Newsroom
The government has approved an increase to the national minimum wage, following a Cabinet decision taken after a review of economic and social conditions. The revised rates will take effect on 1 January 2026.
Under the new regulation, the monthly minimum wage for full-time employees who have completed at least six months with the same employer will rise from €1,000 to €1,088. For workers who have not yet completed six months of continuous employment, the minimum monthly wage will increase from €900 to €979.
The decision follows a proposal by the Ministry of Labour and Social Insurance and reflects a broader effort to balance income protection for workers with the financial sustainability of businesses. Government officials emphasized that maintaining competitive and viable enterprises is essential for long-term job creation and stable living standards.
In setting the new wage levels, authorities considered several economic indicators. These included inflation figures of 1.8% for 2024 and a projected 0.2% for 2025, as well as strong economic growth forecasts of 3.9% and 3.4% for the same years, well above the eurozone average. Declining unemployment also played a role, with joblessness falling to 4.9% in 2024 and expected to reach 4.3% in 2025, a level associated with near-full employment.
At the same time, the government factored in expectations of slower economic growth in 2025 to ensure that the wage increase would not undermine employment levels or disproportionately burden small and medium-sized enterprises.
The policy is part of a wider strategy aimed at supporting low-income workers and strengthening social cohesion. Officials noted that raising the minimum wage should help boost purchasing power and reduce the risk of poverty and social exclusion, without triggering inflation or weakening the country’s competitiveness. Approximately 50,000 workers are expected to benefit from the change.
Looking ahead, the Minimum Wage Adjustment Committee will continue its work throughout 2026. Its mandate includes examining how minimum wage levels affect economic growth and exploring the potential alignment of the minimum wage framework with hourly productivity measures.
The government reiterated its commitment to a social market economy model, combining fiscal discipline with support for entrepreneurship and long-term economic development.
