Pay Gap Widens as Small Greek Firms Struggle to Raise Wages

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As Greece navigates its path toward economic recovery, the private sector embodies both triumph and tension, with salary growth revealing uneven progress across various sectors. Recent data signals a pressing concern: while larger enterprises have made marked strides toward wage enhancement, smaller firms lag notably behind in this upward trend. The disparity is evident as large companies reported wages averaging €1,457.41 in August, contrasting sharply with the €1,032.14 recorded for smaller businesses. This discrepancy highlights a fundamental challenge—despite a general upward trajectory, the private sector’s recovery exhibits significant imbalances, with smaller enterprises grappling to keep pace with their larger counterparts. Such disparities bring into question the attainment of Greece’s targeted average gross salary of 1,500 euros by 2027, as the pathway remains obstructed by varied progress within different business sectors.

Economic Challenges and Pay Disparity

In Greece, the disparity between large and small businesses transcends mere figures, encapsulating deep-rooted structural issues in the labor market dating back to the pre-2010 crisis period. Large firms saw a 3% wage hike from June to August but still pay about €400 more monthly than smaller entities, which experienced a 4% climb from a lower baseline. This wage gap highlights the challenge in achieving economic parity and regional prosperity despite some improvements, such as salary hikes in joint ventures (7.17%) and construction (5.43%) since last year. However, actual earnings have yet to return to pre-crisis levels, and real GDP per capita remains below past highs. Among Greece’s 2.86 million private sector workers, nearly 22% are part-time, earning about €582 gross monthly, underscoring an economic ecosystem in flux. These findings stress the importance of revisiting labor market policies to ensure inclusive growth and equitable prosperity across enterprises, regardless of their size.

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