Time is ticking down toward a new increase in Greece’s minimum wage, set to take effect on 1 April 2026 — the first step in a broader government plan to boost household incomes this year and through 2027.
A Decision Expected in March
By the end of March, Labour and Social Security Minister Nikē Kerameōs is expected to submit a proposal to the Cabinet for the next minimum wage adjustment. The decision will follow final consultations with social partners — trade unions and employer associations — whose input on the proposed increase has already been gathered.
Wider Ripple Effects
The new minimum wage will automatically lift several income-linked benefits, including unemployment support, maternity and parental leave allowances, seasonal hardship supplements for specific professions, and other social provisions targeting vulnerable groups.
Government Target: €950 by 2027
The government remains committed to raising the minimum wage to €950 by the end of its four-year term in 2027. With the current rate at €880, speculation remains about whether the upcoming adjustment could leapfrog expectations — potentially setting the new floor at €950 as early as April 2025. However, no final decision will be made before the March Cabinet meeting and completion of negotiations with social partners.
What Social Partners Are Proposing
Different stakeholders have put forward varying recommendations:
- The Bank of Greece suggests an increase of up to 4%, aligned with inflation and productivity trends — a move it says would strengthen workers’ purchasing power without harming economic competitiveness.
- The Institute of Economic and Industrial Research (IOBE) proposes a 2.5%–3.5% rise.
- The Centre for Planning and Economic Research (KEPE) recommends 3.5%–5%.
- INSETE proposes a flat 4% increase.
- The Hellenic Federation of Enterprises (SEV) suggests 3%–3.5%, coupled with lower employer contributions and energy subsidies.
- The General Confederation of Greek Workers (GSEE) calls for a jump to €1,052 — the highest demand among all parties.
- The General Confederation of Small and Medium Enterprises (GSEVEE) proposes 3.5%–4%.
- The Hellenic Federation of Commercial Enterprises (ESEE) recommends 3.6%.
Impact on Average Wages
This minimum wage update is also expected to lift average earnings across the economy. Minister Kerameōs confirmed earlier this week that the government’s target of reaching a €1,500 average monthly wage by the end of its term has already been met — starting this year.
New Collective Bargaining Law Fuels Further Expectations
Broad-based wage growth is further supported by the recently passed law on Collective Labour Agreements, approved by Parliament. Key features include:
- Reinstatement of ‘post-expiry continuation’ — meaning agreements remain in force after their official end date until a new deal is signed.
- Unilateral access for workers to arbitration if employers refuse to negotiate a new agreement.
- Reduced employer participation threshold for sector-wide extension of agreements — lowered from 50% to 40%.
- Mandatory application of collective agreements across entire sectors when signed by national-level social partners.