Every Greek resident will lose a month’s salary in 2022 due to rising prices

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Due to inflation and inflationary processes, working residents of Greece lost 1 month’s salary in 2022. This conclusion follows from the data of ΟΟΣΑ, which indicate that inflation and devaluation of the euro reduced the real annual income of each resident of the country on average by 1,046 euros in 2022.

How wallets lose weight

According to ΟΟΣΑ (Οργανισμός Οικονομικής Συνεργασίας και Ανάπτυξης – Organization for Economic Cooperation and Development tia), the average annual salary in constant prices (after taking into account inflation) fell from 17,220 euros in 2021 to 16,174 euros in 2022, that is, from 1,230 euros in month up to 1155 euros on a 14-month basis.

Losses due to inflation, which reached 9.6%, amount to about 75 euros per month (calculated for 14 months). These losses are due solely to inflation and rising prices, since at current prices wages increased from 16,086 to 16,174 euros.

If we consider that the average salary for 14 months in constant prices in 2022 was – according to the OECD methodology – 1155 euros, it turns out that in 2022 the average employee lost one salary due to inflation. In other words, the 13th salary in 2022 was cut off by a rise in price.

Real income declines by 30% from 2010 to 2022

The IOBE study on the new minimum wage rise, submitted to the Department of Labour, noted that while minimum wage changes in recent years have covered increases in the general price level, the same cannot be said for average wages.

“So, real average wages, after a cumulative increase of 25% in the period 2000-2009, in the period 2010-2022 systematically decreased by a cumulative 30%, so that in 2022 it will remain 18% lower in real terms than in 2000. As a result, in real terms, the minimum wage in Greece in recent years has become closer and closer to the average wage.”notes the SEV research institute.

From the dynamics of real wages in the period 2000-2022, a decrease in real wages in 2022 compared to 2021 is obvious.

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