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Minimum wage: The proposals of the agencies and the process for the final proposal


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What employers propose, what employees ask for and what the Bank of Greece values

By Chrysostomos Tsoufis

The process of determining the minimum wage is ongoing and the GSEE she was the first to open her papers asking for the third increase in the last 16 months to €826. The workers’ federation justified its proposal, saying that the expected inflation for 2023, which is placed in the budget at close to 5%, should also be taken into account.

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The GSEE proposal came in the shadow of Eurostat announcements according to which Greece is in 13th place among 22 EU countries in terms of the level of the minimum wage, but 4th from the bottom if purchasing power is taken into account – i.e. the prices of products – of citizens.

Today, employers will do the same. According to information from, the GSEVEE is expected to propose an increase between 8-10%, i.e. an amount from €770 to €784. A little more… thrifty is the federation of merchants for which a realistic increase would be in the region of 7%, i.e. at €763. Both of these bodies, however, put on the table issues of further reduction of non-salary costs (the government “owes” about half a unit more for the amount of insurance contributions) but also taxation issues such as the abolition of the business tax. Issues that in their opinion gain even more weight after the 9.6% increase in the contributions of freelancers and the self-employed.

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His proposal has already been submitted by YOU ARE who is asking for an increase of no more than 5.5%, i.e. no more than €753. Let us recall here that the government’s main justification for accelerating the increase in the minimum wage is to take advantage of the start of the tourist season for workers in the tourism industry, which notably faced a significant problem in attracting workers last season.

THE BSE continues to shape his proposal as he has until February 10 to submit his proposal.

For its part, the Bank of Greece has publicly stated that any increase below inflation (ie below 9.6%) is realistic and will not have secondary effects on the economy. Therefore, it sets the bar at €784 at the upper limit.

The LAUGH it is what brings together the proposals of the social partners until February 20th and based on these it will make its proposal until February 28th, and it puts into the debate an issue which seems to elude all of us who report on the minimum wage. Any increase in the minimum wage above €780 means that the taxpayer who is paid by it ceases to be protected by the tax-free allowance and is taxed!!!

Having received the conclusion of the KEPE, the labor minister will make his recommendation to the cabinet on March 10 and from April 1st the new minimum wage will be in effect.

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