[Greece] Further minimum wage increase to combat rising costs

On March 26, the Greek government announced that it intends to increase the country’s gross monthly minimum wage by 4.5 per cent from April, in the hope of improving living standards impacted by both the financial crisis and the more recent rise in energy costs, Reuters reports.

The wage hike will be Greece’s sixth rise in four years

The nation is reportedly recovering from a 2009-2018 debt crisis, which wiped out nearly a quarter of its output, and dramatic cuts to pensions and wages as part of ⁠austerity measures in exchange for €290 billion ($335 billion) in bailout loans.

Prime Minister Kyriakos Mitsotakis' government has cut taxes and social security contributions and increased the minimum wage for full-time employees five times since 2022 in pursuit of a minimum monthly salary of €950 by 2027.

However, Greece’s purchasing power is still below the European average, and now its citizens are dealing with surging energy prices due to the ongoing US-Israeli war with Iran, which is fueling inflation.

"To further support the people, we will jointly decide today a new rise in the minimum wage from April 1," Mr Mitsotakis told a cabinet ⁠meeting on March 26. He reportedly stated that his labour minister will propose that the gross monthly minimum wage should be increased to €920 from €⁠880 on April 1.

The government consults employers and employees before setting the minimum wage. It requires cabinet approval to take effect.

Source: Reuters

(Quote via original reporting)

On March 26, the Greek government announced that it intends to increase the country’s gross monthly minimum wage by 4.5 per cent from April, in the hope of improving living standards impacted by both the financial crisis and the more recent rise in energy costs, Reuters reports.

The wage hike will be Greece’s sixth rise in four years

The nation is reportedly recovering from a 2009-2018 debt crisis, which wiped out nearly a quarter of its output, and dramatic cuts to pensions and wages as part of ⁠austerity measures in exchange for €290 billion ($335 billion) in bailout loans.

Prime Minister Kyriakos Mitsotakis' government has cut taxes and social security contributions and increased the minimum wage for full-time employees five times since 2022 in pursuit of a minimum monthly salary of €950 by 2027.

However, Greece’s purchasing power is still below the European average, and now its citizens are dealing with surging energy prices due to the ongoing US-Israeli war with Iran, which is fueling inflation.

"To further support the people, we will jointly decide today a new rise in the minimum wage from April 1," Mr Mitsotakis told a cabinet ⁠meeting on March 26. He reportedly stated that his labour minister will propose that the gross monthly minimum wage should be increased to €920 from €⁠880 on April 1.

The government consults employers and employees before setting the minimum wage. It requires cabinet approval to take effect.

Source: Reuters

(Quote via original reporting)