Greek workers remain among Europes poorest despite economic growth and wage increases

Greece’s Economic Performance Compared to EU Peers

Statistics show that Greeks have experienced a decline in income since the post-2009 global financial crisis. According to Eurostat, the EU statistical agency, Greek annual salaries rank second-lowest in the European Union after Bulgaria. This is despite Greece’s economy growing at almost twice the EU rate since the COVID-19 pandemic in 2020.

In comparison, other Eastern European countries that became free-market democracies and EU members around the same time as Greece have surpassed it. For example, Bulgaria has seen a significant increase in its annual salaries, rising by 11 points between 2019 and 2024. In contrast, Greek living standards rose only 3.5 percentage points during the same period.

The General Confederation of Workers in Greece (GSEE) reported that Greek living standards increased from 65.5% to 68.5% of the EU average over the past five years. However, this growth was largely driven by economic expansion rather than wage increases.

In recent years, the New Democracy party has made efforts to improve wages and reduce taxes. The minimum wage was recently restored to €920 ($1,080) per month, up from €580 ($680), and is set to rise to €950 ($1,114) next year. Average monthly wages have also increased to €1,516 ($1,777).

The government has taken steps to reduce taxes, including slashing income tax brackets by two points this year and further reducing them for dependent children. Workers under 25 are now exempt from paying tax until they earn more than €20,000 ($23,450).

Labour minister Efi Achtsioglou noted that while Greek incomes have fallen by a third over the past 15 years, inflation has increased at a faster rate. This has resulted in a decline in purchasing power for many Greeks.

Greece’s labour market is also characterized by a lack of collective wage bargaining agreements, with fewer than 20% of workers covered by such agreements. This has led to concerns about worker safety and fair wages.

Source: Al Jazeera