Significant Wage Shifts Expected in 2026
Thousands of workers across more than 10 sectors are projected to receive salary increases reaching up to 30 percent in 2026 as the government moves to expand Collective Labour Agreements. Fresh adjustments to the minimum wage from 1 April are also set to reshape earnings nationwide. Major gains are anticipated for pensioners, uniformed personnel and public sector employees under the new budget framework. New measures aim to consolidate the government’s evolving labour policy. Current data shows that only 740,000 out of 2,296,000 private sector workers are covered by existing agreements. Sectoral contracts remain active but apply exclusively to employees in companies affiliated with the relevant associations, leaving many others outside their scope.
How the Expansion of CLAs Will Change Pay
The extension of Collective Labour Agreements in early 2026 will introduce universal application across each sector. Workers currently earning the minimum wage will shift to higher pay brackets aligned with sectoral wage floors. Higher sectoral wages ensure sizeable increases for tens of thousands of employees once the extension takes effect.
Beneficiaries include professionals in industries such as petroleum, medical representation, electrical services, tourism and shipping. A total of 15 sectors currently operate under active agreements. These include contracts for petroleum and gas companies nationwide, banking through OTOE, and employees in travel office administration, among others.
Minimum Wage Set for New Increase
The prevailing scenario indicates a rise of approximately 40 euros in the minimum wage from 1 April. This shift will position the gross minimum wage at around 920 euros, up from its current 880 euros. Alternative projections place the figure at 911 euros gross. Any change will influence base salaries in the public sector as well as allowances linked to the minimum wage.
Government targets place the minimum wage at 950 euros by 2027.
Public Sector Employees to See Multiple Gains
Total benefits for public sector employees in 2026 are estimated at 620 euros. These gains stem from planned wage increases tied to the updated minimum wage, a revised pay scale for armed forces and security services, and reduced tax rates.
Further improvements include higher foreign service compensation, increased special duties allowances and enhanced tuition reimbursements for staff of the Ministry of Foreign Affairs. New allowances for correctional facility personnel and upgraded wage recognition for graduates of polytechnic and other 5 year university programs will also come into effect. Tax free library allowances for academic staff and recognition of research experience at universities and technology institutions will add more support.
Uniformed Personnel Receive Substantial Boosts
Up to 2 additional monthly salaries per year will be gained by armed forces and security service staff under the forthcoming income support measures. Officials describe these increases as the most substantial in at least 20 years.
Armed forces personnel are set to receive average increases of 145 euros per month.
Police officers, firefighters and coast guard staff are expected to gain 111 euros monthly.
Pensioners Benefit from Updated Rules
Pensioners will see further increases from 2026 onwards, with adjustments based on inflation and GDP. New rules prevent the pension increments earned by working pensioners from being counted when calculating the Solidarity Contribution. Additional provisions stop half of the pension increase from being offset by the personal difference from January 2026, with full removal of the offset beginning in 2027.
Approximately 671,000 pensioners will benefit from these changes. Total pension expenditure linked to the new measures is estimated at 629 million euros for 2026. Yearly 250 euro payments every November will continue strengthening pensioner income, supported also by the full indexation of the Solidarity Contribution for those who remain subject to it.
