The process to determine its new increase is in the final stretch minimum salary, as the Center for Planning and Economic Research (KEPE) delivered the draft consultation conclusion and, now, the recommendation of the Minister of Labor and Social Affairs, Kostis Hatzidakis, to the cabinet for the determination of the minimum wage of employees and the minimum daily wage is expected of artisans.

Pending the decision on the new minimum wage, which will take effect from April 1, 2023, the political leadership of the Ministry of Labor and Social Affairs is keeping its cards closed, in view of the upcoming meeting of the cabinet, however, it has clarified that three will be weighed factors, which are the suggestions of the social partners and scientific bodies, which were received in the context of the relevant consultation, the endurance of the economy and the needs of workers who are paid the minimum wage.

As characteristically relevant sources of the Ministry of Labor and Social Affairs state, the aim is to find a balanced solution, which will lead to a significant and fair increase in the minimum wage and will result in the strengthening of the income of the employees, but also the preservation of competitiveness of the Greek economy.

According to the same sources, with the new increase, it is sought to essentially support workers and households, who are still affected by the high inflation brought about by the international energy crisis, without, however, testing the endurance of the economy and competitiveness of businesses.

In fact, they emphasize that the imminent increase in the minimum wage will stimulate the purchasing power of a large portion of workers and will work in addition to the other initiatives taken by the government to support households and businesses, such as the subsidy for electricity and natural gas, fuel pass, the “household basket”, emergency aid, market pass, etc.

It is noted that the decision will take into account the fact that inflation also moved upwards in 2022, closing the year with an average inflation of 9.6%. According to information, in the conclusion of the KEPE it is pointed out that, although, from October 2022, a noticeable de-escalation of inflation is recorded, “it remains high and forecasts for 2023 estimate that it will not be lower than 4.5%. At the same time, in 2022, the Greek economy largely continued to grow at high rates.”

It is also recalled 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%.

In addition, the minimum daily wage for artisans, based on the last increase in May 2022, amounts to 31.85 euros.

As the Ministry of Labor and Social Affairs underlines, the double increase in the minimum wage over the past year has significantly raised Greece’s position among the EU countries that have a legislated minimum wage.

At the same time, the increase in the minimum wage drags the unemployment benefit upwards, while benefits and allowances based on the minimum wage or the daily wage are adjusted.

The proposals

According to information, social agencies and research institutions advocate that, at this stage, it is necessary to give an increase to the minimum wage. However, the range of proposals for the rate of increase varies from 3% to as much as 15.8%.

At the same time, some social partners are in favor of further reducing non-wage costs, so as to increase the disposable income of workers, without increasing labor costs for businesses.

In particular, according to information, the proposals of the social partners and scientific bodies for the minimum wage, which are included in the draft consultation conclusion of the KEPE, are summarized as follows:

“GSEVEE: Proposal to increase the minimum wage by 8%. In addition, GSEVEE requests that the financial situation of small and very small businesses be taken into account and business support measures be taken to contain the increased operating costs of businesses, support their liquidity and deal with over-indebtedness, alongside the increase of the minimum wage.

Revealing are the research data of the Institute of Small Businesses (IME) of GSEVEE, according to which for 2 out of 3 households (63%), with the main source of income being the salary and an annual family income of up to 10,000 euros, the salary is not sufficient for the whole month (18 days), when the corresponding percentage last year was 50%, while the GSEBEE IME report shows an improvement in the labor market, so there is room for an increase in the minimum wage, according to the GSEVEE.

GSEE: Proposal to increase the minimum wage by 15.8% (to 826 euros).

Among other things, GSEE suggests:

– Restoring the determination of the minimum wage in the institution of the National General Collective Labor Agreement, as its role and function as a minimum general limit of protection, with universal application to all employees, in the context of consultation between the social partners, is of critical importance for the acceptance of the final determination of its amount, the strengthening of social and labor peace and, finally, the compliance of employers, which will allow to increase the effectiveness of its positive effects on the economy, society and democracy.

– Restoration of the protective regulations of individual and collective labor law.

– Three year reset.

– Removal of institutional and legislative obstacles to increase the coverage of employees by collective labor agreements (over 80% of employees).

– Strengthening of the Labor Inspectorate to effectively deal with workplace delinquency.

– Regulation and control of flexible and informal forms of work to protect minimum wages and work.

ESEE: Proposal to increase the minimum wage by 7%. ESEE requests, alongside the increase of the minimum wage, a subsidy of the employer’s insurance contributions and the abolition of charges, such as those of the employment fee and the advance payment of taxes, but also the strengthening of the income of the most economically weak citizens.

According to ESEEthe rate of absorption of European resources (e.g. NSRF 2021-2027) is expected to be critical, but also the extent of the implementation of the investments and reforms foreseen for 2023 by the “Recovery and Resilience Plan”.

SBE: Proposal to increase the minimum wage by 5.5%.

BSE: Proposal to increase the minimum wage by 5%-6%, provided that social security contributions are reduced by 0.6% and then another 3% in the period 2024-2025 and provided that additional interventions are made, such as the rational calculation of the minimum salary, taking into account social, economic, but also development factors, b) the reduction of non-wage labor costs (contributions), so as to approach the average among OECD countries, c) the increase of the disposable income of workers, through reducing the taxation of salaried work, in order to increase the net wages, without an excessive burden on the competitiveness of businesses, d) the strengthening of incomes through productive investments and the development of human capital and e) the support of vulnerable households as long as inflation is observed surge in food, fuel and energy prices.

Also, the BSE proposes a review of the current minimum wage determination process, but not a return to the old process.

YOU ARE: Proposal to increase the minimum wage by 5.5%.

Bank of Greece: Proposal to increase the minimum wage from 3% to 5%.

IOVE: Proposal to increase the minimum wage from 4% to 6%. In addition, IOBE proposes the reduction of non-salary costs, while requesting that the consultation mechanism not be changed.

LAUGH: Proposal for an increase in the minimum wage that does not exceed pensioners’ increases (7.5%), while, according to KEPE, the minimum increase in the minimum wage must amount to 4.5%”.