Finance
Greece Plans Further Minimum Wage Rise Amid Iran War Pressure
Published by Global Banking & Finance Review®
Posted on March 26, 2026
2 min readLast updated: March 26, 2026
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Greece will raise its gross monthly minimum wage to €920 from April 1, marking the sixth increase in four years as the government combats inflation, energy price shocks linked to the Iran conflict, and aims to restore purchasing power.
Greece to Implement Sixth Minimum Wage Increase Since 2020 Amid Crisis
Overview of Greece's Minimum Wage Policy and Economic Recovery
Recent Minimum Wage Increase Announcement
ATHENS, March 26 (Reuters) - Greece will raise its gross monthly minimum wage by 4.5% from April, the sixth rise in four years, it said on Thursday, as it seeks to restore living standards battered by a decade-long financial crisis and shield consumers from rising energy costs amid the Iran conflict.
Background: Greece's Economic Crisis and Recovery
Impact of the 2009-2018 Debt Crisis
Greece is recovering strongly from a 2009-2018 debt crisis that wiped out nearly a fourth of its output and slashed pensions and wages as part of austerity in exchange for 290 billion euros ($335 billion) in bailout loans.
Government Measures to Boost the Economy
The centre-right government of Prime Minister Kyriakos Mitsotakis, who won a second term in 2023, has cut taxes and social security contributions and increased the minimum salary for full-time employees five times since 2022 as it targets a minimum monthly salary of 950 euros by 2027.
Challenges Facing Greek Households
Inflation and Purchasing Power
But purchasing power in the country still trails the European average and is taking a fresh blow from surging energy prices stemming from the ongoing U.S.-Israeli war with Iran and fueling inflation.
Government Interventions to Support Citizens
Greece has imposed a cap on profit margins on fuel and some supermarket goods and last week announced subsidies for fuel and fertilizers and ferry ticket discounts.
Details of the New Minimum Wage Increase
Announcement by Prime Minister Mitsotakis
"To further support the people, we will jointly decide today a new rise in the minimum wage from April 1," Mitsotakis told a cabinet meeting on Thursday. He said his labour minister will propose that the gross monthly minimum wage be increased to 920 euros from 880 euros from April 1.
Approval Process
Consultation with Stakeholders
The government consults employers and employees before setting the minimum wage which needs cabinet approval to take effect.
Additional Information
($1 = 0.8649 euros)
(Reporting by Angeliki Koutantou and Renee MaltezouEditing by Keith Weir)
Key Takeaways
- •Monthly gross minimum wage will rise by 4.5% to €920 from €880 starting April 1, 2026, pending cabinet approval, continuing a broader plan to reach €950 by 2027. (en.parapolitika.gr)
- •This marks the sixth wage increase since 2022, contributing to over 35% growth in nominal minimum wage since 2019—from €650 to €880 today. (athens-times.com)
- •Struggling with surging energy costs amid the U.S.-Israeli–Iran war, Greece is also imposing profit caps on fuel (max €0.05 wholesale, €0.12 retail per litre) and essential goods until June to shield consumers. (greekreporter.com)
References
Frequently Asked Questions about Greece plans further minimum wage rise amid Iran war pressure
1When will Greece's new minimum wage take effect?
Greece's new minimum wage will take effect from April 1.
2How much is the new gross monthly minimum wage in Greece?
The new gross monthly minimum wage will be 920 euros, up from 880 euros.
3What is the reason for Greece raising its minimum wage again?
The increase aims to restore living standards, shield consumers from rising energy costs due to the Iran conflict, and strengthen economic recovery.
4How many times has Greece increased the minimum wage since 2020?
Greece has raised the minimum wage six times in the past four years.
5Who decides the minimum wage increase in Greece?
The government consults employers and employees, then the cabinet approves the minimum wage increase.