A recent increase in the minimum wage is set to raise a wide range of employee benefits and allowances, impacting hundreds of thousands of workers.
As of April 1, the monthly minimum wage has risen to €920, marking a 4.55% increase from the previous level of €880. The adjustment also raises daily wages for manual workers and applies to salary scales in the public sector.
Broad impact across workforce
The wage increase is expected to directly affect around 700,000 jobs in the private sector, as well as all public sector employees. It also has indirect effects on average salaries across the economy.
In addition, a range of social benefits tied to the minimum wage—such as maternity, parental leave and unemployment allowances—will see corresponding increases.
Employer-paid benefits also rise
Several allowances paid by employers are also adjusted upward as a result of the higher minimum wage.
These include seniority-related bonuses, which can range from 10% to 30% of the base salary, as well as marriage allowances, typically set at 10% of the minimum wage or daily rate.
Long-term targets and future adjustments
Authorities aim to gradually increase the minimum wage to €950 by 2027.
From 2028 onwards, future adjustments are expected to follow a fixed formula, taking into account inflation and overall economic productivity—an approach already used in several European countries.
Source: tovima.com
