Who benefits from the minimum wage increase? What changes in 2027

Prime Minister Kyriakos Mitsotakis has announced that Greece's minimum wage will surpass 950 euros in 2027, a move expected to directly increase the earnings of over 1.3 million workers in both the private and public sectors. The final wage recommendation is slated for March 2027, with the new amounts appearing in payrolls starting in April.

This adjustment to the minimum wage will have a ripple effect, influencing a range of benefits and compensation structures within the labor market. Approximately 550,000 private sector employees earning the minimum wage will see a direct increase. Public sector employees will benefit from a horizontal adjustment of their salaries, and workers with accrued seniority (trieties) will also see their pay rise. Additionally, recipients of unemployment and maternity benefits will experience an increase.

Currently, the gross minimum wage stands at 920 euros, translating to approximately 772 euros net. If the minimum wage reaches 970 euros gross, salaries with one triet will rise to 1,062 euros from 1,012 euros, with two trieties reaching 1,154 euros from 1,104 euros, and three trieties amounting to 1,246 euros from 1,196 euros. For younger workers under 25, the net increases are expected to be even more significant.

Business organizations are calling for supportive measures to manage the increased labor costs. The President of the Athens Chamber of Commerce and Industry, Yiannis Hatzitheodosiou, stressed that higher incomes stimulate consumption but also requested a reduction in advance tax payments and the abolition of imputed income rules. Vassilis Korkidis, President of the Piraeus Chamber of Commerce and Industry, supports the 950-euro minimum wage target and proposes decoupling base earnings from imputed income.

The government is reportedly considering interventions to reduce business operating costs, including a potential decrease in employer contributions by at least 0.5%. Favorable financing programs are also being designed to boost market liquidity. Notably, 2027 will be the last year the government directly sets the minimum wage. Starting in 2028, an automatic calculation mechanism will be implemented, linking wage increases directly to inflation and the Greek economy's productivity.

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