Greece to Announce New Minimum Wage Increase Before Easter

Deputy Prime Minister Confirms Upcoming Announcement

Greece's Deputy Prime Minister, Kostis Hatzidakis, confirmed on February 17 that the government plans to announce the next increase to the national minimum wage before Easter. Speaking on SKAI TV, Hatzidakis indicated that the announcement would take place in early April. Easter Sunday in 2026 is observed on April 5.

This forthcoming adjustment is part of the government's ongoing commitment to support incomes and follows a series of increases implemented in recent years. The Deputy Prime Minister highlighted the government's efforts to exhaust budget margins and pursue 'pro-growth policies, with support for healthy entrepreneurship, tax cuts, environmental improvement, and wage and pension increases to the limit of what is feasible'.

Current Minimum Wage and Historical Context

The current gross monthly minimum wage in Greece stands at €880, an amount that took effect on April 1, 2025. This represented a 6.4% increase from the previous rate of €830 per month, which was implemented in April 2024. This marks the fifth consecutive rise in the minimum wage since 2019, reflecting a consistent policy direction to enhance living standards for workers across the country.

The minimum wage in Greece is paid on a 14-month basis, a system that applies to all wage-earning staff. Projections suggest that the minimum monthly wage could reach approximately €920 by April 2026, with a broader government target of achieving €950 per month by 2027.

Factors Influencing Wage Decisions

The determination of Greece's minimum wage involves a comprehensive consultation process. Since February 2019, the government has been responsible for setting the minimum wage after engaging with national social partners and other public agencies. Key factors considered in this decision-making process include:

• Economic indicators
• Labour market data
• Consultations with social partners

A new law, passed in December 2024, aims to transpose the EU Minimum Wage Directive. While new criteria for minimum wage determination, such as the annual rate of change in the Consumer Price Index (CPI) for the lowest 20% of household income distribution and the annual rate of change in the purchasing power of the general wage index, will apply from 2028, the period from 2025 to 2027 is considered transitional, maintaining the current system.

Broader Economic Impact

Increases in the minimum wage in Greece have a cascading effect across various economic sectors. Beyond directly benefiting private sector employees, these adjustments also impact public sector employees and lead to corresponding increases in several social benefits. These include, but are not limited to, unemployment benefits, marriage allowances, maternity pay, and parental leave support.