Mar 29 2024: The conservative government of Greece has revealed plans to raise the country’s monthly minimum gross wage by 6.4%, reaching 830 euros. This decision, the fourth increase in five years, aims to alleviate the financial strain on households facing a higher cost of living.
The government, which recently survived a no-confidence vote, highlighted that this raise will benefit hundreds of thousands of workers. The previous increase occurred in April 2023, raising the monthly minimum wage by 9.4% to 780 euros.
Prime Minister Kyriakos Mitsotakis emphasized that this decision would support workers without compromising the economy’s strength and businesses’ competitiveness. Greece’s economy showed resilience, expanding by 2% last year, and is projected to grow by 2.9% this year, driven by factors such as tourism, increased investments, and domestic demand.
Mitsotakis reiterated the government’s commitment to fulfilling pre-election promises, including raising the monthly minimum wage to 950 euros by 2027 and increasing the average wage by over 25% to 1,500 euros within the same timeframe. Additionally, public sector wages and pensions are set to rise as part of the country’s economic recovery following a decade-long debt crisis.
The government’s focus on increasing wages aligns with its strategy, opting against one-off handouts to support vulnerable groups. The upcoming EU parliamentary elections in June will serve as a key test of the government’s popularity since its re-election.
Greece’s progress is notable, having emerged from international bailouts in 2018 and regaining investment-grade status last year after over a decade in the “junk” category due to its significant national debt.
