At €1120.5, the cost of doing business for each low-paid worker is now €1120.5 after the increase in the minimum wage to €920 from April 1, while for employee, the net wage amounts to 771.7 euros after deducting social security contributions (123 euros) and the payroll tax (25.3 euros)

The increase of 4.55%, i.e. by 40 euros per month, is within the range proposed by the social partners but is not considered generous in relation to inflation and the precision that affects fuel and product prices . According to Labour Minister Niki Kerameos, the increase from 2019 amounts to 41.54%, which means that we occupy the 12th place among the 27 EU countries in terms of the minimum wage.

With one three-year period the salary amounts to 1012 euros, with two years to 1104 and with three years to 1196 euros, while the salary is increased by 10% with the marriage allowance.

At the same time, due to the new tax scale in force from 1/1/2026, the net amounts vary significantly by age. Young people up to 25 years old are the big winners, as with the zero tax for incomes up to €20,000, their net salary will reach €792.40. For wage earners over 30 without children, the net salary is set at €772, providing a substantial boost to their purchasing power.

In addition, the basic wage will also affect the average wage, which has risen to 1516 euros for full-time employment.

The new minimum wage will not only apply to some 700,000 private sector employees but also to 770,000 public sector employees.

According to the law, the introductory base salary in the public sector (category Y.E.) is no longer allowed to be less than the minimum wage in the private sector. This means in practice that the expected increase of 50 euros will be automatically and horizontally transferred to all public sector pay grades. The salaries will vary according to the educational level (PE, TE, DE, TE), seniority, children and position of responsibility, with an indicative net salary for a 20-year DE employee of about 950.

For example a secondary education employee with 30 years of service receiving 1310 euros from April will be paid 1,360 while a technology employee with the same years of service receiving 1,907 euros per month will receive 1,957.

At the same time in the private sector, in addition to the minimum wage, the focus will be on collective labour agreements. The government’s aim is to cover as much of the workforce as possible with contracts so that the average wage rises to €1500 in 2027. The feeling in the labour market, according to economic agents, is that “something is moving” as the sectoral contracts signed in the last year generally provide for annual wage increases of 5%-6% and in some cases the increases are as high as 8%. By way of example, increases in the tobacco industry are up to 15% over two years

The Easter gift

However, because Easter falls early this year, the approximately 700,000 people paid the minimum wage will not have time to receive an Easter gift enhanced based on the new wage as the law says the gift this year is calculated based on the employee’s earnings on March 28, before the new wage is implemented. Thus, the bonus to be paid by Good Wednesday, April 8, will amount to €458.33 for a new employee, €504.17 for an employee with one three-year contract, €550.00 for two three-year contracts and €595.83 for three three-year contracts.

According to labour lawyer Yannis Karouzos , the increase in the minimum wage from 1.4.2026 will not be the basis for calculating the Easter Gift.

This follows from the relevant provisions of the Code of Labour Law (K.E.D.). In particular, according to Article 142 of the CC, the Easter holiday allowance relates to the period from 1 January to 30 April and is paid on Good Wednesday. At the same time, under Article 145(1)(a), the Christmas Eve allowance is paid from 1 January to 1 January of each year. 1 of the Labour Code, the Easter bonus is calculated on the basis of the regular remuneration actually paid on the 15th day before Easter or on the date of termination of the employment relationship. Salary paid means the total of the regular remuneration. These provisions are the ones that determine the decisive point in time for the basis for calculating the Gift.

Since Easter Sunday 2026 falls on 12 April 2026, the critical date for the purposes of Article 145 of the CRA is 28 March 2026, which is a point in time prior to the new minimum wage coming into force on 1 April 2026. Therefore, for employees who are paid at the statutory minimum, the basis for calculating the 2026 Easter Gift remains the old minimum wage and not the increased one that will come into force a few days later.

One further critical observation should, however, be added. According to Article 142 para. 2 of the C.R.C., the employer may withhold the amount of the allowance corresponding to the allowance up to April 30, provided that he does not pay it after that date. This means that when the Good Wednesday Bonus is paid on Good Wednesday, the full amount due up to 30 April may not be paid, but the part corresponding to the period from Good Wednesday to 30 April may be withheld, to be paid later, but in any case not after 30 April.

In this respect, a practical paradox arises, as it is possible that an employer may, after 1 April 2026, pay part of the Easter Gift that is still calculated on the basis of the old minimum wage, even though the new minimum wage will have already come into force in the meantime.

Simply put, the increase in the minimum wage from 1 April 2026 affects the earnings of employees paid at the minimum wage for the period from that date onwards, but not the 2026 Easter Gift, whose basis of calculation relates to an earlier time.

The allowances

At the same time, the new update brings with it a long list of 20 benefits and allowances. The unemployment benefit is being increased to €565, while recipients of the special maternity benefit, parental leave allowance and seasonal allowances for builders, artists and tourism workers will see similar increases. Of particular importance is the adjustment of the marriage allowance, which is calculated as 10% of the basic salary (92 euros), as well as allowances for employment and internship programs.