Wages in Greece grew faster than those in several major European economies in the second quarter of 2026, but the increase was almost entirely offset by inflation, leaving little improvement in workers’ purchasing power.
Total compensation per employee, including employer social security contributions, rose 4.44% between April and June compared with the same period a year earlier. Over the same period, inflation measured by the EU’s harmonized consumer price index averaged 4.4%, effectively eliminating the increase in real compensation.
The figures highlight the difference between nominal wage growth and changes in purchasing power. Although compensation has increased at a faster rate this year, inflation has also accelerated, limiting the gains for employees.
In the second quarter, compensation per employee increased 4.2% in Germany, 4.1% in Spain, 2.2% in France and 2% in Italy.
NEWSLETTER TABLE TALK
Never miss a story.
Subscribe now.
The most important news & topics every week in your inbox.
Greece recorded faster growth than all four countries, although the comparison does not account for differences in wage levels. The gap between Greek salaries and the European average remains substantial, meaning that faster increases would need to be sustained over time to produce significant convergence.
Real Wage Growth Has Slowed Since 2024
The figures also show how the relationship between wage growth and inflation has changed over the past two years. In the second quarter of 2024, compensation per employee in Greece increased 6.8% year over year, while inflation stood at 2.7%. This represented a real increase of approximately 4%.
By the second quarter of 2025, compensation growth had slowed to 3.8%, while inflation had risen to 3.2%, reducing the real gain to around 0.6%. In the final quarter of 2025, compensation increased by approximately 2.2%, slightly below the inflation rate of 2.4%, resulting in a marginal decline in real earnings.
Nominal compensation growth accelerated again in 2026, reaching 3.6% in the first quarter and 4.4% in the second. Inflation, however, increased from 3.1% to 4.4% over the same periods. As a result, the difference between wage growth and inflation narrowed from around 0.5 percentage points in the first quarter to virtually zero in the second.
Greek Salaries Remain Well Below the EU Average
The comparison with other European countries also needs to account for differences in absolute earnings.
According to Eurostat, the average annual full-time adjusted salary in Greece was approximately €18,000 in 2024, compared with €39,800 across the European Union. Greek salaries were therefore equivalent to about 45% of the EU average. Only Bulgaria, with average annual earnings of €15,400, ranked lower.
These figures measure nominal salaries in 2024 rather than current purchasing power. Nevertheless, they provide an indication of the difference in earnings between Greece and the rest of the EU. Narrowing that gap would require Greek wages to grow consistently faster than the European average over an extended period.
Nearly Six in 10 Employees Earn €1,200 or Less
Data from ERGANI, Greece’s employment reporting system, provide a more detailed picture of domestic earnings. In 2025, the average gross monthly salary for full-time employees stood at €1,516. When part-time employment was included, the average was €1,362.66.
The distribution of earnings shows that a substantial proportion of employees received considerably less than the average full-time salary. Some 36.5% of salaried workers earned up to €1,000 gross per month, while another 24.29% earned between €1,001 and €1,200. Combined, these groups accounted for approximately 61% of employees, meaning that roughly six in 10 earned no more than €1,200 a month before taxes and social security contributions.
For employees at these wage levels, increases that match inflation preserve the purchasing power of their earnings but do not provide an improvement in real income.
Source: OT.gr