Minimum wage: What will the new mechanism for determining

Changes in the definition mechanism present today (31.10. 24) the Minister for Labour; Government policy on wages (including minimum wage), according to Mrs. Cherry, it has two sides: Increasing the minimum wage and reducing non-wage costs. The total increase in the minimum wage will exceed 42% in 2019 – 2027, while the average wage from 1,036 euros 2019 has reached 1252 euros today, 45% when 1500 euros As regards non-wage costs, the contributions have already been reduced by 4.4 points. Another 1 unit reduction has been announced in 2025 and 0.5 unit will be reduced in 2027. Overall, contributions by 2027 will have dropped nearly 6 points. That is how we reach the European average, Mrs Kerameos said. See live announcements for minimum wage Directive 2022/41 which Greece must incorporate – according to Mrs Kerameos – has two axes: 1. Clear criteria for determining and updating the Law on the Minimum and Mechanism of Automatic 2. Draft an action plan for more favourable conditions for strengthening collective bargaining. Extensive consultations have been held with social partners so far and will continue, Mrs Kerameos stressed. We also expect results from social workers, completed by the Minister of Labour. In relation to the upcoming changes in the minimum wage, Mrs. Kerameos 1. The minimum wage cannot be reduced 2. From 2027 an automatic mechanism for raising the minimum wage will be introduced. The rate of change in the minimum wage will depend on: Inflation (in terms of 20% of households for the lowest social category). The productivity of the Greek economy as expressed by the change in the wage index. 3. In the event of an economic crisis, provision is made for a derogation from the formula, which will not mean a reduction in the minimum wage, in any case. 4. The application of the minimum wage to civil servants. The social partners – whose role is enhanced – are set up as an instrument, i.e. the Consultation Committee on the minimum wage, starting in 2025. There will be public consultation on the bill and there will be discussion with opposition parties.