Minimum Wage of 880 Euros: What's the Real Cost for Businesses?

Employers' associations are calling for a further reduction in social security contributions, as non-wage costs remain high in Greece compared to other EU and OECD countries.

According to INEMY-ESEE, the current minimum wage of 880 euros costs the business 1,250.4 euros per month, while the employee receives a net amount of 867.9 euros. ESEE emphasizes that attention should be paid to the impact of the minimum wage increase on higher average wages.

IOBE reports that while the nominal minimum wage has increased by 41.6% in the period 2019-2026, the reduction in mandatory social security contributions totals 5.4 percentage points.

KEPE estimates that there is room for an increase in the minimum wage between 3.5% and 5%, while the SBE Institute proposes increases of around 4%, provided they are in line with the resilience of businesses.

At the European level, Greece holds the 11th highest position among the 22 EU countries with a statutory minimum wage.