22.8% of employees in the private sector, some 575,684 employees, and 600,000 public sector employees will benefit from the 6.02% increase in minimum wage announced by the Prime Minister, while the total number of winners will reach 1.6 million as beneficiaries of benefits linked to the minimum wage, such as maternity, parental leave, unemployment and marriage benefits, will also see increases.

The new minimum wage is set at €880 from €830 and the minimum daily wage from €37.07 to €39.30 from April 1. For a married worker with three years of experience, the wage will reach 1258.4 euros gross, while the monthly unemployment benefit will rise to 540 euros from 509 euros today.

How much will employees get net out of pocket

The minimum wage of 880 euros is 743 euros net from 709 euros last year for the employee without children, workers with one child will receive 752 euros from 718 euros they currently receive and workers with two or more children will receive 762 euros from 719 euros they currently receive.

The monthly net increase that an employee with no children and no other income will see in their wallet from April 1 will be €34 (up from €50 gross).

The net increase for employees with 2 or more children and no other income will be 43€, after payment of social security contributions and income tax.

On an annual basis (14 salaries), the net benefit for employees is €473 (without children) and €606 (with 2 or more children).

In total, since December 2019, these employees have received an additional net benefit of €195 (without children) and €215 (with 2 or more children) each month, and €2,735 (without children) to €3,010 (with 2 or more children) annually.

Rate and reservations: Note that after the increase, the annual income tax will be €270 for the employee without children. Monthly insurance deductions for the employee will be 117.66 euros and employer’s contributions will be 191.75 euros

The monthly insurance deductions for the employee will be 117.66 euros and employer’s contributions will be 191.75 euros.

Five net wages from 2019

According to government circles, the total increase in the minimum wage from 2019, by 35.4%, is almost double the cumulative inflation of the same period, which stood at 18.1%. The gain for workers now equates to about 5 additional 2019 minimum wages per year.

The main objective is to strengthen the disposable income of employees and their purchasing power, support workers, improve living conditions and further economic development of the country.

As Prime Minister Kyriakos Mitsotakis stressed, the cumulative increase in the minimum wage from 2029 amounts to 2,735 euros per year, in other words almost five net wages of the past, while the annual net gain of the worker will now approach an additional salary compared to last year.

Also emphasizing the reduction of non-wage costs, he said that in 2027, insurance contributions will have been reduced by a total of 6 percentage points

With the new increase, our country ranks 11th in the EU among the 22 countries with a statutory minimum wage above that of Croatia, Malta, Estonia and Bulgaria but certainly at a lower level than countries such as Lithuania, Portugal and Cyprus.

The government’s target is for the minimum wage to reach €950 in 2027.

Horizontal increase in the public sector

For the first time, the increase is extended to the public sector. In particular in the public sector, a horizontal increase in salaries will be given across all salary scales. That is, the salary of a new entrant from 850 euros, which is currently 850 euros, will rise from April 1 to 880 euros. In fact, in combination with other interventions, the total benefit for each employee will reach an average of 190 euros per month.

Taking into account all the interventions that have been made for the salaries of civil servants from 2023, the average increase amounts to 2,283 euros per year, equivalent to 1.3 additional salaries per year

In addition, a recent provision finally settles the issue of the personal difference offset for about 40,000 civil servants. Through the provision :

– If the personal difference is less than the amount of 300 euros, it will not be offset against the increase in the basic salary.

– If it exceeds it, the amount of the personal difference to be offset shall be equal to the lesser of 50% of the caused increase in the basic salary and the amount of the personal difference exceeding EUR 300.

In this way, a solution is provided to the salary inequalities observed in the public sector, even between employees with the same qualifications, seniority and position.

It should be noted that the minimum wage is expected to be increased again in the public sector on New Year’s Day 2026. The aim is for the introductory step to reach 950 euros on New Year’s Day 2027.

How much are triennials and bonuses increased based on the new minimum wage

The monthly salary for a married employee with three years of service will reach 1258.4 euros. The monthly unemployment benefit will rise to 540 euros from the current 509 euros, while the Easter and Christmas bonuses and the holiday allowance will be increased accordingly.

In particular Easter gift (15 days’ pay for those paid on a salary and 13 days’ pay for those paid on a daily wage, i.e. from 556.05 to 589.41 euros and from 481.91 euros to 510.82 euros respectively). The Christmas bonus will be adjusted from EUR 830 to EUR 880. The holiday allowance will increase from 556.05 euros to 589.41 euros.

The three-year salaries with the new minimum wage will be as follows:

– A single three-year period: €880 gross for single people and €968 gross for married people (with a 10% marriage allowance of €88).

– One Three-year period: 968 euros gross for unmarried couples and 1064.8 euros gross for married couples.

– Two Triennial: €1056 gross for unmarried couples and €1,161.6 gross for married couples.

– Three Triennia: EUR 1,144 gross for unmarried persons and EUR 1,258.4 gross for married persons.

At the same time 19 Allowances linked to the Minimum Wage will increase by 6% respectively.

– Thus the allowances are structured as follows:

– Unemployment Benefit: Increased from EUR 509 to EUR 540

– Special Maternity Benefit: Increased in line with the new minimum wage, i.e. to 880 euros

– Parental leave allowance: It is also increased in line with the change in the minimum wage

– Work allowance (50% of the unemployment benefit until the end). It will rise to €270

– Expiring unemployment benefit: 13 daily allowances.

– Termination of unemployment: 15 daily allowances.

– Released from prison benefit: 15 daily allowances.

– Labour Accreditation: 20 daily allowances.

– Employer insolvency: up to 3 days’ pay.

– Builder’s wage: 70% of 37 full days’ wages.

– Smiths’ wages: 70% of 50 full days’ wages.

– Artists, theaters, tourism: 70% of 25 times daily wages.

– Other Seasonal (forestry workers, resin collectors, tobacco workers, potters): 70% of 35 full days’ wages.

– Non-employees: Monthly unemployment benefit.

– Pupil’s allowance for students of VET schools: 75% of the daily wage.

– Internship allowance (IEK DYPA): 80% of the minimum wage.

– Gaining Work Experience: Minimum wage.

– Public Benefit Programmes: Minimum wage.

– Employment programmes: subsidy of 50%-90% of the minimum wage.

– Student workers: 30 minimum wage for undergraduates and 10 minimum wage for postgraduates

New way of calculating the minimum wage from 2028

Until 2027, the minimum wage will be determined by the current system, i.e. by the consultation process of the social partners through proposals and a final decision on the rate of increase by the government.

From 1 January 2028, the process changes and the minimum will be set based on the mathematical formula, which will take into account the rate of inflation, especially for households in the lowest 20% of the income scale, but also the increase in the productivity of the economy. The minimum wage will act as a safety net for all workers in the country, since the new law stipulates that there can be no reduction.