The suspension of the application of the three years by acts of the cabinet in 2012 it does not create a retroactivity issuesaid the Minister of Labor, Adonis Georgiades specializing today the measure of the “thaw” that he announced from the floor of the 87th TIFon Saturday night, the prime minister, Kyriakos Mitsotakis.

The main points of the briefing by the Minister of Labor Adonis Georgiadis:

  • Unemployment is decreasing, the economy is doing very well, we have a record unemployment rate
  • The pressure to find new workers in many industries is constantly intensifying
  • The fall in unemployment will continue in the coming months
  • The three-year unfreezing was a pre-election commitment, it was a will, not an afterthought

For retroactivity Mr. Georgiadis said that “the cabinet acts of 2012 proceeded to suspension of the 3-year application. Suspension never creates issues of retroactivity.”

The Minister of Labor added that the government is not going to blow up the good image of the economy, he stressed that this is a balanced regulation, it protects the rights of workers and accelerates wage development, it takes into account the competitiveness of the economy.

“With these criteria, we arrived at this regulation that will be legislated immediately,” emphasized the Minister of Labor.

Examples

Then, the Minister of Labor Anna Stratinaki he gave examples of the implementation of the new provision, which, as mentioned, will be submitted within the week to the Parliament:

Example 1: Minimum Wage Employee – Hired 14.09.2003

Until 31.12.2023

• Total length of service until 31.12.2023 = 20 years, 3 months and 18 days

• 8 years and 5 months until 14.02.2012

• Salaries on 31.12.2023 = 780 euros and 2 three-year terms (20%) – 936 euros

From 01.01.2024

• On 01.08.2024 the salaries are 780 euros and 3 three years (30%) = 1014 euros.

• Increase of 234 euros or 30%

• With an increase in the minimum wage in 2024 by e.g. 5%, total earnings amount to 1064.7 euros or 36.5%

Example 2: Minimum Wage Employee – Hired 1.05.2006

Until 31.12.2023

• Total length of service until 31.12.2023 = 17 years and 8 months:

• 5 years, 9 months and 13 days until 14.02.2012

• Salaries on 31.12.2023 = 780 euros and 1 three-year (10%)- 858 euros

From 01.01.2024

• On 18.03.2024 the salaries are 780 euros and 2 three-year terms (20%) = 936 euros,

• Increase of 156 euros or 20%

• With an increase in the minimum wage in 2024 by e.g. 5%, total earnings amount to 982.8 euros or 26%

Example 3: Minimum Wage Employee – Hired 14.10.2009

Until 31.12.2023

• Total length of service until 31.12.2023 = 14 years, 2 months and 18 days

• 2 years and 4 months until 14.02.2012

• Salaries on 31.12.2023 = 780 euros and 1 three-year (10%)- 858 euros

From 01.01.2024

• On 01.09.2024 the salaries are 780 euros and 1 three years (10%) = 858 euros.

• Increase of 78 euros or 10%

• With an increase in the minimum wage in 2024 by e.g. 5%, total earnings amount to 1081.1 euros or 38.6%

Example 4: Employee paid the minimum wage – Hired 01.10.2020

Until 31.12.2023

• Total length of service until 31.12.2023 = 3 years and 3 months

• Salaries on 31.12.2023 = 780 euros

From 01.01.2024

• On 01.01.2027 the salaries are 780 euros and 1 three-year (10%) = 858 euros.

• Increase of 78 euros or 10%

• With an increase in the minimum wage in 2024 by e.g. 5%, total earnings amount to 1081.1 euros or 38.6%

Example 5: A cook paid with the applicable Branch SSE of hotel employees of the whole country – Hired 01.10.2005

Until 31.12.2023

• Total length of service until 31.12.2023 = 18 years and 3 months

• Salaries on 31.12.2023 = basic salary 911.34 euros and 33.6 euros long-term allowance (6 completed years until 14.02.2012 * 5.6 euros per year), i.e. a total of 944.94 euros

From 01.01.2024

• On 17.08.2024, the salaries are 956.91 euros the basic salary and 39.2 euros the multi-year allowance (7 completed years * 5.6 euros per year) = 996.11 euros.

• Increase of 51.17 euros or 5.4%