Labor Minister Domna Michailidou elaborated on the announcements made by Prime Minister Kyriakos Mitsotakis regarding the minimum wage.
As the prime minister announced earlier in his introductory speech, the new minimum wage from April 1 will rise to 830 euros, while its increase will entail three years and a series of benefits.
The daily wage increases to 37.07 euros.
The minimum wage has risen above the European average, to 27.75 as of 2019.
The cumulative increase in the minimum wage is greater than the increase in inflation since 2019.
A higher amount of benefits has entered the “household’s pocket” than what has been lost, Ms. Michailidou emphasized.
What factors were considered?
Factors taken into account for the new minimum wage increase were:
– The reduction of unemployment to 10.4% in January 2024
– The improvement of competitiveness in recent years
– The harmonization of this increase with the ranking of Greece in the EU in terms of GDP
– 5 times the growth rate of the economy compared to the European average.
On a 12-month basis, the new minimum wage is 968 euros per month. This is an increase of 27.7% compared to 2019.
The new minimum wage concerns 560,000 workers while this number is reduced by 26,000 people compared to a year ago (1/4/2023)
As Ms. Michailidou said, employees will receive three additional salaries per year compared to the 2019 minimum, or an additional 2,352 euros (+30.7%).
The annual net income with a minimum wage from 7,658 euros in 2019 increases to 10,010 euros in 2024.
What about three years – unemployment benefit
As of January 1st, the three-year terms have been unfrozen and this is a significant benefit for workers who are paid the minimum wage.
Thus, the salary with one three-year term is 913 euros, with two three-year terms at 996 euros and with three three-year terms at 1079 euros on a 14-month basis.
Also, the regular unemployment allowance is increased to 509 euros from 479 euros which was from April 2023.
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Source: OT
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