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Greece increases the minimum wage, effective from April 1

2024-01-23 12:17:24Kosova&Bota SHKRUAR NGA REDAKSIA VOX

From April 1, earlier than planned, the new increased minimum wage is expected to be implemented this year in Greece. This after the filing of an amendment to speed up the process and "so that the new increase can be taken into account in the tourist season". Local media report that the Ministry of Labor has started formal meetings with the representatives of the social partners and will request the shortening of the consultation process so that the procedure will be completed by the end of March.

Based on estimates, the minimum wage will move around +5%, as the growth rate should include current inflation as well as a part of productivity growth. In practice this is estimated to lead to a minimum wage of €820-830, up from €780 today, leaving an additional €120-130 by 2027 to meet the government's minimum wage target of €950. Thus, within the next few days, it is expected that an amendment will be submitted to the Greek parliament, with which the consultations will start earlier and will end in the middle of March.

Now, within the year 2024, the 14-year increase in the wages of civil servants as well as the "melting" of three years for about 100,000 workers in the private sector who are paid minimum wages are decisive factors that will judge, at the end of the year, the real rate of wage growth.

Especially for three years, based on current law, thousands of employees see their wages increase by 10% for every three years of service and up to 30% for nine years or more of service. Of course, even though the application of the three years is not voluntary, their restoration does not have retroactivity for the period from February 14, 2012 to December 31, 2023. Thus, in practice, the increase "affects" approximately 100 thousand workers who will have the right to the increase 10% in 2024. For new workers, the first increases will come from 2027 onwards.

In fact, by 2027, according to the commitment of Prime Minister Kyriakos Mitsotakis, the average salary should increase to 1,500 euros. Which requires some intervention in the labor market, since according to international organizations, the growth rates of average wages, at least for 2024, will be lower than those of 2023.

According to the workers' representatives, this fact proves, on the one hand, the need to restore sectoral agreements, which collapsed during the economic crisis, due to the change in the legal regime that governs them, and on the other hand, the restoration of negotiations on the wage level. minimal in the hands of the social partners.


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