Greece weighs 2027 minimum wage up to 970 euros
Greece is preparing a 2027 minimum-wage increase to as much as 970 euros a month, pairing higher pay with tax, social security and financing relief for employers in a bid to protect jobs and keep small companies onside.
The policy shift matters because it would lift the country's wage floor beyond the government's earlier 950-euro target and affect more than 1.3 million workers once public-sector salaries linked to the private-sector minimum are included. With inflation still running hot and 2026 expected to end above 3.6%, officials are moving away from a modest 30-euro final step and toward a bigger increase that would leave households with more spending power but also raise payroll costs across the economy.
Prime Minister Kyriakos Mitsotakis has left open the possibility that the April 1, 2027 adjustment will overshoot 950 euros, with 960 or even 970 euros now under discussion. At 920 euros from April 2026, the current floor would need only a 30-euro rise to hit the original target, but that is increasingly seen as too small given the cost of living and the political timing ahead of national elections.
For workers, the gains are incremental but meaningful. A 950-euro gross minimum would lift take-home pay for a 30-year-old without children to about 794 euros from 772 euros, while 960 euros and 970 euros would bring net pay to roughly 801 euros and 808 euros, respectively. The gap matters for consumer demand in a country where lower-income households typically spend most of any wage increase quickly.
For businesses, the government is trying to soften the blow before the higher wage takes effect. A cut in social security contributions of at least 0.5 percentage point from Jan. 1, 2027 is already planned, while officials are also considering a lower advance tax payment and broader financing tools to make credit cheaper and more available for small and mid-sized firms.
That matters because the minimum wage is also a benchmark for a range of benefits, including unemployment and maternity payments, and because wage increases can spill into higher costs through seniority-based pay rises as more workers qualify for triennial increments. The combined effect could push the real cost of the policy above the headline increase.
The broader significance is that 2027 is likely the last year the government can set the minimum wage under the current system. From 2028, the formula shifts to inflation and labor productivity, reducing political discretion and making the next decision a final, more flexible intervention before automatic indexation takes over.
The next catalyst is the government's presentation at the Thessaloniki International Fair, where it is expected to spell out how far it is willing to go on wages and how much relief it will offer companies to offset the hit.
| Entity | Gains | Losses |
|---|---|---|
| Low-wage workers | ▲Higher take-home pay | ▼Still below living-cost pressure |
| Small and mid-sized firms | ▲Social charge and tax relief | ▼Higher payroll costs |
| Greek government | ▲Political support before elections | ▼Bigger fiscal and policy burden |
| Consumers | ▲More disposable income | ▼Risk of pass-through prices |