Significant changes to private sector wages are expected in Greece in 2026, with many employees set to see pay increases ranging from 15% to as much as 20%. The projected rise is linked to a government-backed effort to revive and expand collective bargaining agreements across a wider range of industries, alongside further increases to the national minimum wage.
The agreement between the government and social partners aims to restore collective negotiations and gradually extend sector-wide labor agreements to cover far more workers. Currently, only around 24% of employees in Greece are protected by a collective labor agreement. The government’s long-term goal is to raise this figure to 80% over the coming years. At present, just 25 sectoral agreements are in force, most of which expire in 2026, while 170 company-level agreements were signed in the first half of 2025 alone.
Additional momentum is expected from a new increase in the minimum wage, scheduled to take effect on April 1, pushing it beyond the current level of €880 per month. The government has committed to raising the minimum wage to €950 over the course of its four-year term, a target that could be reached or even exceeded by 2027.
Several key sectors are already covered by collective agreements, including private insurance companies, banks, and hotels. Under new legislation proposed by Labor Minister Niki Kerameos and expected to be voted on in the coming months, agreements with limited coverage may be extended to all businesses and workers within each sector. The reform is also expected to introduce collective agreements in currently uncovered sectors, such as private office employees, a group estimated at around 700,000 workers.
According to estimates, wage increases resulting from collective agreements, combined with allowances, could reach 15% to 20% above the minimum wage. In recent years, the number of workers earning the minimum wage has risen sharply, reaching around 600,000 today. Reversing this trend is a key government priority as part of broader efforts to protect household incomes from inflation.
In addition to wage growth, employees are also expected to benefit from tax reductions that took effect at the start of the year, including lower income tax withholding and additional tax relief for families with children.
Source: tovima.com
