Greece plans wage and contribution reforms for workers

Ahead of the 90th IMF Annual Meetings, the Greek government is preparing a four-year plan to boost worker income through three primary interventions: increasing nominal wages, reducing deductions, and providing targeted benefits to enhance net income without establishing a permanent 13th month salary.

In the private sector, the government aims to continue increasing the minimum wage. Following the 950 euro milestone, long-term targets for 2030 include a minimum wage between 1,350 and 1,400 euros and an average wage near 2,000 euros. While these are not legislative mandates as they are paid by businesses, minimum wage hikes are expected to influence seniority-based pay scales and various allowances.

To ensure wage growth reaches more than just the lowest earners, the government is considering supporting the expansion of collective bargaining agreements. Additionally, a reduction in social security contributions by at least 0.5 percentage points is expected, aiming to increase net take-home pay while lowering non-wage costs for employers to encourage hiring and further raises.