The next four years will bring changes to private sector wages, if the ND mandate is renewed in the June 25 elections.

Increase of the minimum wage to 950 euros at the end of the second four-year period. This means an increase of about 5%-6% per year in the minimum wage for the next four years. Starting in 2024, private sector workers receiving the minimum wage will see an increase of around 5%. This means that next year, these workers will receive a minimum wage close to 820 euros so that in 2027 they will now be paid 950 euros.

Average salary 1,500 euros. Until now, increases in the minimum wage have not affected wages in general. The average salary today is 1,176 euros. To reach 1,500 euros means that the workers will have to see increases of 27%. To be able to achieve this, the legal status that applied to collective labor agreements and collective bargaining should be restored.

Three-year freeze. The three-year freeze will help raise the wage level. The three years are expected to thaw when unemployment falls to single digits. Based on the Stability Program submitted to the Commission, unemployment is expected to reach 11.8% in 2023 and decrease to 10.9% in 2024, 10% in 2025 and 9.8% in 2026. According to these data, as unemployment will pass into single digits in 2026, means that the unfreezing of the three years could take place from that year onwards, i.e. from 2027.

The issue that arises, however, if and when the three years are unfrozen, is whether there will be retroactivity. However, most labor experts argue that if the three-year period is unfrozen, at least from 1/1/2027, the 10% increases per three-year period will begin to count from that period of time and not retroactively from 2012 when they were “frozen”, as companies will they must immediately face a huge increase in their wage costs.

Currently, only those who have completed at least three years of insured service on February 14, 2012 receive three years. Those who were hired for the first time from February 2012 onwards are not entitled to an increase. The workers, who were hired after February 2012, lost the right to increase their salary due to seniority, with the result that they are still content with the minimum wage.