Raising the minimum wage by 2% ( about 13 euro) not immediately but from 1 January 2022 approved today by the cabinet after a relevant suggestion of the Minister of Labor K.. Hatzidaki.
So the minimum wage from 650 euros that is today will be formed in 663 euros per month, the 773,5 if the fact that they are paid is taken into account 14 wages per year and the new minimum wage of craftsmen will be formed by 29.04 in 29.62 euro.
The new minimum wage for the private sector employee with 0 to 3 years of service is formed in 663 euros and with the marriage allowance at 729.30 . For the employee with previous service from 3 to 6 years is formed in 729.3 euros and with the marriage allowance at 795.60.
For the employee with previous service from 6 to 9 years is formed in 795.6 euros and with the marriage allowance at 861.60. For the employee with previous service over 9 years is formed in 861.9 euros and with the marriage allowance at 928.20
The decision was taken after the completion of the consultation in which the social partners participated, research and scientific bodies, the Bank of Greece etc., based on the proposals made, the resilience of the economy and business, especially small and medium-sized enterprises but also the international situation.
Weighting the data was difficult for the government as all employers and academics were in favor of "freezing" the minimum wage at current levels, arguing that the consequences of a possible increase in the ominous environment created by the pandemic would be detrimental to business viability and unemployment.
However for the final decision , workers' needs and emerging inflation were taken into account.
According to the reasoning of the financial staff, even the symbolic increase of the minimum wage will stimulate the market psychology and will mark the return to normalcy..
The Minister of Labor and Social Affairs, Kostis Hatzidakis, he stated:
"The Greek economy has experienced a deep recession due to the effects of the pandemic, which came in the wake of the financial crisis. Government concern with the decision to increase the minimum wage by 2% from January 1 2022, but also with the reduction of taxes and insurance contributions - which led to an additional increase in the income of employees by 1,6 % - is to support the purchasing power of employees without jeopardizing businesses and jobs. Taking into account the results of the consultation, we give a prudent increase that does not hinder the upward trajectory of the economy and in addition maintains the minimum wage in the middle of the table of the countries of the European Union. From now on, employers and employees have the opportunity to agree better pay with the Collective Bargaining Agreements they sign in a business, sectoral or national level. I know, of course, that this increase does not solve the problems of the workers. But we are following the path of prudence until the effects of the pandemic on businesses, especially small and medium-sized enterprises, are overcome.. And I am sure that the government's policy that leads to an increase in investment and a rise in the economic level of the country, is the only one that really creates the conditions for better pay, which will be certified in the procedures to be followed by 2022 and after".
The decision of the cabinet
The increase in the minimum wage by 2% from January 1st 2022 is, according to the Ministry of Labor, "The golden section chosen to enhance the purchasing power of employees, without jeopardizing the viability of companies at a critical point. The decision was made based on the evolution of the economy during the two years 2019 – 2020 (since the previous increase in the minimum wage took place at the beginning 2019) and the forecasts of international and domestic organizations and institutes for the development of the economy 2021 and in 2022 ". particularly:
- According to ELSTAT data (chained volume indicators with seasonal with calendar correction), the GDP the 2018 it was 180,068 billion. euro, while the 2020 due to the coronavirus crisis formed in 168,737 billion. euro. That is, ήταν μειωμένο κατά 6,29%, in relation to 2018, εξαιτίας κατά κύριο λόγο των επιπτώσεων της πανδημίας. Υπενθυμίζεται ότι η ύφεση το 2020 it was 8,2%.
- Οι προβλέψεις διεθνών και εγχώριων φορέων συγκλίνουν σε ισχυρά ποσοστά ανάπτυξης τόσο το 2021 as well as, mainly, the 2022 (indicatively: European Commission +4,3% the 2021, +6% the 2022, International Monetary Fund: +3,3% the 2021, +5,4% the 2022, Bank of Greece: +4,2% the 2021, +5,3% the 2022).
Λαμβάνοντας υπόψη τα παραπάνω δεδομένα για τη διετία 2019 – 2020 (cumulative recession 6,29%) and estimates for 2021 (development 3,3% – 4,3%), the government decided to increase the minimum wage by 2% from January 1 2022, a sensible one, as he states, increase, which reflects the performance so far, αλλά και τις προοπτικές της οικονομίας και δε βάζει σε κίνδυνο τις επιχειρήσεις και τις θέσεις εργασίας. The forecasts for the development of 2022 (5,3% – 6%) οι οποίες είναι ακόμη πιο ευνοϊκές, will obviously be taken into account, along with the accounts that will be available then, during the minimum wage adjustment process, where will the 2022.
