A minimum wage increase is imminent, expected to be adjusted upward from April 1st, though the exact amount of the increase remains unknown at this time. More specifically, Niki Kerameos is expected to propose the new minimum wage increase to the cabinet during March, after completing dialogue with social partners based on their proposals for the increase amounts.
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The new minimum wage increase will drive up a series of benefits connected to it, including unemployment benefits, maternity allowances, parental leave benefits, seasonal assistance for specific professional categories, and other social benefits for vulnerable groups. The government’s commitment is for the minimum wage to reach €950 by the end of the four-year term in 2027.
Minimum wage: What social partners propose
The increases for the minimum wage proposed by social partners are as follows:
- The Bank of Greece proposes an increase of up to 4% taking into account inflation and productivity growth. According to the Bank of Greece, this increase is compatible with strengthening workers’ purchasing power without harming economic competitiveness.
- IOBE proposes an increase ranging from 2.5% to 3.5%
- KEPE’s proposal provides for an increase from 3.5% to 5%
- INSETE proposes a 4% increase
- SEV proposes an increase ranging from 3% to 3.5% combined with reduced contributions and energy subsidies
- GSEVEE proposes increases from 3.5% to 4%
- ESEE recommends a 3.6% increase
- GSEE demands the minimum wage be increased to €1,052
The new minimum wage increase will have a positive impact on average wages, for which the government’s target of €1,500 by the end of the term has already been achieved this year, as confirmed by N. Kerameos’ statements this week. Meanwhile, strong expectations for further wage increases this year across the entire economy are created by the new Collective Labor Agreements law passed in Parliament.
The law provides for:
- Restoration of post-effectiveness for contract validity after their expiration until a new agreement is signed.
- The possibility of unilateral recourse by workers to arbitration for contract signing.
- Reduction to 40% from 50% of employer participation percentage for extending contracts across entire sectors.
- Mandatory application of collective agreements across entire sectors when co-signed by national social partners.
