Workers in Greece’s public and private sectors are expected to see pay increases in 2027 under a package of government measures that includes a higher minimum wage, reduced social security contributions and additional payments for public employees.
The minimum monthly wage is expected to rise by €40 to €960 gross in April 2027, followed by another €40 increase in January 2028 that would bring it to €1,000.
The first increase is estimated to translate into approximately €38 more in monthly take-home pay, although the actual benefit will vary depending on workers’ existing salaries, years of service and tax obligations.
The measures are outlined in draft legislation following Prime Minister Kyriakos Mitsotakis’ announcements at the Thessaloniki International Fair.
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Minimum Wage and Seniority-Based Pay Increases
Workers who complete a recognized three-year period of service may qualify for an additional seniority-based increase on top of the minimum wage adjustment. The amount workers receive will depend on their existing salaries, recognized years of service and tax obligations.
The higher minimum wage will also affect payments linked to it, including unemployment benefits, special maternity protection payments and certain overtime rates.
The government also plans to introduce a new mechanism for determining minimum wage increases in 2028, with future adjustments more closely linked to objective economic indicators.
Social Security Contributions to Fall in April
A reduction in employee social security contributions is also scheduled for April 2027. The measure will apply exclusively to the employee share of contributions in the private sector, reducing payroll deductions and increasing net earnings.
Its estimated fiscal cost is €163 million in 2027 and €218 million in 2028.
Following the reduction, combined employer and employee social security contributions in the private sector will have fallen from 40.56% in 2019 to 34.66% in 2027, a decline of 5.9 percentage points. Over the same period, employee contributions will have decreased from 15.75% to 12.87%, while employer contributions will have fallen from 24.81% to 21.79%.
Public Sector Pay Raises and Christmas Bonus
Public sector employees are also expected to receive salary increases following a change introduced in 2025 linking annual minimum wage adjustments to the public sector pay scale. Monthly increases are estimated at €40 to €50, depending on the employee’s salary grade.
The adjustment will apply to newly hired public employees as well as those in other salary grades, with the precise amounts determined by the relevant provisions.
A Christmas bonus of €500 gross is also planned for December 2027 for approximately 720,000 public sector employees and officials. The estimated net payment will range from €257 to €389, depending on age, years of service, income and dependent children.