According to the ministry, η αύξηση του κατώτατου μισθού σε επίπεδα που υπερβαίνουν τις αντοχές της οικονομίας και των επιχειρήσεων θα απέβαινε τελικά σε βάρος των ίδιων των εργαζομένων, as it would lead to:
- Κίνδυνο για τη βιωσιμότητα επιχειρήσεων που έχουν πληγεί από την πανδημία και λειτουργούν «στο όριο». This risk is particularly high, as well as the sectors most affected (focus etc.) έχουν ταυτόχρονα και υψηλό ποσοστό εργαζομένων που αμείβονται με τον κατώτατο μισθό.
- Κίνδυνο απολύσεων ή στροφής σε αδήλωτη / undeclared work due to the difficulty of absorbing the increase in labor costs in the midst of a recession.
- Περαιτέρω επιδείνωση της ανταγωνιστικότητας της Ελληνικής οικονομίας, to the severe impact already suffered by the economic crisis were added the negative consequences of the pandemic (productivity reduction by 6,9% and increase unit labor costs by 7,9% the 2020).
The minimum wage in Greece today
In Greece the legislator from 1/2/2019 The minimum monthly salary for employees is 650 euros and the wage for craftsmen in 29,04 euro. Δεδομένου ότι στην Ελλάδα καταβάλλονται 14 wages, this corresponds to 758 euro / month. With the circular 7613/395-18-02-2019 of the Ministry of Labor stipulated that these amounts be increased up to 30% depending on the years of service completed by the employee before him 2012. Therefore the minimum wage can be up to 195 euro higher (see. table).
Respectively from 1-1-2022 the minimum wage is set at 663 euros per month (the 773,5 euro with reduction of 14 salaries), while with the three years it reaches up to 198,9 euros higher. The minimum wage from 1-1-2022 is formed in 29,62 euro.
The current and new salaries for unmarried and married employees and craftsmen with three years are presented in the table below:
Minimum wage and wage in Greece - Current status and formation by 1-1-2022
Minimum wage and minimum wage for different categories of employees. | ||
Σday | 1-1-2022 | |
Years of service: | Yπάλληλοι (€ / month) | |
0-3 | 650,00 | 663,00 |
3-6 | 715,00 | 729,30 |
6-9 | 780,00 | 795,60 |
9 and above | 845,00 | 861,90 |
Minimum wage with marriage allowance (€ / month) | ||
0-3 | 715,00 | 729,30 |
3-6 | 780,00 | 795,60 |
6-9 | 845,00 | 861,90 |
9 and above | 910,00 | 928,20 |
Ecraftsmen (€ / day) | ||
0-3 | 29,04 | 29,62 |
3-6 | 30,49 | 31,10 |
6-9 | 31,94 | 32,58 |
9-12 | 33,40 | 34,07 |
12-15 | 34,85 | 35,55 |
15-18 | 36,30 | 37,03 |
18 and above | 37,75 | 38,51 |
Minimum wage with marriage allowance (€ / day) | ||
0-3 | 31,94 | 32,58 |
3-6 | 33,40 | 34,07 |
6-9 | 34,85 | 35,55 |
9-12 | 36,30 | 37,03 |
12-15 | 37,75 | 38,51 |
15-18 | 39,20 | 39,98 |
18 and above | 40,66 | 41,47 |
Since February 2019, the purchasing power of the minimum wage has increased, on the one hand because of deflationary pressures (-1,3% the 2020), on the other hand due to the decrease by 1,63% of insurance contributions paid by employees (from 15,75% in 14,12%). For a full-time employee who receives their minimum wage 650 euro, the total benefit from the reduction of insurance contributions amounts to 10,6 euro / month or 148,3 euro / year (14 wages).
That is, συνολικά το πραγματικό ετήσιο διαθέσιμο των μισθωτών πλήρους απασχόλησης που αμείβονται με τον κατώτατο μισθό των 650 euro has increased by about 250 euros per year, due to negative inflation and the reduction of insurance contributions and will increase by 1-1-2022 in addition against 182 euros with the increase of the minimum wage.
Source: aftodioikisi.gr