Greece considers minimum wage hikes and public sector bonuses

The Greek government is considering significant wage adjustments and public sector incentives. Following IMF assessments, officials are evaluating a substantial increase in the minimum wage by 2027, with targets potentially reaching 980 or 1,000 euros from the current 920 euros.

To mitigate the impact on businesses, the government may combine wage hikes with a reduction in employer social security contributions. For instance, a 0.5 percentage point reduction in health sector contributions could lower non-wage costs for approximately 330,000 enterprises.

Separately, a new performance-based reward system for the public sector is expected to launch this autumn. The budget for this initiative has doubled to 40 million euros, allowing approximately 40,000 civil servants to potentially receive a bonus of up to one additional monthly salary based on the achievement of specific annual targets and measurable results.