UEFA says the winner of the 2012 European Championship will receive up to Â23.5 million ($33.5 million).
European football's governing body agreed at its executive committee meeting to put aside Â196 million to split between the 16 finalists, an increase of Â12 million from Euro 2008.
Each team will receive Â8 million for qualifying.
In the group stage, UEFA will give teams Â1 million for wins and Â500,000 for draws, while the third-place team picks up a Â1 million bonus.
The quarterfinalists will receive Â2 million, the semifinalists Â3 million, the runners-up Â4.5 million and the winner Â7.5 million.
UEFA also announced Friday that players who have made 100 appearances for their countries will receive a commemorative cap and medal.