Chania hotel workers benefit from minimum wage increase

The subject of the minimum wage is in the news. Last Monday a local agreement was reached for a minimum wage in the hospitality industry, based on an assumption about the national minimum wage for 2025, while two days later, the Prime Minister announced an increased national minimum wage with a slightly lower figure. This will presumably result in further negotiations between the Hoteliers and their employees – unless the provision for an adjustment has already been made. As reported in Haniotika Nea:

New collective agreement in the hospitality industry
On Monday 24th March the Chania Hotels Association, in collaboration with the Chania Hotel Employees’ Association completed the renewal of the Local Branch Collective Labour Agreement (SSE). As announced by the Hotels Association:

Signing of the local Collective Labour Agreement for the hotels sector in Chania
At the signing of the local Collective Labour Agreement on 24th March were (2nd left to right): President of the Chania Hotel Employees’ Association Manolis Bamiakis, President of the Chania Hotels Association Emannouil Stamatakis, Vice-president Kyriakos Papadakis and Secretary Alexandros Kapsalakis. Photo: Haniotika Nea.

“The aim is to achieve harmony between employers and employees, while matching this cooperation with the real conditions which prevail in the labour market but also listening carefully to whatever issues there may be, so that the Hotels sector can remain competitive but also attractive for employees.

“This local SSE defines four categories of employee (according to speciality and training), in which the lowest wages will be appreciably higher than the minimum wage set by the Greek government in the National SSE.

“If we assume that the new minimum wage set by the Greek Government for 2025 is €890, then the Local Branch SSE which we have signed sets wages as follows:
1. For Category A, 14.99% above €890
2. For Category B, 12.57% above €890
3. For Category C, 10.33% above €890
4. For Category D, 5.45% above €890.

“For 2026 the lowest wage will be 1.75% above the minimum wage of €950 which the Greek Government has set as a target for 2027.

“We thank the Chania Hotels Association for their harmonious cooperation and wish everyone Health and a Good Season!”
(Haniotika Nea, 26/03/25)

The Prime Minister announces a new minimum wage
At a Cabinet meeting on 26th March the Prime Minister Kyriakos Mitsotakis announced that the minimum wage will be increased to €880 from 1st April. Addressing the assembled ministers he said:

Thr Prime Minister at the Cabinet meeting of 26th March
At a Cabinet meeting on 26th March, the Prime Minister Kyriakos Mitsotakis announced that the national minimum wage was being increased from €830 to €880 monthly from 1st April. Photo: Primeminister.gr

“The main subject of today’s meeting is the approval of the fifth consecutive increase in the minimum wage in our country. It is a decision which the Labour minister will shortly introduce to the meeting, which will be in force from 1st April and will simultaneously upgrade the earnings of public employees, while also raising 19 allowances in different categories. Chiefly, however, it will signal once more the government’s intention to gradually return to the community a portion of our collective development.

“Following the latest adjustment, the minimum wage – and I would like to remind you that we were at €650 in 2019 – will go from €830 where it stands today to €880 from 1st April. That is an additional supplement of €50 per month, and the gross increase by comparison with 2019 has reached €2,735 per year – in other words, almost 5 net monthly instalments of the past wage – while the annual net income for the worker will now approach one additional monthly wage compared with last year.

“I would remind you that this measure affects 595,000 workers in the private sector but, as we said, it also draws in 600,000 public sector workers. It of course also applies to those who are receiving allowances for maternity, marriage and unemployment….

“I would like to emphasise that this decision brings Greece up to the 11th place among the 22 European countries who have adopted a minimum wage system. Obviously it does not relieve all needs as much as we would wish. I believe however, that this decision demonstrates the steady steps [being taken] to implement our central pre-electoral commitment, which is none other than the continuous improvement of disposable income….”

 “I would remind you that our aim, our pre-electoral pledge, remains a minimum wage of €950 by 2027 and an average wage of €1,500. But the important thing is not only to increase wages but for these to have a positive overall impact on the labour market. For we need to recognise that each increase in wages must not undermine the competitiveness especially of SME’s – those who provide our employment. It seems that that is not happening, since unemployment has already fallen to 8.7% according to the most recent figures,” Mr Mitsotakis said.
(Haniotika Nea, 26/03/25)