Greece Set to Approve €50 Minimum Wage Hike in Wednesday’s Cabinet Meeting

On Wednesday, during the cabinet meeting under the leadership of Prime Minister Kyriakos Mitsotakis, Greece is set to finalize a new increase in the minimum wage, effective from April 1st. After a period dominated by political and social agendas due to the Tempi tragedy, which caused significant disruptions in the political landscape, the Mitsotakis government shifts its focus back to everyday issues, with a precise aim to remain the central ‘thorn’. In this context, an announcement regarding the new minimum wage hike is anticipated. The fifth increase in the minimum wage is expected to lock in at around €50. This aims to boost disposable income and purchasing power for employees, with an estimated rise of close to 6%, nearing €50. Prime Minister Mitsotakis is expected to highlight that this marks the fifth increase since 2019, bringing the minimum wage to €830 today from €650—an overall increase of 27.7%. He will reiterate the commitment to reach €950 by 2027. This increase impacts over 575,000 private sector workers, public employees (for the first time), recipients of benefits (marriage, maternity, unemployment, etc.), and indirectly affects the average wage. Additionally, unemployment stands at 8.7%, the lowest since 2008, with 500,000 new jobs created since 2019, increasing full-time employment and average wages to €1,342. Social security contributions have decreased by 5.4 units, while the Digital Work Card protects 1.5 million workers. Government sources also refute claims about excessive tax burdens, clarifying that those earning the minimum wage are largely exempt or pay minimal taxes. The presentation at the cabinet meeting will be led by Labor Minister Niki Kerameou. Meanwhile, the prime minister will chair a meeting at the Ministry of Internal Affairs with Livaniou and Papastergiou, focusing on accelerating hiring through ASEP and further digitizing services.