In an effort to stimulate its economy, Greece has implemented a new limited six-day workweek this month. Under the new policy, certain industries that operate 24 hours a day in Greece may allow employees to work up to 48 hours per week, an increase from the previous maximum of 40 hours. Workers who surpass the 40-hour threshold will be compensated with an additional 40% in overtime pay. Greek Prime Minister Kyriakos Mitsotakis described the change as “growth-oriented” and aimed at reducing tax evasion caused by undeclared work.
In contrast to some other economies in Europe and the United States that have moved towards a shorter workweek, Greece’s recent policy change reflects efforts to adapt to changing economic conditions and improve overall productivity. For example, Senator Bernie Sanders of Vermont introduced legislation this year proposing a 32-hour workweek as the new standard defined by the Fair Labor Standards Act. Additionally, 30% of American CEOs surveyed expressed interest in exploring organization-wide work schedule shifts such as a four-day or 4.5-day workweek.
The global financial crisis of 2007-2008 led to a sovereign debt crisis in Greece, which resulted in austerity measures, increased taxes, and eventually bailout loans from the International Monetary Fund and the European Central Bank. The recent workweek change in Greece is just one of many efforts being made by countries around the world to address these challenges and promote sustainable economic growth.
