From April 1st, the minimum wage was announced to increase for the sixth consecutive time since 2019 to €920, dragging along benefits and seniority allowances. But how much is the actual salary that workers will take home each month?
In detail, the net pay from the new minimum wage that will climb to €920 gross is structured as follows per month:
New minimum wage for employees under 25 years old:
Gross: €920
Social security contributions: €123
Employee tax: €0
Net monthly salary: €797 per month
Employer cost: €1,307
New minimum wage for employees between 25-30 years old:
Gross: €920
Social security contributions: €123
Employee tax: €16
Net monthly salary: €781 per month
Employer cost: €1,307
New minimum wage for employees over 30 years old:
Gross: €920
Social security contributions: €123
Employee tax: €25
Net monthly salary: €772 per month
Employer cost: €1,307
It should be noted that gross salary is the compensation amount before deductions. After subtracting social security contributions and employee tax, the net salary is derived. The total employer cost results from the sum of gross earnings and employer contributions, taking into account annual obligations as well. As Kyriakos Mitsotakis announced during today’s cabinet meeting, this represents a monthly increase of €40 from last year, meaning almost half a salary annually. The cumulative increase is around 41.5% since 2019 and over €3,780 per year. The target for 2027 is for the average wage to reach €1,500 and the basic wage €950. As mentioned, in Greece the increases and tax reliefs will be permanent and recurring.
