Greece: Inflation erodes real wage gains

Inflationary pressures in Greece are significantly offsetting nominal wage increases, resulting in minimal gains in real purchasing power. According to an analysis by the Institute of Economic and Business Research (IOBE) covering the period from the fourth quarter of 2021 to the third quarter of 2025, nominal wages per employee rose by 18.1%, while the household consumer price index increased by 17.3%. This leaves a real profit of only 0.68%.

Data indicates that real compensation has remained largely stagnant from mid-2024 through the second quarter of 2026, showing an improvement of only 1.3% compared to 2021. In the second quarter of 2026, real wages saw a quarterly increase of 0.37% and an annual increase of just 0.21%.

A study by INE-GSEE further highlights the long-term impact of the economic crisis, noting that the average real wage in 2025 is estimated at 14,998 euros, which represents a 31% decrease compared to 2009 levels. Despite improvements in employment and nominal salary figures, the rising costs of food, housing, energy, and fuel continue to erode the actual income of workers.