The decision was announced on Friday after a two-day UEFA executive meeting in Nyon which also issued a statement urging FIFA to implement reforms within three months in the wake of its current corruption crisis.
UEFA fixed the total prize money for the 16 finalists at the European championships at £173 million, compared to £163 million for Euro 2008.
Each of the 16 finalists will pocket £7 million for reaching the championship, with £800,000 on offer for a win in the group stage and £400,000 for a group stage draw.
Victory in the quarter-finals will be worth £1.6 million, a semi-final victory will add another £2.4 million to their pot, while the team winning the final will land another £6.6 million. The runner-up will collect £3.9 million.
UEFA have also decided to give a £800,000 euro bonus to the team finishing third in the group.
"This will act as an incentive if the top two qualifying places are already decided." a spokesman said.
UEFA also urged world governing body FIFA to implement its promised reforms by September after the worst crisis FIFA president Sepp Blatter has faced in his 13-year presidency.
With FIFA Executive ommittee members Mohamed Bin Hammam and Jack Warner currently suspended over allegations of bribery and a third FIFA ExCo member Chuck Blazer being questioned by FIFA's Ethics Committee, Blatter has promised to clean up FIFA's image.
He has invited American statesman Henry Kissinger and opera singer Placido Domingo on to a new committee, but UEFA's executive wants to see some positive action taken in Zurich.
In a statement UEFA said: "The Executive Committee takes good note of the will of FIFA to take concrete and efficient measures with regards to good governance, and expects to see results within the next three months and is following the situation closely."
The committee also decided to award a special official commemorative cap and a medal to players who reach 100 appearances for their national team.
On Thursday UEFA announced that the 2013 Champions League Final and UEFA Congress in 2013 would be held in England to mark the 150th anniversary of the English FA, the world's first football association.
