Minimum Wage Set to Reach €880 – New Increase Approved by Cabinet

On March 26, 2025, during a meeting of the cabinet, a new increase in the minimum wage will be announced, set to take effect from April 1. The increase, alongside a series of tax cuts to be gradually implemented through September, targets the middle class—a group the ruling party seeks to reconnect with amid challenging circumstances and intense polling pressures for New Democracy. The hike is expected to reach nearly €50, bringing the minimum wage to €880 (€740 net). This impacts approximately 600,000 workers employed full-time or part-time. Prime Minister Kyriakos Mitsotakis will reiterate the commitment to reaching €950 by 2027, noting that the minimum wage has increased by 27.7% since 2019. Additionally, plans suggest the average wage could reach €1,500 by 2027. The adjustment also affects public sector employees for the first time, aligning their starting salaries with those in the private sector. Furthermore, unemployment, marriage, and maternity benefits will see increases. Officials highlight this as the first time minimum wage protection extends to the public sector, with automatic adjustments based on inflation and productivity planned from 2028. The prime minister is also expected to discuss positive labor market data, including an unemployment rate of 8.7%, the lowest since 2008, surpassing countries like Sweden, Finland, and Spain. Since 2019, 500,000 new jobs have been created, with most being full-time positions, and the average salary now stands at €1,342. Social security contributions have decreased by 5.4 units, and the Digital Work Card protects 1.5 million workers.