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Economy
May 01, 2026
Analyzed by GPT OSS 120B

Greek Workers Remain Among Europe’s Poorest Despite Growth and Pay Rises

AI Summary
Five years after New Democracy took power, Greece’s economy has grown faster than the EU average, yet workers remain among the poorest in Europe. Wage hikes and tax cuts have not kept pace with inflation, and low collective‑bargaining coverage and rising work‑related deaths highlight deeper structural problems.

Growth Promises vs. Living‑Standard Reality

New Democracy entered government in 2019 pledging a 4% annual growth rate and higher living standards after a decade of austerity. Five years on, Greece boasts one of the highest growth rates in Europe, but Eurostat data shows Greek workers still rank second‑lowest in annual salaries within the EU, trailing only Bulgaria.

  • Living‑standard index rose from 65.5% to 68.5% of the EU average (2019‑2024).
  • Unemployment fell to 8% from 18%.
  • Public debt reduced by 30 points.

Wage Increases and Tax Cuts Under New Democracy

The government delivered on headline promises:

  • Minimum wage restored to 920 € per month (up from 580 €) and slated to reach 950 € in 2027.
  • Average monthly wage now 1,516 € (≈ $1,777).
  • Income‑tax brackets cut by two points, with an additional two‑point reduction per dependent child; workers under 25 pay no tax until earnings exceed 20,000 €.

Numbers Reveal Stagnant Purchasing Power

Despite nominal gains, real wages have slipped:

  • Real incomes fell by roughly one‑third over the past 15 years.
  • Inflation consistently outpaced wage growth, eroding purchasing power.
  • Collective‑bargaining coverage dropped below 20%, far short of the EU‑mandated 80% threshold.

Structural Weaknesses Undermining Greek Labour

Two systemic issues exacerbate the gap between growth and wellbeing:

  • Small‑enterprise dominance: ~90% of employment is in firms with ≤10 employees, limiting the reach of sectoral wage agreements.
  • Under‑reporting of work‑related fatalities: official count of 51 deaths in 2023 versus independent estimates of 179, with sectors employing many migrants (construction, agriculture, tourism) most affected.
  • Legislation allowing up to 13‑hour workdays increases safety risks and fatigue‑related accidents.

What the Next Five Years May Hold for Greek Workers

Analysts warn that if current trends continue, Bulgaria could overtake Greece in wage rankings within two to three years. To reverse the trajectory, Greece will need:

  • Broadening collective‑bargaining coverage to meet EU standards.
  • Targeted policies that align wage growth with inflation.
  • Enhanced occupational‑safety enforcement, especially for migrant‑heavy sectors.

Without such measures, the paradox of high growth paired with persistent poverty is likely to deepen, fueling social discontent and political pressure on the Mitsotakis administration.