The 2025 increase will be determined with the active involvement of the social partners through the establishment of a special advisory committee provided for in the minimum wage bill presented yesterday to the Cabinet by Labor Minister Niki Kerameos. With the new procedure (which will replace the individual proposals of the social partners and the final recommendation from the KEPE) it is estimated that the increase in the minimum wage will have an increased weight on the inflation for the economically weaker, which is greater than for the higher incomes.
Math formula
From 2028, the minimum wage is proposed to be determined through a mathematical formula that will take into account inflation, particularly for households in the bottom 20% of the income scale, as well as the increase in the productivity of the economy, based on objective indicators that will created by the Hellenic Statistical Authority (EL.STAT.).
The new mechanism that will come into force after the salary reaches 950 euros provides that there will be no reductions, even if the mathematical formula leads to reductions. In such a case the minimum wage will not increase but in no case will it decrease.
The changes to the minimum wage will also affect the average earnings of employees, for which the goal is to increase from the current 1,252 euros to 1,500 euros by the spring of 2027.
High goals
Prime Minister Kyriakos Mitsotakis even did not rule out the average salary exceeding 1,500 euros by 2027, based on the positive course of the economy. In fact, the latest figures from Ergani show that the average salary is around 1,300 euros.
Public
The new mechanism for the minimum wage will also be applied in the public sector, as Labor Minister Niki Kerameos said yesterday during a press conference, stressing that from 2025, there will be a single basic wage in the public and private sectors.
Today, for example, the starting salary in the public sector is 850 euros and in the private sector 830 euros. With the increase in 2025, which is estimated between 40 and 50 euros per month, the minimum wage will be 870-880 euros and correspondingly the introductory salary (for the HR category) in the State will rise to the same amount. “There is an explicit provision in the European directive that we are incorporating into the bill, that there should be a single salary for the public and private sector,” explained Mrs. Kerameos. Responding to a related question from “ET” on whether gifts will be reinstated in the basic salaries of civil servants, so that with the uniform minimum wage they will receive 14 salaries per year like private employees, the minister avoided taking a position, saying that this the issue concerns the Ministry of Finance.
Cumulative growth of 46.2% from 2019 to 2027
“The main priority of the government,” said Mrs. Kerameos, “is to increase the income of workers and increase their purchasing power, linking the level of wages with inflation and the economic development of the country. The Prime Minister, Kyriakos Mitsotakis, has pledged to increase the minimum wage to 950 euros by 2027, an amount that translates into a total increase of 46.2% from 2019, with a parallel reduction of social security contributions by 6 percentage points until 2027. In the direction this, incorporating the European directive 2022/2041, we propose a method of calculation based on transparent, objective criteria, which benefits and ensures the employees”.
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#Minimum #wage #system #increases #public #private #sectors
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