The process for the next adjustment of the minimum wage is approaching, with the government preparing for consultation with social partners. The final decision is expected to be announced by mid-March 2026, so that the new salaries take effect from the first day of April. The scenarios being considered range from conservative to more ambitious approaches, with workers awaiting developments with great interest.
Read: The silent increase that minimum wage brings: Which benefits are affected
Consultation and decision-making process
The Ministry of Labor is preparing to invite social partners to formal consultation for shaping the new wage policy. Employers and employees will present their positions, followed by the compilation of the consultation report. The Labor Minister will recommend the final proposal to the cabinet, taking into account economic data and labor market needs.
Unified minimum wage for all sectors
The new regulation will be applied uniformly in both private and public sectors. For public sector employees, the increase will affect all salary scales horizontally, regardless of educational level. This means that employees with Compulsory Education, Secondary Education, Technological Education and University Education will see their basic salaries increase proportionally.
The three scenarios for salary increases
According to circulating information, the government is examining different options for minimum wage increases. The government target remains reaching 950 euros by spring 2027, which means a total increase of approximately 70 euros from the current 880 euros is required. The first scenario provides for a conservative approach with a 35-euro increase in April 2026, raising the minimum wage to 915 euros. Subsequently, in April 2027 there will be a second increase of the same amount, reaching exactly the target of 950 euros.
The second and more ambitious scenario examines an increase between 40 and 50 euros from the coming April. This option would raise salaries to 920 to 930 euros immediately, while with the second adjustment in 2027, the minimum wage could exceed 950 euros and reach even 970 or 980 euros.
Tax reliefs that strengthen income
The discussion about salaries is directly connected to tax changes that came into effect from January 1st, 2026. The reduction in monthly tax withholding for employees and pensioners is expected to significantly boost workers’ net income. Particularly benefited will be approximately 270,000 young workers up to 30 years old who receive the minimum wage. Specifically, for incomes up to 20,000 euros annually, workers up to 25 years old are completely exempted from income tax. For the age group 26 to 30 years, tax withholdings are drastically reduced, leaving more money in young professionals’ pockets.
The combined effect of minimum wage increases with tax reliefs is expected to create noticeable improvement in workers’ disposable income, strengthening their purchasing power and contributing to economic development.
