Minimum wages will receive annual increases equal to inflation and the productivity of the Greek economy from 2028 onwards, according to the new wage adjustment system, which will be discussed today during the cabinet meeting, in order for the relevant bill to receive approval and put to public consultation.
The minimum wage – The 4 changes
The new system of automatic adjustment of the minimum wage, from 2028, will come into force after the ratification by our country of the European directive on adequate minimum wages.
According to Labor Minister Niki Kerameos, who will propose the relevant bill, four innovations are introduced with the new salary increase system:
1. The first innovation concerns security as it is expressly provided that there can be no reduction of the minimum wage.
2. A connection is made between the minimum wage and the real data of the Greek economy.
3. For the definition of the minimum wage, objective data from ELSTAT will be taken into account
4. And the fourth concerns the fact that for the first time it will also concern civil servants and this implies an increase, to some extent, for them as well.
The goal set by the Ministry of Labor is to define a model where the minimum wage will result from a more objective, predictable and transparent way of calculation.
Collective agreements
At the same time, the sanctioned directive gives particular importance to increasing the coverage of workers by collective labor agreements with the target of 80%. The coverage rate of collective bargaining in Greece is very low.
The Directive proposes to draw up an action plan to strengthen collective bargaining to determine wages, especially at sectoral or cross-sectoral level. The aim is to increase the percentage of employees covered by collective bargaining, with the active participation of the social partners.
Today, the percentage covered by some form of sectoral contract is limited to barely 24%. Also, the social partners find a long delay in the extensibility of a collective agreement, to all the companies in the sector it covers. Thus, in practice, the implementation of such a contract is dramatically delayed.
Mrs. Kerameos has pledged that there will be a new round of dialogue with the social partners on the issue of strengthening sectoral agreements and notes that “the dialogue will continue until the last hour when the bill will be debated in Parliament”.
Source OT
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