The strengthening of collective bargaining agreements and the expansion of worker coverage through them is emerging as one of the next key objectives of government policy for the labor market. The goal is no longer just raising the minimum wage, but transferring wage momentum to the immediately higher salary brackets, so as to boost middle-income earners.
The government’s next “battle” goes beyond the minimum wage
The discussion has opened against the backdrop of a growing recognition that minimum wages have risen faster than median salaries. This development has narrowed the gap between the minimum wage and the next salary brackets above it, creating what is known as wage “compression.” Labor Minister Niki Kerameus signaled the government’s next moves in an interview with Parapolitika, where she outlined the prospect of significant new collective bargaining agreements. As she noted, “there are very important collective agreements that are just around the corner,” while also referencing the social partners’ agreement. According to the minister, approximately 400,000 workers in the hospitality and food service sector are now covered by a collective agreement, with similar deals in place in sectors such as bakeries and pastry shops.
What OECD data reveals about minimum wages
OECD data reflects a broader international trend. In most member countries, minimum wages have risen faster than median wages since 2021. In 20 out of the 30 countries that have a national minimum wage, the ratio of the minimum to the median wage increased during the period 2021–2025. In other words, the base of the wage pyramid has grown faster than its middle. Greece is no exception. The labor market initially faced a significant loss of purchasing power, as the energy crisis and high inflation dramatically increased the cost of living. Subsequently, real wages recovered, and by the first quarter of 2026 had surpassed their 2021 levels.
However, the recovery was not uniform. It was largely driven by successive increases in the minimum wage, without the rest of the wage scale following at the same pace. Data from ERGANI, the Greek labor market monitoring system, captures this shift. The average wage for full-time and part-time employment stood at €1,362.66, up from €1,342 in 2024 — an increase of approximately €20. At the same time, significant movements within the wage pyramid are being observed. Workers earning between €800 and €1,000 decreased by 46.2% within a single year, while those in the €1,001 to €1,500 bracket increased by 54.2%.
900,000 workers still earning below €1,000
This picture is largely connected to the increase in the minimum wage and the shift of workers into higher salary categories. Nevertheless, concentration remains intense at the lower and middle levels. Overall, 61% of salaried employees earn between €801 and €1,500 — a share that remains nearly unchanged. Around 900,000 workers continue to earn less than €1,000 per month. Meanwhile, 597,695 workers, or 24.29% of the total, fall in the €1,001 to €1,200 bracket. The €1,201 to €1,500 bracket includes 394,159 workers, accounting for 16.02%, while 268,058 workers, or 10.89%, earn between €1,501 and €2,000. Between €2,001 and €2,500, there are 126,963 workers, representing 5.16% of the total. Concentration becomes even thinner at higher salary levels: 63,464 workers fall in the €2,501 to €3,000 bracket, while 112,075 workers, or 4.55% of the total, earn above €3,000.
In the broader effort to boost incomes, the issue of the gender pay gap also remains unresolved. Data from the Hellenic Statistical Authority (ELSTAT) for 2024 shows that women earn on average 13.4% less per hour worked than men. This figure remains at the same level as in 2022 and is slightly lower than the 13.6% recorded in 2023.
Originally published in Apogevmatini
