Greece Begins Process to Set Minimum Wage for 2025

10:17 20/1/2025 - Πηγή: iEfimerida

Greece has officially launched the process to determine the minimum wage for 2025, as Labor Minister Mr. Niki Kerameus sent invitations to key stakeholders to participate in the consultations.

The process will involve two main committees.

The Consultation Committee will consist of five representatives from workers' organizations, five from employers' associations, and the president of the Mediation and Arbitration Organization (OMED).

The aim

is for these groups to reach a unified proposal, moving away from the previous system where separate recommendations were submitted by each party. Additionally, a five-member Scientific Committee will be formed, consisting of independent experts in labor and economic issues.

These experts will be nominated by the Ministry of Labor, the Ministry of National Economy and Finance, and the Hellenic Statistical Authority (ELSTAT). The two committees will present their findings, which will help guide the wage increase.

The final proposal will then be submitted to the Cabinet by Minister Mr. Kerameus and the Ministry of National Economy and Finance. The new minimum wage is expected to take effect in April 2025.

The government has committed to increasing the minimum wage to €950 by 2027, which would represent a 46.2% rise since 2019.

Currently, the minimum wage stands at €830, up from €650 in 2019, reflecting a 28% increase.

This year, entry-level salaries in the public sector will be aligned with the private sector minimum wage, with increases applied across all public sector pay grades. In addition to wage increases, the government plans to reduce social security contributions, which have already decreased by 5.4 percentage points since 2019. By 2027, these contributions are expected to drop by another six percentage points.

A new mechanism for determining the minimum wage will be introduced in mid-2027, linking wage levels to economic growth.

The annual adjustments to the minimum wage will follow a model based on the French system. This model incorporates inflation data specific to households in the lowest 20% of income earners, as well as half of the annual change in the purchasing power of the General Wage Index.

The goal is to address inflationary pressures on lower-income households and to reflect productivity improvements in the economy.

According to the Ministry of Labor, the new system will be more transparent and equitable, relying on objective economic data from ELSTAT.

A key feature of this system is that it will protect public sector employees by ensuring their salaries are tied to the private sector minimum wage, providing them with the same wage increases.

By combining inflation adjustments with economic productivity, the government aims to enhance wages while also strengthening consumer purchasing power.

Similar systems have been implemented in other European countries, including Belgium, Luxembourg, and the Netherlands, which provide models for Greece's new approach.

These changes are part of a broader government strategy to increase worker incomes and stimulate investment, ultimately promoting economic growth and reducing inequality.

Διαβάστε περισσότερα στο iefimerida.gr