Greek Wages Still 15% Below Pre-Crisis Levels

Greek wages and household incomes remain significantly below pre-crisis levels, according to Eurostat data, highlighting the ongoing challenge of boosting real incomes despite a decade of economic recovery.

Fifteen years after the outbreak of the sovereign debt crisis, Greece continues to struggle with the legacy of the downturn. While economic growth has strengthened in recent years, real household income remains around 15% lower than in 2009, the last year before the country entered international financial support mechanisms.

Strengthening incomes remains a key priority for citizens, with attention now turning to the impact of measures introduced this year. The government’s economic team has directed most of the available fiscal space toward changes in the tax scale aimed at increasing disposable income. However, many analysts argue that these interventions fall short of meeting real needs.

At the same time, the effects of the new social agreement and changes to collective bargaining are not expected to be felt in workers’ pay packets for at least a year. According to the Ministry of Labour’s recently published five-year action plan, the European Union target of 80% workforce coverage by collective agreements is not expected to be achieved before 2030.

A comparison with 2009 shows that households in most EU countries now enjoy higher disposable incomes. Spain has recorded an increase of around 6.5%, while Cyprus and Portugal have reached gains of 14% and 16% respectively. Ireland has seen an improvement of approximately 21%. Greece, at -15%, and Italy, at -0.7%, are the only crisis-hit countries that have not recovered their pre-crisis income levels.

Differences are also evident in GDP per capita in purchasing power standards, a key indicator of economic activity. Greece remains among the lowest-ranked EU countries, at 69% of the EU average, above only Bulgaria at 66% and Latvia at 68%. By contrast, Luxembourg stands at 245% of the EU average and Ireland at 221%, followed at a distance by the Netherlands at 134%.

Recent Eurostat figures further confirm Greece’s weak position in terms of wages. The country records the second-lowest average annual full-time salary in the European Union, at approximately €18,000, above only Bulgaria, where the average stands at €15,400. The EU average is €39,800, while countries with similar demographic and productive profiles perform far better. Spain’s average annual full-time salary reaches €40,800, and Italy’s stands at €23,500.

Despite relatively low wages, Greece ranks among the EU countries with the highest prices for basic goods, intensifying pressure on household budgets. A report published last year by the Parliamentary Budget Office estimated that Greece would need between five and seven years to return to wage levels seen in 2007.