Another year of shrinking purchasing power
For yet another year, wages in Greece have failed to keep pace with the rising cost of living, a development that reflects the government’s inability to shield workers from persistent price pressures.
Official data from ERGANI, the Labor Ministry’s employment information system, show that the average gross monthly salary reached 1,363 euros in 2025, up from 1,342 euros in 2024. That amounts to a nominal increase of just 1.56%.
With inflation closing the year at 2.5%, however, real wages fell by roughly 1%. In practical terms, Greek workers are earning slightly more on paper, but they can afford less.
Price pressures remain particularly strong in essential categories such as groceries and housing, two of the largest burdens on household budgets.
A third of workers earn 1,000 euros or less
The headline figures mask a deeper structural problem.
According to the same official data, 36.5% of employees in Greece earn up to 1,000 euros gross per month. For more than one in three workers, even modest increases in rent or supermarket prices can significantly erode disposable income.
As a result, many households are left with little financial cushion, and the gap between income and basic living costs continues to widen.
A stark wage gap with the EU
The government has repeatedly highlighted Greece’s economic recovery in recent years. Yet the wage gap with the rest of the European Union remains striking.
The average monthly full-time salary across the EU stands at approximately 3,155 euros, more than double the Greek average. Eurostat data for 2024 show that Greece ranks second from the bottom in average annual wages within the bloc.
Greek workers earn an average of 17,954 euros per year, compared with 15,387 euros in Bulgaria, the only EU country with lower wages.
The figures underscore how far Greece still trails its European partners in income levels.
Fifteen years after the crisis, incomes still lag
Nearly 15 years after Greece entered international bailout programs during the fiscal crisis, real household incomes remain well below pre-crisis levels.
Despite economic growth over the past decade, real disposable income in Greece is still 15% lower than it was in 2009, the last year before the country entered financial support mechanisms to address its budget deficits.
Greece and Italy, where income is down 0.7% compared with 2009, are the only crisis-affected countries that have not recovered to pre-crisis income levels.
Elsewhere in Europe, the picture is markedly different:
- Spain: up about 6.5%
- Cyprus: up 14%
- Portugal: up 16%
- Ireland: up 21%
The contrast highlights the depth and persistence of Greece’s income shortfall.
Promises of reform, results still pending
The government has pointed to a new social agreement and changes to collective bargaining rules as part of its strategy to strengthen wages. However, officials acknowledge that it may take at least a year before workers see measurable improvements in their take-home pay.
Under EU requirements, 80% of workers should be covered by collective labor agreements by 2030, a target Greece has yet to meet.
For now, the government’s promised reforms have yet to translate into higher take-home pay for most Greek workers, leaving households to shoulder the burden of rising prices without meaningful relief.
Economic indicators reinforce the gap
Greece’s broader economic position within the EU reflects the same challenges.
GDP per capita in purchasing power standards stands at 69% of the EU average, placing Greece among the lowest-ranked countries in the bloc. Only Bulgaria (66%) and Latvia (68%) record lower levels.
By contrast, GDP per capita is far above the EU average in Luxembourg (245%) and Ireland (221%), while the Netherlands stands at 134%.
Source: ot.gr
