The new mechanism for determining the minimum wage from 2028 was presented at a press conference granted today by the Minister of Labor and Social Security Niki Kerameos. The General Secretary of Labor Relations, Nikos Milapidis, also participated in the presentation.

“The main priority of the Government,” said Mrs. Kerameos, “is to increase the income of workers and increase their purchasing power, linking the level of wages with inflation and the economic development of the country. Prime Minister Kyriakos Mitsotakis has pledged to increase the minimum wage to 950 euros by 2027, an amount that translates into a total increase of 46.2% from 2019, with a parallel reduction in social security contributions by 6 percentage points until 2027. In this direction, incorporating the European directive 2022/2041, we propose a way of calculation based on transparent, objective criteria, which benefits and ensures employees”.

N. Kerameos on the new minimum wage – From 2028 it will be determined by a mathematical formula and will not be able to be reduced

From 2028, the minimum wage is proposed to be fixed through a mathematical formula which will take into account of inflation, particularly for households in the bottom 20% of the income scale, as well as the increasing the productivity of the economybased on objective indicators that will be created by the Hellenic Statistical Authority (ELSTAT). The Minister pointed out that from 2028 there will be a minimum wage for private and public sector.

The new minimum wage setting system offers tfour essential innovations which enhance transparency, objectivity and employee protection:

  1. Safety. It is stipulated that the minimum wage cannot be reduced.
  2. Connection with the economy. The level of the minimum wage is linked to real economic figures, ie inflation and productivity.
  3. Transparency and reliability. The amount of the minimum wage is based on objective data from ELSTAT, strengthening confidence in the system.
  4. Coverage of civil servants as well. For the first time, the protection of the minimum wage is also provided for employees in the public sector.
  5. The conclusion of the Scientific Committee, which was established on the way to determine the minimum wage, was the subject of consultation with the social partners and ELSTAT, while their final proposals on the matter are awaited.

The role of the social partners in the process is particularly important. A Consultation Committee is created with the participation of all national social partners and ADEDY. This Committee will formulate an opinion in an institutional and unified manner during the transitional process of determining the minimum wage as well as in the event that a deviation from the automatic minimum wage adjustment mechanism is documented by the Scientific Committee in the event of, for example, major economic upheavals. It is noted that even in this case the amount of the minimum wage cannot be reduced.

Regarding the strengthening of Collective Bargaining, an Action Plan is planned to be drawn up within one year of the passing of the law, with a clear timetable and specific measures, after consultation with the social partners.

The aim is to strengthen the Collective Bargaining and to increase their effectiveness, while it is worth noting that the preparation of the Action Plan will be based on substantial and extensive consultation with the Social Partners.