Greece’s debate over wage increases has entered a period of uncertainty as shifting geopolitical conditions and economic pressures reshape the outlook for workers and businesses.
The government is expected to announce a new minimum wage at the end of the month, but the ongoing war in the Middle East and its potential economic impact are complicating the decision. Rising energy and fuel prices are widely expected to push inflation higher and increase costs across the economy.
Against this backdrop, policymakers are trying to strike a balance between improving wages and protecting small and medium-sized businesses already under pressure from higher operating costs.
A More Conservative Wage Increase Likely
Officials are now leaning toward a more cautious increase in the minimum wage. Current estimates suggest a rise of about €40, which would bring the monthly minimum wage to roughly €920.
If confirmed, the move would delay the government’s earlier goal of bringing the minimum wage close to €950. That target is now expected to be reached in 2027.
Before the geopolitical crisis escalated, some policymakers had reportedly considered accelerating the increase and reaching €950 as early as April this year. However, the uncertain economic outlook has pushed those plans aside, with the government opting for a more conservative approach.
First Sector Labor Agreement Under New Framework
While the broader wage debate remains unsettled, a separate development could mark a turning point for collective bargaining in Greece.
A new sector-wide labor agreement covering the confectionery industry has been signed under a recently introduced legal framework that encourages broader labor agreements across entire sectors.
The three-year agreement, covering the period from 2026 to 2028, applies to about 2,000 businesses and roughly 23,000 workers across Greece.
Under the deal, wages in the sector will rise by more than 20% cumulatively by December 2028. The agreement also preserves existing labor allowances and provides an additional 20% wage premium for certain highly skilled technical roles in the industry.
Potential Revival of Collective Bargaining
The agreement was signed by the federation representing tourism and food service workers, with support from Greece’s main labor confederation, as well as the association representing confectionery manufacturers with the backing of Greece’s main employers’ organization.
Because both national labor and employer bodies were involved, the agreement automatically becomes binding across the entire sector nationwide.
Industry representatives note that confectionery production remains a significant contributor to the Greek economy. In 2024, the sector recorded exports worth €416 million, marking an annual increase of 11.2%.
Following this first agreement under the new legal framework, additional sector-wide labor contracts are expected to follow in industries that have gone years without such arrangements. These include food services, metal manufacturing, insurance companies, shipping businesses and travel agencies.
source: ot.gr
