“We will end up with a significant increase, which will support the workers, without testing the endurance of the economy” said Kostis Hatzidakis
The start of the procedure to determine the new increase in the minimum wage is in the final stretch, which will take effect earlier than last year, specifically, from April 1, 2023following the announcements of the Prime Minister, Kyriakos Mitsotakis.
According to the planning of the Ministry of Labor and Social Affairs, the process is to be activated in the coming days, immediately after the passing of the amendment that defines the schedule of the consultation with the social partners and scientific bodies on the minimum wage and will be completed no later than on March 10, 2023 with the recommendation of the Minister of Labor and Social Affairs, Kostis Hatzidakis, to the Council of Ministers for the determination of the minimum wage of employees and the minimum daily wage of artisans.
Ahead of the start of the consultations, Mr. Hatzidakis states to APE-MPE that the procedure provided for by the law is starting immediately, so that the new minimum wage will come into force from April 1, in accordance with the commitment of the prime minister.
The factors that will determine the amount of the new minimum wage
The aim, according to the Ministry of Labor and Social Affairs, is to find a balanced solution which will lead to a significant and fair increase in the minimum wage, weighing three factors: the recommendations of social partners and scientific bodies, which will be submitted in the context of relevant consultation, which is foreseen by the legislation, the endurance of the economy, but also the needs of the employees. In other words, the goal is to achieve the golden ratio between different needs, on the one hand is the strengthening of the income of the workers and on the other hand the preservation of the competitiveness of the Greek economy.
It is noted that, in 2022, a double increase in the minimum wage was legislated. Specifically, in February 2019, the minimum wage increased to 650 euros, from January 1, 2022, the minimum wage increased by 2%, resulting in it being 663 euros, while, from May 1, 2022, the minimum wage reached 713 euros, an increase of 7.5%.
Also, the minimum daily wage for artisans is currently €31.85 (as of May 2022).
“I believe that we will end up with a significant increase, which will essentially support workers and households, who are still affected by the high inflation brought about by the international energy crisis, without testing the endurance of the economy and the competitiveness of businesses. I remind you that, during the past year, there was practically a double increase in the minimum wage of 10%, which significantly raised the position of Greece among the EU countries that have a legislated minimum wage. We received it at 650 euros from the previous government, we have already increased it to 713 euros and it continues,” says Mr. Hatzidakis.
“With the new, fair and significant increase, which will be implemented in 2.5 months from today”, as he underlines, “the purchasing power of a large portion of employees will be strengthened with a measure that will come to frame the rest of the initiatives we have undertaken for the stimulation of growth and employment”.
The “road map”
Based on what the legislation stipulates, the steps for adjusting the minimum wage are as follows:
– Until January 20, 2023, a written invitation will be sent by the Coordination Committee of the consultation to specialized scientific and research bodies to write a report for the evaluation of the current statutory minimum wage, while the writing and submission of the report will take place no later than February 3, 2023.
– The next stage is the transmission of the memorandum and documentation of each person consulted by the Coordination Committee to the other representatives of the social partners, with an invitation for an oral consultation, which will take place no later than February 10, 2023.
– Subsequently, the transmission of all the memoranda and documentation of those consulted, as well as the report of the bodies, to the Center for Planning and Economic Research (KEPE) for the drafting of a draft consultation conclusion will take place no later than February 20, 2023 and the draft of consultation conclusion will be completed by 28 February 2023 at the latest.
Finally, no later than March 10, 2023, the proposal of the Minister of Labor and Social Affairs will be submitted to the Council of Ministers for the determination of the minimum wage for employees and the minimum daily wage for artisans.
Positive effect on the unemployment benefit as well
At the same time, the increase in the minimum wage drags up the unemployment benefit, which currently stands at 438 euros.
In addition, as the Ministry of Labor and Social Affairs has already announced, a series of benefits and allowances based on the minimum wage or the daily wage are being adjusted. These include, among others, the unemployment benefit for the self-employed, the new job programs, the special end of unemployment benefit, the benefit due to suspension of work, special seasonal benefits for employees in the tourism and food industry, builders, forest workers, etc. , the special maternity allowance, the parental leave allowance, the unpaid wages due to the insolvency of the employer, the availability allowance, the compensation of the students in the Vocational Schools (EPA.S) Apprenticeship of the Public Employment Service (DYPA), the compensation for the work programs experience, etc.
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