According to OECD’s 2022 data, Greece has the 7th highest average working time among the 38 countries of the Organisation but is also 3rd from the bottom in average wages. According to the same data, Greece ranks 34th – out of 35 countries – with an average weekly salary in Greece estimated at $ AUD 761..60 (456.31 euros), with an average working week of 36.27 hours; the average hourly wage in Greece is $AUD 20.98 (12.58 euros). Mexico is the only OECD country with a lower hourly wage, which is $AUD 11.41.
In terms of working hours, only four of the 35 have longer working hours per week than Greece: Israel (36.38 hours), South Korea (36.56 hours), Chile (37.75 hours) and Mexico (42.81 hours). The highest weekly wage is recorded in Iceland, at $AUD 2328, much higher than all four of its Scandinavian neighbours; Icelandic workers earn – on average – nearly $AUD 83 per hour, multiple times that of what Greeks make.
Luxembourg ranked second, is the only other country with an average weekly salary of more than $AUD 2285, while the US ($AUD 2270), Switzerland ($AUD 2139.60) and Belgium ($AUD 1900) complete the top five countries with the highest weekly wage among all OECD member-states. On the other hand, workers in Mexico earn about USD 321 a week, the lowest among the 35 countries on the chart.
Even though such data on wage averages are based on PPP (Purchasing Power Parity) indexes, they still do not fully take into account deviations in local prices, which are influenced by complex factors – such as tariffs and fuel costs for imported goods – the effect of monopolies and cartels, the price of non-tradable goods – such as energy and housing costs –as well as state taxes.
While the wage differences seem huge, paying workers enough to cover their living costs also plays a role. This is because countries with higher weekly wages correlate with much higher living costs and vice versa. For example, Switzerland, Denmark, and Iceland are in the top 10 countries with the highest increased cost of living compared to Mexico, which is much lower.
Raising the average Greek salary is one of the main promises that Kyriakos Mitsotakis made in his successful re-election bid. In the new budget submitted to the Hellenic Parliament this week, the ND administration promised wage increases – in both the public and the private sector wages, as well as a drop in inflation to 2.6 per cent when today it is estimated at 3.9 per cent. Notably, the increases that public servants will receive will be the first in fourteen years.
Of course, Greece still has a long way to go to compete with the top-performing economies among OECD countries. Yet, its macroeconomic figures are encouraging, as its public debt and unemployment have dropped. According to the EU’s forecasts, Greek economic activity will grow by more than 2 per cent until 2025, while Mitsotakis’ claim that inflation will drop below 3 per cent is increasingly likely. However, it remains to be seen if the Greek government will maintain this momentum throughout 2024 in a political climate otherwise tormented by regional geopolitical crises.
