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The shortening of the consultation period for the new minimum wage is foreseen by the amendment of the Ministry of Labor submitted to the Parliament by the Minister of Labor Domna Michailidou, who will propose the rate of increase to the cabinet on March 22 so that the new minimum wage will take effect from April 1.
The reasons for the rush are A) as soon as possible for the net salary amount to exceed 700 euros in order for families to be able to cope with the punctuality wave and B) to increase the salaries before the tourist season officially starts as they need to have a network seasonal employees not covered by collective agreements.
In particular, the sending of a written invitation by the Coordination Committee of the consultation should take place by February 5, 2024.
b) Compilation and submission of the bodies' report should be completed no later than February 19, 2024.
c) The transmission of the memorandum and the documentation of each person consulted by the Coordination Committee of the consultation to the other representatives of the social partners, with an invitation for an oral consultation, should be carried out no later than February 26, 2024.
d) The transmission of all the memoranda and documentation of the consulted parties, as well as the report of the specialized scientific and research bodies to the Center for Planning and Economic Research (K.E.P.E.) for the drafting of a Draft Consultation Conclusion, should be completed on no later than March 1, 2024.
Closure
e) The Draft Consultation Conclusion should be completed by 15 March 2024 at the latest.
f) The recommendation of the Minister of Labor and Social Security to the Council of Ministers, for the determination of the minimum wage for employees and the minimum daily wage for artisans, should be submitted no later than March 22, 2024.
Based on the estimates, the minimum wage will increase by around 5%, as it will have to incorporate the current inflation, but also a part of the increase in productivity. In practice, this is estimated to lead to a minimum wage equal to 820 euros (706 net) from 780 euros (667 net) today.
This means there is €120 to €130 left until 2027 to reach the government's minimum wage target of €950. Specifically, salary increases should be an average of 5% from 2024 to 2027. For example, if we assume that the salary increases every year by 5.2% from 780 it will rise to 821 in 2024, to 863 euros in 2025, in 908 euros in 2026 to reach 955 euros in 2027.
According to the procedure, the first step is the sending of a written invitation by the Coordinating Committee of the consultation to specialized scientific and research bodies to write a report on the evaluation of the current statutory minimum wage.
In their findings, the agencies will take into account inflation and the rate of growth, which have declined, except for food inflation, which remains at high levels.
On the other hand, the investment level achieved by the Greek government, the prospect of the end of the ECB's interest rate cut, the reduction of unemployment as well as staff shortages create a positive sign for an increase in the minimum wage.
It is recalled that the minimum wage from this year will also be strengthened with the seniority allowance (three years) that was unfrozen, although the beneficiaries in the first year will be minimal. According to GSEE estimates, only 1,500 minimum wage earners will complete one to three three-year terms at the end of January in order to receive increased wages. Within the year about 100,000 will establish the 10% increase while for new workers, the first increments will come from 2027 onwards.
The sectoral contracts in force will play an important role in increasing the average salary. According to the INE/GSEE, in 2022 a total of 38 collective bargaining agreements were in force (from 79 in 2010), 24 sectoral and co-professional collective bargaining agreements signed in 2022 and 14 collective agreements from previous years. In fact, only 9 of the 24 sectoral and homoprofessional collective bargaining agreements signed in 2022 foresee an increase in wages.
Mary Lampaditi- protothema.gr
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