Greek Government plans increase in national minimum wage

A key structural reform implemented by Greece as conditionality for its 2010 bailout was reducing the national minimum wage. This policy reform was intended to make the Greek economy more competitive, particularly in labour-intensive areas such as tourism, catering and agriculture. The government has now announced plans to increase the minimum wage for younger workers and pay a housing allowance to economically-disadvantaged citizens. The Troika demand that Greece reduce its minimum wage to enhance national competitiveness was one of the most difficult reforms to make. It caused a significant reduction in consumer disposable income and therefore in consumer spending at a time where mandatory