Economy

How much will the minimum wage increase: The scenarios and the factors that will judge the decisions

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In the next period of time the government will open its papers for the height to be formed the minimum wage from 1 Maywhich according to what he has at least stated the Prime Minister Kyriakos Mitsotakis will have a brave increase.

Officially, at least, the amount in which the minimum wage will be formed has not been leaked, although the scenarios give and take and only a few are not.

According to government sources, who want to remain anonymous, the whole process is moving at a completely institutional level and this is not going to change until the last minute, while any scenarios that see the light of day are not fed by the government.

On the other hand, of course, the same officials state that two important factors should be taken into account in making final decisions.

The first has to do with resilience of the economy and business, especially small and medium. The government sources They say that any increase should be within the capabilities of the economy, so as not to put businesses in a difficult position. They also note that the vast majority, those paid the minimum wage, are employees in small and medium enterprises and not in large Greek or multinational companies.

The latter, they note, employ highly specialized staff who are not paid the minimum wage.

The other parameter has to do with need to support low-income workers belonging to the so-called social group of vulnerable households which are undoubtedly most affected by high inflation.

The government is trying to balance these two axes, taking seriously the suggestions of the competent bodies. The manufacture KEPE handed over to the Minister of Labor the conclusion of the dialogue that preceded with the scientific and social bodies.

At the same time the Minister of Labor He clarified that his suggestion to the Council of Ministers will be made after the Easter holidays, in the last week of April and the validity of the new salary will start from May 1.

The indications, which are partially confirmed by government sources, are government recommendation to range between 6% and 7%in addition to the 2% given on 1.1.2020.

The level of wage growth – which is expected to outperform inflation – combined with measures to support households and businesses are part of government interventions to tackle accuracy.

In the meantime, employers ‘and employees’ bodies have positions that are significantly different from each other, regarding the amount of the minimum wage. Increases of up to 3% or 4% at most seem to be insisted on by strong employers’ organizations, such as BSE and SETE, while representatives of small and medium-sized enterprises have reservations about the impact of labor costs on the viability of their businesses.

On her side GSEE insists on restoring the minimum wage to 751 euros from 663 euros – a fact that corresponds to an increase of about 13% – that is, the “difference” between the two sides reaches 10%.

The Bank of Greece formulates the most restrained proposal with additional increases from 2.7% to 3.4%citing “increased uncertainty due to international energy prices, rising inflation and the war crisis in Ukraine.”

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