Greece and Bulgaria implement major labor and wage reforms

Greece has announced a major economic package for 2027, totaling approximately 2.2 billion euros, as part of its progress agreement with the IMF. Key measures include raising the minimum wage from 920 euros to 1,000 euros by January 2028 through two scheduled increases. Additionally, social security contributions for private-sector employees will decrease by 0.5 percentage points starting in April 2027, directly increasing net take-home pay.

The package also targets public sector employees, introducing a permanent 500 euro gross Christmas bonus starting in December 2027 and gradual salary increases of up to 80 euros. Other reforms include the abolition of certain tax surcharges for self-employed professionals and new tax rates for real estate transfers involving non-EU residents.

In Bulgaria, debates continue regarding the country's minimum wage and its status as a low-wage economy in the EU. While the government has proposed a new mechanism to determine the minimum wage, critics argue that projected increases—such as a forecasted 660 euros for 2027—may keep Bulgaria at the bottom of the EU scale, trailing behind neighbors like Serbia and Montenegro.