The new increase in the minimum wage and the daily wage to 780 euros and 34.84 euros, respectively (an increase of 9.4%), which comes into force from 1 April 2023 will drag up the unemployment benefit but also a series of benefits and allowances based on the minimum wage or daily wage, according to the data of the Ministry of Labor and Social Affairs.

As he states, the increase in the minimum wage, which concerns 585,000 workers, is important and fair, as it supports workers, especially in conditions of increased imported inflation, while taking into account the endurance of businesses.

The evolution of the minimum wage

Regarding the evolution of the minimum wage from 2019 until today, it has increased cumulatively by 20%, from 650 euros in February 2019, it increased to 663 euros in January 2022, to 713 euros in May 2022 and to 780 euros in April 2023 (total increase of 130 euros). In fact, if the gifts and leave allowance are taken into account, the minimum wage on a twelve-month basis is 910 euros, or 151.7 euros per month more than in 2019.

Regarding net earnings, the Ministry of Labor and Social Affairs clarifies that the net salary after taxes and contributions amounts to 667 euros per month (778 with gifts and leave allowance) from 548 euros in 2019 (639 with gifts and leave allowance). Overall, minimum wage workers will receive three more net wages than in 2019 on an annual basis, as annual earnings rise from €7,667 in 2019 to €9,336 in 2023 (plus €1,669 or 21.8%). .

It is also noted that those who had completed at least three years in their work, until February 2012, have additional earnings, which can reach up to 30%, depending on the years of service.

The minimum daily wage has also increased significantly, which from 29.04 euros in February 2019, increased to 29.62 euros in January 2022, to 31.85 euros in May 2022 and, in April 2023, increases to 34 .84 euros (a total increase of 5.8 euros).

At the same time, according to the data of the “ERGANI” Information System, the average salaries in 2022 increased by 12.4% compared to 2019.

According to the Ministry of Labor and Social Affairs, with the increase decided, Greece rises to 10th place among the 22 EU member states that have a minimum wage, from 13th place previously and, in terms of purchasing power, it rises to 13th position from 18th previously. In addition, as he points out, the three minimum wage increases more than offset the increase in inflation, and minimum wage growth is three times higher than GDP.

K. Hatzidakis at APE-MPE: The increase was possible due to the positive course of the last four years

The significant increase in the minimum wage from April 1, 2023 supports the income of workers, without exceeding the endurance of businesses, Minister of Labor and Social Affairs Kostis Hatzidakis told APE-MPE.

As he argues, “this increase was made possible because it was preceded, despite the difficulties, by the positive course of the last four years, with the growth of the economy, the reduction of unemployment, the increase of investments and exports. Results which, in turn, were achieved because there was government stability, seriousness and a positive climate in the economy, taxes and insurance contributions were reduced and business licensing was simplified.”

“Thus, the government defends the interests of the workers. With actions and not with words and cheap promises, like those made by SYRIZA, which proposed a higher minimum wage even than the one proposed by the GSEE!” comments Mr. Hatzidakis and underlines that the central goal of the next New Democracy government is to further improve the position of workers by increasing wages and reducing unemployment.

With his statements to APE-MPE, the Minister of Labor emphasizes that, without the conditions that restored confidence in the economy, the positive course cannot continue. “On the contrary”, as he notes, “problems will arise again, which we faced in previous years and for which painful decisions had to be made”. “I am sure that the Greek citizens will not choose a return to the problems of yesterday, but the continuation of development with a substantial dividend for the workers,” says Mr. Hatzidakis.

How benefits are shaped, after the increase in the minimum wage

For example, the unemployment benefit from 399 euros in February 2019, increased to 407 euros in January 2022, reached 438 euros in May 2022 and increases to 479 euros in April 2023 (a total increase of 80 euros).

The remaining benefits, after the increase in the minimum wage, are structured as follows:

Allowance-Amount

1. Special maternity benefit: Minimum salary (780 euros).

2. Parental leave allowance: Minimum salary (780 euros).

3. End of unemployment allowance: 13 daily allowances (249.08 euros).

4. Allowance for a three-month stay in the unemployment registers: 15 daily allowances (287.4 euros).

5. Allowance for those released from prison: 15 daily allowances (287.4 euros).

6. Work Support: 20 daily allowances (383.2 euros).

7. Insolvency of employer: Up to 3 salaries.

8. Builder’s season: 70% of the 37 square days (902,356 euros).

9. Emery season: 70% of the 50 days (1,219.4 euros).

10. Seasonal for artists, theaters, tourism: 70% of the 25 days (609.7 euros).

11. Other seasonal (woodworkers-resin collectors, tobacco workers, potters-ceramists-brickmakers and employees of the shipyard zone): 70% of the 35 per day (853.58 euros).

12. Aid for the self-employed: Monthly unemployment benefit (479 euros).

13. Work allowance: 50% of unemployment allowance (239.5 euros).

14. Compensation of EPA.S. students: 75% of daily salary (26.13 euros).

15. Internship allowance (IEK DYPA): 80% of the minimum wage (624 euros).

16. Gaining work experience: Minimum salary (780 euros).

17. Community benefit programs: Minimum daily wage.

18. Employment programs: Subsidy 50%-90% of the minimum wage.

19. For working students participating in exams: 30 daily wages for undergraduates (1,045.2 euros)/10 daily wages for postgraduates (348.4 euros).