Alpha News

New Minimum Wage Decree Sparks Controversy: Unions Claim Broken Agreement

Published December 31, 2025, 19:15

The new national minimum wage decree is causing controversy, as unions and workers claim a previously reached agreement with the government is not being honored. According to Andreas Matsas, General Secretary of SEK, the agreement stipulated that wages determined by sectoral collective agreements would serve as a reference point for setting the minimum wage, ensuring their application in specific sectors. However, Mr. Matsas believes the government succumbed to pressure from “three wizards” who influenced the final outcome to their benefit and to the detriment of low-wage workers. PEO and DEOK share the disappointment, emphasizing that the government does not seem to be taking into account the real needs of workers. The unions announced they will review and revise their strategy to address the injustices arising from the new decree. DEOK states that the decree exacerbates injustices for low-wage earners. Employers, for their part, acknowledge they are not fully satisfied with the decree but respect the government's decision. However, they warn that increased labor costs may be passed on to consumers, raising prices for goods and services. OEB estimates that the increases will be transferred to products and services. The new decree provides for an increase in the minimum wage of almost 9%, which further burdens the operating costs of businesses, especially in combination with other cost increases, such as energy costs. KESBE notes that this increase comes at a time of successive cost increases.