Minimum Wage: Expected to be Fixed at €930-€940 – Government Targets €1,000 by 2027

The government is developing plans to increase the minimum wage, which, according to information, is expected to be finalized between €930 and €940 starting April 1. The official decision on the final increase amount is anticipated to be announced by Prime Minister Kyriakos Mitsotakis at the Cabinet meeting next Tuesday.

Increase Scenarios and the €1,000 Target

The prevailing scenarios under consideration by the Ministry of Labor and Social Security include increases of €40 or €50. Specifically, a €50 increase would set the minimum gross wage at €930, up from the current €880. However, a 'surprise' increase of up to €60, reaching €940, is not ruled out, aiming to further support low-income earners against price hikes, especially in fuel.

In the long term, decisions for this year's increase are being made with an eye on the 2027 minimum wage. The initial government target of €950 is being revised upwards, with the benchmark now set closer to €1,000 for spring 2027. If elections are held on schedule, then shortly before the 2027 ballot, the minimum wage could reach €990-€1,000.

"Prudent Increase" and Multiple Benefits

The Minister of Labor and Social Security, Niki Kerameus, who will submit the proposal for the new minimum wage, has referred to a "prudent increase". This increase will consider the need to strengthen low-wage workers, the resilience of businesses, and the fiscal margins of the budget. It is important to note that the minimum wage increase will also apply to the salaries of public sector employees starting April 1.

Furthermore, the minimum wage increase will be combined with a reduction in the monthly tax withholding applicable from January 1, 2026, for salaried employees. This implies a double benefit for approximately 270,000 young workers up to 30 years old, who are typically paid the minimum wage. Specifically, for income up to €20,000, employees up to 25 years old will have zero tax, while those aged 26 to 30 will see a reduction in deductions to 9% from 22%.

For example, a young person up to 25 years old currently earning the gross minimum wage of €880 receives a net amount of €762 after social security contributions and tax. With a €50 increase, raising the minimum wage to €930, their net earnings will become €806, resulting in a gain of €44.