The disparity between public and private sector salaries in Greece ranges between 30 and 58 percent in favor of civil servants, a recent European Commission report has revealed.
Although the state was mainly to blame for the financial crisis, it is the private sector that has borne the brunt of the fiscal adjustment, as besides adding 1.5 million people to the jobless queues, it also has considerably lower salaries than the public sector.
For instance, the basic monthly salary of a university graduate aged over 25 without work experience is 586 euros in the private sector and 510 euros for under-25s. In the public sector, the same employee collects 1000-1,100 euros per month. An unmarried employee with nine years of experience but no university degree gets an average of 761.90 euros in the private sector against 1,000 euros in the civil service.
The private sector is also hurt by the high non-salary costs that burden Greek business owners more than other Europeans, thereby leading to an increase in unemployment, undeclared labor and social security contribution evasion, as well as reduced investment.