The Ministry of Finance, Labor, and Transfers has announced that the minimum wage has been increased from €350 gross to €425 gross, effective January 1 of this year.
According to the ministry, the implementation of the decision will take place in two phases to facilitate employers’ gradual adjustment to the change:
- Phase 1: Minimum wage €425 gross (from January 1)
- Phase 2: From July 1, the minimum wage will reach €500 gross
“This increase represents an important measure to improve workers’ welfare and align the minimum wage with current labor market conditions. Responsible institutions will ensure full and proper implementation of this decision in accordance with existing legislation,” the announcement states.
However, the business community has considered this decision political and rushed, arguing that it was made without consultation or in-depth analysis.
Economic experts also note that this minimum wage decision could potentially increase informality regarding wage declarations for workers.
