Minimum wage

The Greek economy remains resilient and is expected to grow at a rate of 2% in 2024 and 2.5% in 2025 as rising employment and real wages and strong tourism boost consumption, according to the OECD's six-monthly report.

Despite the slowdown in new job growth, the employment rate and labour force shortages remain at historically high levels, it was pointed out.

The objective to return the average monthly salary in Greece to pre-crisis levels - i.e. 1,500 euros - is an undertaking with an increased degree of difficulty, as the country's structural problems, which are still worsening, and the international economic situation are not helping.

Minister of Labor and Social Affairs Domna Michailidou emphasized in an interview on state radio ERA that the increases in the minimum wage are aligned with those in the average salary.

Michailidou underscored that this alignment reflects the government's economic policy.

The decision to raise the minimum wage to 830 euros a month confirms the government's inclination for progressive measures on social issues.

Prime Minister Kyriakos Mitsotakis marked the increase of the minimum wage, which came into effect on Monday, with a visit to the Sun (Ilios) spice factory in Rentis, Piraeus.

The new minimum salary to be introduced from next Monday, April 1, will amount to 830 euros gross, increased by 6.4%, the government announced on Friday. It will concern at least 560,000 workers already employed in the private sector.

Greece will raise its monthly minimum gross wage by 6.4% to 830 euros, the conservative government said on Friday, the fourth such increase in five years aimed at easing the burden on households squeezed by a higher cost of living.

The increase in the minimum wage is a positive development. The value of labor was one of those areas that took the brunt of the internal devaluation during Greece's economic crisis. 

But cultivating an economic environment that will create high-paying jobs requires much more complex and painstaking efforts.

The increase in the minimum wage also creates pressures for salary increases for other employees in Greece, especially in small businesses and some industries, such as services.

The government has decided to raise the minimum wage to around 830 euros gross and €705 net as of April 1. Labor Minister Domna Michailidou submitted her proposal to the cabinet secretariat on Friday, with the final decision to be announced next Wednesday by Prime Minister Kyriakos Mitsotakis.