Greece's Minimum Wage To Rise Again In 2026: What Employers And Employees Should Expect

Greece is preparing for another increase in its minimum wage, expected to take effect in April 2026. According to current projections, the minimum monthly wage is likely to rise by approximately €40, reaching €920, up from today's €880.

While the increase itself may appear simple, its implications for both the public and private sectors are more complex and will unfold gradually over the coming year.

How the New Minimum Wage Will Be Set

The formal process for determining the new minimum wage is expected to begin in January 2026 and conclude by March, with the final figure announced ahead of its application on 1 April 2026.

As in previous years, the decision will take into consideration economic indicators, labour market data, and consultations with social partners, before being set by the government.

Impact on the Public Sector

The increase will not be limited to the private sector since in Greece, the minimum wage is directly linked to the entry-level salary in the public sector.

If the €40 increase is confirmed:

• The starting salary in the public sector will rise to €920
• All basic salary scales above the entry level will be adjusted upward by the same amount

This alignment ensures uniformity but also increases the overall payroll cost for the public sector, with implications for future budget planning.

What It Means for the Private Sector

In the private sector, the impact will extend beyond employees earning the minimum wage. Employees with recognised years of service will see proportionate increases.

Indicatively:

• One three-year period (one "triennium"): salary may rise to €1,016
• Two trienniums: salary may reach €1,117
• Three trienniums: salary may increase to €1,230

For employers, this means that a minimum wage increase can cascade across payroll structures, particularly in sectors with long-serving staff and uniform wage scales.

Average Wages and Collective Bargaining

While the minimum wage increase is certain to affect statutory thresholds, average wages are not to rise automatically.

Expected legislative changes to the framework governing collective bargaining agreements, anticipated to become law in early 2026, aim to make sectoral agreements more accessible and effective. However, for employees to see tangible wage increases beyond the minimum:

• New sectoral collective agreements must be negotiated and signed
• Wage adjustments will depend on industry-level negotiations, not government decree

At the time being, only around 20% of employees are covered by collective agreements. Although the European Union has set a target of 80% coverage, this level is expected to be reached by 2030.

A Long Way to Reach Pre-Crisis Wage Levels

Restoring wages to pre-financial crisis levels is a gradual and demanding process. Legislative reform alone cannot achieve this outcome. It requires:

• Active participation from employers and employee representatives
• Willingness to negotiate at sectoral level
• Sustainable business conditions that support higher labour costs

The minimum wage continues to function as a floor, rather than a benchmark. Where collective agreements are absent, wage growth remains limited, reinforcing disparities between sectors.

How Eurofast Can Assist You

Eurofast supports employers in Greece by offering:

• Payroll impact assessments to evaluate how minimum wage increases affect total labour costs
• Payroll restructuring support, ensuring correct application of seniority allowances and salary scales
• Compliance advisory services, helping businesses align with evolving labour and collective bargaining legislation
• Strategic workforce planning, supporting employers in balancing competitiveness, compliance, and cost control

With deep expertise in Greek payroll, labour law, and cross-border employment structures, Eurofast helps employers anticipate change rather than react to it.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.