File photo. [AP]
Greece ranks near the bottom among European Union countries in wage growth, widening its income gap with much of the bloc – including several former Eastern European states – despite notable gains in productivity, a new report by the Center for Planning and Economic Research (KEPE) showed.
Between 2018 and 2023, the average adjusted full-time wage in Greece, measured in purchasing power standards (PPS), rose by just 7%, compared with an average increase of 19% across the EU27. The country’s performance places it 26th among member states, underscoring persistent structural weaknesses in wage development.
The KEPE report highlights two key concerns in the Greek labor market. First, wage growth remains well below the EU average in real terms, deepening income disparities at a time when prices for essentials such as food and housing are converging across Europe.
Second, the data point to a widening gap between productivity and pay. In several major sectors of the Greek economy, labor productivity has been rising at a significantly faster rate than wages. The report notes that this trend indicates a misalignment between productivity gains and compensation.