The Kostas Katikos
This year's wage increase will be 3.7% from 3.5% last year forecast the new medium-term plan submitted by the government to the European Commission on the progress of the economy. At the same time, positive prospects are recorded for the Greek labour market as forecasts show a continuation of employment growth and a further reduction in unemployment.
The development of wages is of particular importance. Pay per employee is projected to increase by 3.7% in 2026, compared with 3.5% in 2025. This rise is attributed both to increases in remuneration in the public and private sectors and to the new minimum wage strengthening, which acts as a basis for adjusting overall wages. The increase in the minimum wage strengthens workers' disposable income and supports consumption, while also helping to improve living conditions and reduce income inequalities.
These developments are directly linked to the overall recovery of the economy, but also to the successive increase in the minimum wage in recent years, which has been affecting overall labour market wages.
For employment the new medium-term forecast that the employment rate is expected to rise by 0.4% in 2026, and from 63.5% to 64%. It is noted that in 2025 employment rose by 1.2%.
A decisive role in continuing employment growth, even at a lower rate than previous years, is dependent labour, which is projected to be increased by 0.6%, showing that businesses continue to create new jobs, especially in the private sector. At the same time, unemployment is expected to decline further to 8.4%, approaching levels before the financial crisis and confirming the gradual stabilisation of the labour market.
The role of the minimum wage is important as it feeds on increases in the total remuneration of workers.
According to labour ministry data before the new minimum wage increase to 920 euros from 880 euros in 2025, 63.5% of private sector employees had a salary of over 1,000 euros, compared to 53.7% in 2024 and 36.3% in 2019.
Wages above EUR 2,000
And the average full-time salary increased to EUR 1,516, while according to data from LABOUR in five major sectors of the economy the average wage of employees exceeds EUR 2,000.
These sectors and the corresponding average wages are, financial with an average salary of EUR 2,940, energy provision with an average salary of EUR 2,613, computer programmers and consulting with an average salary of EUR 2,324, research and development activities with an average salary of EUR 2,175 and the pharmaceutical industry with an average salary of EUR 2,108.
According to ELSTAT's figures for the period 2020–2025, salaries per employee and the productivity of labour in Greece vary significantly, reflecting the impact of the pandemic and the gradual recovery of the economy over the coming years.
In 2020, wages per employee decreased by 0.5%, which is linked to the deep recession and reduction of economic activity due to the pandemic. In the same year, labour productivity recorded an even greater fall of 6%, reflecting the difficulties faced by enterprises and the labour market.
Since 2021 there has been a clear improvement. Wages rose by 1.6% in 2021 and by 2% in 2022, while productivity rose by a strong recovery with an increase of 4.1% and 9.6% respectively. The significant rise of 2022 shows the return of economic activity and the improvement of workers' efficiency.
In 2023 earnings continued their rise with an increase of 3.3%, while productivity increased by 5.3%, maintaining positive growth rates. In 2024 and 2025 earnings continued to rise by 5.8% and 3.5% respectively. At the same time, however, productivity growth declined to 3.8% in 2024 and 3.4% in 2025.
