Economist Tasos Yasemidis outlined to Politis how the gradual reinstatement of CoLA from 2025 will affect wages. Assuming the cost-of-living index reaches 0.8% in 2025, payouts at 80%, 90% and 100% will result in varying monthly increases depending on income level.
Example increases at 0.8% index
For a monthly salary of €1,000
• CoLA at 80%: +€6.40 per month
• CoLA at 90%: +€7.20 per month
• CoLA at 100%: +€8.00 per month
For a monthly salary of €2,000
• CoLA at 80%: +€12.80 per month
• CoLA at 90%: +€14.40 per month
• CoLA at 100%: +€16.00 per month
For a monthly salary of €5,000
• CoLA at 80%: +€32.00 per month
• CoLA at 90%: +€36.00 per month
• CoLA at 100%: +€40.00 per month
How to read the figures
These figures are indicative gross monthly increases, based on a 0.8% cost-of-living index for 2025. Actual adjustments will depend on the final inflation rate and the agreed CoLA payout applied in each sector or collective agreement.
As income rises, so does the absolute amount of the increase. Employers will also need to account for the effect on payroll costs and social contributions as CoLA is gradually reinstated.
