On April 1, 2025, Prime Minister Kyriakos Mitsotakis announced that the monthly minimum wage in Greece would be raised by 6% – up from 830 to 880 Euros per month – in response to the “cost of living crisis” that is impacting many Western economies.

Mitsotakis has cited this as a step toward New Democracy’s target of a 950-euro minimum wage by 2027. The intent is to have an immediate positive impact on Greeks earning minimum wage, who will, of course, accrue more funds for living expenses.

However, the economic repercussions of this wage increase have the potential to produce myriad negative effects for the Greek people. Historically, minimum wage increases are quickly followed by higher costs of living and unemployment, as small to medium-sized businesses struggle to pay for their increased labor costs, consequently reducing the number of employees they can afford to pay, which in turn facilitates a rise in consumer prices.

In the United States, for example, states with lower minimum wages also have the lowest costs of living, with higher rates of success for small businesses. Additionally, this will make under-the-table employment of non-citizens, who benefit greatly from having little to no tax obligations, a more attractive option for businesses that will not be able to afford the increased minimum wage. As a result, it will become even harder for many Greeks to secure employment.

At KTE, we believe in taking a balanced approach to Greek economics. While we are not opposed to higher minimum wages, we believe that other measures must be taken to alleviate the immense regulatory, bureaucratic, and tax pressures on Greek businesses to ensure they can succeed and afford to hire Greek workers. We congratulate those who will see their wages increased by this policy, and pray that economic improvement remains a strong focus of the Greek government.