The minimum wage is expected to increase to €1,000 (€1,300 with three-year seniority increments) by 2028, from €920 today, through two increases that will take place in April 2027 and January 2028. The total increase since 2021, when the minimum wage stood at €650, will amount to 54%, according to the details of the measures announced by the government’s economic team following the Thessaloniki International Fair (TIF).
At the same time, from April 1, social security contributions paid by private-sector employees will be reduced by 0.5 percentage points, with a fiscal cost of €163 million for 2027 and €218 million for 2028.
The reduction in contributions will come from the portion of deductions allocated to DYPA (Public Employment Service), while the corresponding cost will be covered by the state budget through a permanent increase in the government grant to DYPA.
More specifically, the entire reduction will come from the social security contributions withheld from employees, so that salaried workers receive the full benefit of the reduction in contributions. Following this reduction, total social security contributions in the private sector will have fallen from 40.56% in 2019 to 34.66% in 2027, a reduction of 5.9 percentage points.
Employee contributions will have fallen from 15.75% to 12.87%, while employer contributions will have fallen from 24.81% to 21.79%. The successive reductions are presented in the table below.
Examples
Assuming that the minimum wage will increase by €40 in April 2027 and by a further €40 in January 2028, combined with the reduction in social security contributions from April 2027:
- A 23-year-old employee with no three-year seniority increments:
The gross salary will increase from €920 to €960 in April 2027 (with social security contributions reduced by 0.5%) and to €1,000 in January 2028. Net salary will increase from €797 to €836 in April 2027 and to €871 in January 2028. Overall, compared with this year, the employee will receive an additional €414 net in 2027 and €1,040 net in 2028. - A 34-year-old employee with three three-year seniority increments and no children:
The gross salary will increase from €1,196 to €1,248 in April 2027 (with social security contributions reduced by 0.5%) and to €1,300 in January 2028. Net salary will increase from €959 to €999 in April 2027 and to €1,035 in January 2028. Overall, compared with this year, the employee will receive an additional €420 in 2027 and €1,055 net in 2028. - A 45-year-old employee with three children and a gross salary of €2,000:
Net salary will increase from €1,621 to €1,733 from January 2027, due to the elimination of income tax, and to €1,743 from April 2027, due to the reduction in social security contributions. Overall, compared with this year, the employee will receive an additional €1,673 net in 2027. - A 40-year-old employee with one child and a gross monthly salary of €3,000:
Net salary will increase from €2,109 to €2,119 from April 2027, due to the reduction in social security contributions. However, it should be noted that in many companies, an increase in the minimum wage also leads to increases in higher salary brackets.
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