Greece's Minimum Wage Tied to Economic Growth

Greece will index its minimum wage to GDP growth and consumer prices starting in 2028, aiming to protect household incomes. Under previous bailouts, the government set the wage, often leading to cuts. The new policy, announced by Prime Minister Kyriakos Mitsotakis, strives to stabilize and increase wages.

In a significant shift aimed at safeguarding household incomes, Greece will begin indexing its minimum wage to GDP growth and consumer prices starting in 2028. The announcement was made by Prime Minister Kyriakos Mitsotakis on Thursday, marking a departure from post-crisis wage policies.

Previously, under international bailouts during the 2009-2018 debt crisis, the government determined the minimum wage, often resulting in pay cuts. However, with the economy showing steady growth since then, the centre-right government led by Mitsotakis has increased the minimum wage four times, reaching 830 euros per month.

The government now plans legislation to further tie the monthly minimum wage to economic indicators and prevent any wage cuts, as announced at a televised cabinet meeting. This policy promises to boost current wages, with a target of reaching a minimum 950 euros per month by 2027, part of a broader aim to increase the average monthly salary to 1,500 euros.

(With inputs from agencies.)