Minister of Labour and Social Insurance Marinos Moushouttas announced Tuesday the Government’s decision to increase the monthly minimum wage for full-time employment, after completing six months of continuous employment, from 1,000 to 1,088 euro.
Speaking after the conclusion of the meeting of the Council of Ministers at the Presidential Palace, he said that the Government, after assessing the overall macroeconomic and social data, decided to issue the amending decree on the Minimum Wage Limit of 2025, in accordance with the proposal of the Ministry of Labor and Social Insurance, which provides that the monthly minimum wage for full-time employment, after completing six months of continuous employment, increases from 1,000 to 1,088 euro.
The proposal for the adjustment of the National Minimum Wage took into account the level of inflation for 2024 (1.8%) as well as the forecast for 2025 (0.2%), which cumulatively amounts to 2%, the economy’s growth rate for the same two years, which is expected to be 3.9% and 3.4% respectively, significantly higher than the Eurozone average, the drop of unemployment to 4.9% in 2024, with a forecast of 4.3% for 2025, which is considered a full employment level.
He added that the decree also includes a provision that the monthly minimum wage before completing six months of continuous employment increases from 900 to 979 euro, while at the same time taking into account the projected slowdown in the growth rate for 2025 so that the increase does not negatively affect employment and development prospects, especially for small and medium-sized enterprises.
Low-wage workers are at the center of targeted government policies, he went on to say, adding that protecting those citizens from the risk of poverty and social exclusion is a priority.
“The increase in the minimum wage is expected to benefit around 50,000 workers” the Minister said.
He also noted that the Government supports entrepreneurship and strengthens the country’s development prospects, with consistency in fiscal discipline and socio-economic responsibility.
The new adjustment, he said, comes into force with the publication of the decree, which will take place before January 1, 2026, with effect from January 1, 2026 until December 31, 2027.
Asked whether the new minimum wage also includes the Cost of Living Allowance (COLA), he said that based on the Government’s calculations, COLA is also included at a rate of approximately 2%.
