Minimum wage in Greece: Upcoming salary increases for new public sector entrants and future determination process

From January 1, 2026, entry-level public sector salaries in Greece will increase in line with the minimum wage set for the private sector, according to a new labor law draft. However, for 2025, a unique approach will apply, as outlined in the draft legislation of the Ministry of Labor, which is open for public consultation until November 21.

Specifically, in 2025, an adjusted amount will be given to public sector entrants based on the wage gap as of December 31, 2024. Currently, the base salary in the public sector is €850, which is €20 higher than the private sector minimum wage. If the private sector minimum wage increases by €40 in 2025, raising it from €830 to €870, new public sector entrants would receive an additional €20 to align wages, with full equalization of increases set to begin in 2026.

The draft law also specifies that the process for determining the minimum wage for 2025, 2026, and 2027 will follow the current timeline. However, alongside the scientific committee, a new consultation committee with expanded roles will be established, including input from social partners and economic institutions such as the Hellenic Statistical Authority (ELSTAT) and the Bank of Greece. The committee’s objective is to set a wage base, following this model, although its full application is expected three years later.

It’s noted that the scientific committee’s proposal for a transitional preparation phase from June 1, 2025, to December 31, 2027, was not included in the draft law for practical reasons.

According to the timeline, minimum wage determinations for 2025, 2026, and 2027 will start on January 31 and conclude by the end of March, allowing the new wage to take effect from April 1. Labor Minister Niki Kerameus confirmed that the target of reaching a €950 minimum wage by 2027 is entirely feasible.

A different timeline will apply for a new minimum wage determination process, starting January 1, 2028, which will utilize a mathematical formula that factors in inflation—particularly for households in the lowest 20% income bracket—as well as productivity growth in the economy.

The new system schedules the start of consultations on August 31 each year, with the process set to conclude by year’s end to implement the updated wage by January 1 of the following year.

Within a year of the law’s enactment, the Ministry of Labor will issue an action plan to increase the proportion of workers covered by Collective Bargaining Agreements. This aligns with an EU directive soon to be incorporated into national law, which aims for 80% coverage across the EU. In Greece, collective bargaining coverage currently stands between 25% and 30%.

The development of this Action Plan will include extensive discussions with Social Partners on necessary institutional measures to enhance the framework, as the government has clarified its commitment to strengthening Collective Bargaining Agreements.

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