Greece: Frozen salary increments to boost pay for new workers from 2027

Starting in 2027, thousands of private sector employees in Greece will see their salaries rise as previously frozen three-year increments are reinstated. This change, effective from January 1, 2024, will benefit new workers who complete three years of service.

For these employees, the reinstatement of seniority means a 10% increase on the minimum wage. Based on the current minimum wage of 920 euros, this would amount to 1,012 euros before any future adjustments. The final figure will depend on the minimum wage set for April 2027.

The government aims for a minimum wage of 950 euros by April 2027, up from the current 920 euros. However, this could be higher depending on economic conditions, growth, and inflation, particularly in the lead-up to elections. If the minimum wage reaches 950 euros, the first three-year increment would bring the base salary to 1,045 euros. A higher minimum wage, such as 960 euros, would result in a salary of 1,056 euros for those with one increment.

Employees with recognized seniority prior to February 14, 2012, will continue to accrue time towards further salary advancements. The law allows for a 10% increase for each three-year period, up to a maximum of three increments, totaling 30%.

From 2028, a new method for calculating the minimum wage will be implemented, more closely linking annual adjustments to objective economic indicators like wage changes and economic performance. This aims for a more automated and predictable system, creating stability for both employees and businesses. The April 2027 increase will be the last determined by the government, as the mechanism shifts significantly in 2028.