In progress are the consultations to determine its new increase minimum wagewhich will take effect from 1 April 2024.

The process started on February 5, with the sending of the written invitation by Coordination Committee of the consultation and is due to be completed by March 22 at the latest. At that time, the proposal of the Minister of Labor and Social Security, Domnas Michailidou, will be submitted to the cabinet for the determination of the minimum wage of employees and the minimum daily wage of artisans.

This is the fourth consecutive increase in the minimum wage, which the government is proceeding with. From 650 euros in 2019, the minimum wage increased to 663 euros in January 2022, to 713 euros in May 2022 and, from April 2023, to 780 euros.

It is particularly important that the new increase will be implemented before the start of the summer season and will also concern workers in the tourism industry.

The aim is to increase workers’ incomes and preserve the competitiveness of the Greek economy.

At the same time, the increase, which is being launched, will relieve not only those who are paid the minimum wage, but also those who are beneficiaries of benefits based on the minimum wage or the minimum daily wage.

In any case, the Ministry of Labor assures that the government’s commitment to a minimum wage of 950 euros and an average wage of 1,500 euros over a four-year horizon will be fully implemented. As government officials note, this is a completely realistic and achievable goal.

At the same time, employees in the private sector are also favored by the “unfreezing” of the three years, without retroactive effect for the period from February 14, 2012 to December 31, 2023.

For example, in the context of the consultations, General Confederation of Professionals, Craftsmen, Merchants of Greece (GSEBEE) is positive about a new increase in the minimum wage. According to the information so far and without the final decisions having been made yet, in its report, GSEVEE considers that inflation should also be the determining factor for the increase in the minimum wage in 2024, i.e. the increase will not must fall short of 2023 inflation.

As he argues, a significant – beyond the level of inflation – increase in the minimum wage should be accompanied by supporting measures mainly for small and very small businesses. Such measures could be the complete and unconditional abolition of the pretense fee, the establishment of an unrestricted business account and a brave new regulation of debts to the State. In addition, in the view of GSEVEE, the new presumptive way of taxation of individual businesses should be reviewed, as its connection to the level of the minimum wage creates a permanent disincentive for further wage increases.

THE Hellenic Confederation of Commerce & Entrepreneurship (ESEE) is in favor of a gradual increase. ESEE’s position is that the increase should be decided based on the level of inflation in 2023, but also taking into account the real capabilities of businesses.

ESEE requests, in parallel with the increase of the minimum wage, a subsidy of the employer’s insurance contributions and the abolition of charges, such as the benefit fee and the advance payment of taxes, especially now that the presumptive taxable income is linked to the minimum wage and points out that the strengthening of the income of more economically weak citizens could also be achieved with targeted measures against punctuality.

Her proposal General Confederation of Greek Workers (GSEE) is to increase the minimum wage to 908 euros per month. As he explains, in 2023, the gross median full-time salary is estimated at 1,443 euros per month, with 60% of the median salary, which is the relative poverty line, amounting to 866 euros. In addition, taking into account the increase in labor productivity in 2023 and the estimated inflation for 2024, the minimum wage should rise to 908 euros, in order to effectively protect minimum wage earners from punctuality, to break free from the trap of relative poverty and not to change their position in the income distribution.

The following are also included in the holistic proposal of the GSEE Labor Institute (INE/GSEE):

  • 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 workers, in the context of consultation between the social partners, is of critical importance for the acceptance of the final determination of its height, 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 (universality of validity of the terms of Collective Labor Agreements, their full retroactivity, principle of favoring their “confluence” and extension of their validity).
  • 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 working conditions.

According to information, Bank of Greece proposes a 4% increase in the minimum wage.