Wage convergence with Europe remains a “distant dream” for Greece

More than eight years after Greece exited the bailout programs and despite the return of the economy to positive growth rates, wage convergence with the European Union remains elusive, according to an interim 2025 report by the Labour Institute of the General Confederation of Greek Workers (GSEE).

The report finds that Greece’s economic recovery has not translated into a corresponding improvement in living standards, as growth rates remain insufficient to close the welfare and income gap with the EU average.

Persistent Gap in Living Standards

Greece’s GDP per capita in purchasing power standards (PPS) rose from 65.5% of the EU average in 2019 to 68.5% in 2024—an improvement of just three percentage points. Over the same period, Bulgaria improved its position by 11 percentage points, highlighting Greece’s weaker convergence dynamics.

In absolute terms, real GDP per capita stood at €17,210 in Greece in 2019 compared to €32,270 in the EU. By 2024, the gap remains roughly €14,600, underscoring that post-pandemic growth has failed to significantly narrow the distance from the European average.

Compared to Eastern European countries, Greece now lags behind the Czech Republic (90.6%), Lithuania (87.5%), Estonia (79.0%), Poland (78.4%) and Romania (77%), surpassing only Bulgaria (65.9%) and aligning closely with Latvia (68.4%).

Wages Falling Further Behind

The divergence is even more pronounced in wages. In 2009, the average annual wage in Greece (in PPS terms) stood at 91.8% of the EU average. By 2019, this ratio had fallen to 61.2%, and in 2024 declined further to just 59.1%.

In hourly terms, the average wage in Greece reached €11.3 (PPS) in 2024, compared to:

• €15.3 in Central and Eastern Europe
• €18.1 in Balkan EU member states
• €20.4 in peripheral EU economies

Across-the-Board Underpayment

Low pay appears to be structural and widespread across nearly all sectors of the Greek economy. In industry (excluding construction), the average hourly wage in Greece reached €14.1 (PPS) in 2024, compared with €21.4 in peripheral EU economies.

In services, Greek hourly wages corresponded to just:

• 72% of Central and Eastern Europe
• 56.5% of Balkan EU states
• 54.4% of peripheral economies

Significant wage gaps are observed even in sectors with high employment concentration, such as wholesale and retail trade, vehicle repair, accommodation, and food services.

Structural Divergence

According to the GSEE report, Greece is consolidating a trajectory of structural divergence, where increases in productivity and GDP fail to translate into higher wages or improved living conditions for workers—raising serious questions about the sustainability and inclusiveness of the country’s growth model.