The 4 innovations introduced by the new method of fixing the minimum wage

The four innovations of the new mechanism for the , which will be presented to the Cabinet on Thursday, have been highlighted today (29.10.2024) in an interview with the Minister for Labour and Social Security. According to the Prime Minister’s announcements, by 2027 the minimum wage will be 950 euros said Niki He also added that ‘what we will present to the Cabinet is how much and how the minimum wage will increase after 2027’, stressing that it is expressly provided for in the relevant European directive that there may only be an increase and not a reduction. As Mrs Kerameos pointed out, the minimum wage will be determined on the basis of a formula which takes into account two economic indicators. The first is accuracy, inflation and even inflation for 20% of the lowest income category and the second is the productivity of the Greek economy. “The higher the prices go up and the lower the wage, the better the Greek economy goes the lower the wage,” said the minister who then referred to the four innovations of the system. The first innovation concerns security as it is explicitly provided that there can be no reduction in the minimum wage. The second concerns the connection of the minimum wage to the real elements of the Greek economy. The third innovation lies in the fact that for the definition of the minimum wage, objective elements of ELSTAT will be taken into account and the fourth is the fact that for the first time it will also concern public servants and this implies an increase, to some extent, for them. The Minister noted that the first phase of consultation with the social partners and ELSTAT on the subject has been completed, but there is an open procedure for exchanging comments and proposals. “The dialogue will continue until the last hour when the bill will be debated in Parliament,” the minister said, stressing that it will also start dialogue with the parties on the bill. At the same time, the Minister stressed the importance of the Career Days events held in Greece and for the first time abroad. “On 30 November we go to the Netherlands and there we organize career days abroad, where Greek companies will come looking for qualified staff, well paid staff and at the same time Greek fellow citizens who live not only in the Netherlands, but also in countries in the wider region who want to return to Greece but have not found the right professional opportunity.” In addition, the Minister noted that two other events will take place, one in Düsseldorf, Germany and one in spring in London, England. In response to a reporter’s question about the incentives that Greeks abroad have to return to Greece, Mrs Kerameos said “there are also economic incentives, i.e. there is an initiative by the Ministry of Finance under which, if you return after years of absence abroad, the Greek state guarantees you that for 7 years you will have a fixed income tax rate reduced by 50%.” Referring to the retirement solidarity contribution, he stressed that due to the increases given over the last two years there have been some cases in which pensioners went to the next step of the pensioner solidarity contribution and instead seeing an increase saw a decline. “We bring a regulation to Parliament along with Mr. Panos Tsakloglou to solve this issue. How do we solve this? When pensions are increased each year, the thresholds of each stage of the ESS will be increased accordingly. So that way no one will see a reduction and get the full increase the state gives. The threshold will depend on the increase, for which we await the November figures.” In a question concerning the personal difference between pensioners, Mrs Kerameos replied that those who receive a pension up to 1600 euros and maintain a personal difference will receive an allowance this year, close to Christmas, ranging between 100 and 200 euros, depending on the amount of pension they receive.