Optimization of Yb-free Er-doped fiber for lasers and amplifiers cladding pumped at 976 nm was performed in this Letter. The single-mode fiber design includes an increased core diameter of 34 μm and properly chosen erbium and co-dopant concentrations. We demonstrate an all-fiber high power laser and power amplifier based on this fiber with the record slope efficiency of 40%. To the best of our knowledge, the achieved output power of 75 W is the highest power reported for such lasers.