with at least one break every 5.5 hours and a minimum of 25 vacation days each year.
Norwegian values include equality, humility, and social cooperation. “Dugnad” is the principle of collective effort toward shared goals. “Janteloven,” or the unwritten cultural code, promotes modesty and social unity over individualism.
- The Netherlands
Amsterdam is the Netherlands’ happiest city, featuring a Quality of Life Index of 207.5 and an Average Life Evaluation of 7.319. The Dutch have climbed the happiness rankings thanks to improvements in work-life balance, social support, and quality of life.
Though small in size, the Netherlands is a heavyweight in European politics, finance, and law. The cost of living is about 3% higher than in the UK, but the country compensates with clean cities and an efficient public transport network.
Dutch life emphasizes harmony, outdoor activity, and continuous learning. The average salary is US$46,000, with higher taxes funding essential services like healthcare and education. Its economy thrives in services and technology, with strong ties to Germany and France.
The Dutch uphold constitutional values like equality and freedom. They are culturally rich, enjoying frequent festivals, art, and literature. Despite their national pride, they maintain close cultural relationships with neighboring countries.
In Conclusion
These five nations have found ways to integrate joy into their everyday lives, from Switzerland’s alpine adventures to the Netherlands’ bicycle commutes and art festivals. As the article puts it, “whether it’s the Swiss perfecting the art of chocolate consumption, Australians turning every weekend into a beach party, or Scandinavians creating social systems so good they make the rest of us question our life choices,” these countries have discovered how to build happiness into the fabric of their societies.
The search for happiness is a shared journey, but having the right systems in place to protect and support it is just smart planning. After all, you’ll want to be financially protected while you’re busy learning to say ‘I’m extremely content’ in Dutch, Norwegian, or Swedish.