The rate of growth and inflation will be the two factors from which the minimum wage will be determined, Kyriakos Mitsotakis pointed out in his presentation to the Council of Ministers which is currently underway. In addition, he noted that lowering the minimum wage would be prohibited by law.
He explained that “protagonist is the new increase in the basic salary in the perspective of reaching the 950 euros as we have committed in 2027but today we will discuss the new permanent designation system after 2027. I’d say it’s a pivotal initiative going forward the reduction of the minimum wage will be prohibited by law.
While the amount of its increase will be determined by two criteria. On the one hand, the rate of growth and improvement of the economy’s productivity, and on the other, inflation. But inflation, which hits lower incomes especially. And that means that the better the economy is doing, the better productivity is, the higher the first salary will be. But as prices go up, the fees will offset that price increase».
The minimum wage increase
At the same time, Kyriakos Mitsotakis added that “once again that the minimum wage was at 650 euros. In 2019, it is already at 830 euros. We will keep our commitment to reach 950 euros in 2027. It is an increase of almost 50%, while the average earnings from 1,036 euros our goal is and I believe we will achieve it, possibly even surpass it, to reach 1,500 euros in 2027, i.e. improved by 45%».
He added that “the new system comes to favor civil servants as well, with their introductory salary now in line with the basic salary in the country and will obviously drag up the three years as well, as well as all the benefits that are linked to the minimum wage. In other words, it is an important reform, which concerns all workers, centered, as I said, on the defining clause that wages will no longer be able to decrease but only increase. And it is a safeguard which is established for the first time in Greece, shielding the income against any threat of its limitation.
“Employer insurance contributions will be scaled back”
«And it is made possible, I believe, precisely because of the results of our overall economic policy. She is one prudent policywhich after closing the arc of judgment, now creates a certainty. An insurance for the next day, but at the same time taking care of the other necessary resource of production, entrepreneurship, which it relieves of burdens which means that in addition to the reduction of 50 and taxes that have been abolished, reduced, until 2025, the employer’s insurance contributions will have been scaled down by 5.4 percentage points. We will reach 6% by 2027. We will have substantially approached the European average and all this, this prudent policy of reducing taxes combined with the achievement of primary surpluses, is achieved at a time when in many European countries the deficits are increasingKyriakos Mitsotakis emphasized.
The changes of the Ministry of Finance
The Minister of Finance will also present the changes in the way and time of submitting tax returns, the prime minister stressed. “These will happen now steadily and without any deviation between March and July. We will finally put one up definitive end to the series of extensions, but also increasing the discounts for those who meet the deadlines, but also for the Government to be consistent with the provision of fines to those government officials who do not send all the necessary data to the AADE in time”.
The report of Kyriakos Mitsotakis on the floods in Spain
Kyriakos Mitsotakis also mentioned the deadly floods in Valencia. As he said “to begin with my support for the trying Spain which already has almost 100 victims and multi-billion damages from the recent devastating floods». He emphasized that the tragic event highlighted that no one is immune to the climate crisis as well as the role of civil protection, the proper operation of 112 and preventive evacuations. “And of course European solidarity, as well as joint actions in the Mediterranean, which is also, as scientists tell us, the focus of the climate crisisthe prime minister noted, among other things.
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