Around 550,000 private sector employees are expected to see a pay rise from 1 April 2024.
The increase is due to its planned rise minimum wage to 830 euros gross, from 780 euros which is today. This increase corresponds to 50 euros or 6.4%.
For the amount of the increase, the suggestions of social and scientific bodies were taken into account, while the increase came earlier, April 1st, in order to benefit from this increase and all workers in tourism.
This is the fourth increase, with the result that the minimum wage is now increased by 27% compared to the 650 euros it was in 2019. As Prime Minister Kyriakos Mitsotakis stated in the Council of Ministers, the goal remains in 2027 for the average wage in Greece to be 1,500 euros and the minimum wage at 950 euros.
The new basic wage implies an increase in 18 benefits: From the unemployment and seasonal employment benefit, to the equivalent maternity benefit, which has already been extended to female farmers and freelancers.
For example, the unemployment benefit will rise to 509 euros compared to 479 euros which is up to this month (+30 euros).
In this way, an additional 800,000 beneficiaries are supported and the three-year programs, which have been “unfrozen” following 12 years, are also positively affected. This means up to 30% higher pay for thousands of workers with significant experience in the private sector.
In particular, with regard to the three years from April 1, the minimum salaries are as follows: 1 three years: 913 euros gross, 2 three years: 996 euros gross, 3 three years: 1,079 euros gross.
At the same time, the increased minimum wage from April will drag on proportionally until the Easter gift. Thus, an employee who without the increase in the minimum wage in April would have received an Easter Gift of 333 euros, will receive an Easter Gift increased by 6.4% (as much as the minimum wage increase) in the April leg, i.e. 337 euros.
The proposal to the Council of Ministers regarding the determination of the minimum wage and minimum daily wage for employees and artisans is made by the Minister of Labor and Social Security, Domna Michailidou.
According to the protothema, his statement Kyriakou Mitsotakis to the Council of Ministers for the minimum wage:
“From April 1, a few days from now, those who are paid the minimum wage will receive 830 euros per month. We are talking regarding an increase of 50 euros, an amount which, as we will hear later, will drag up three years and many benefits linked to the minimum wage.
I want to remind you that when we got down to business the minimum wage was 650 euros, in 2019. It has actually shown an increase of 27%.
So following the increases in the State, following the increases in pensions, another step is being implemented in the implementation of our programmatic commitments. With permanent measures – let me emphasize this, permanent measures – which concern millions of households and which will obviously apply even following the passage of the international precision, so that we can achieve the goal we have set: in 2027 the average salary in the country us to be 1,500 euros and the minimum wage 950 euros.
I want to emphasize that today’s decision is well thought out. It certainly relieves the workers, but without – this is something we discussed extensively with all the relevant Ministries – affecting, and this is very important, the endurance of the economy and the competitiveness of the businesses themselves.
It is a decision that supports income, but does not burden production costs so much, jeopardizing the reduction of unemployment. And of course, it is very important that this increase does not in any case lead to – and I believe it is moving to the level where this will not happen – new expectations regarding inflation from now on.
For the amount of the increase, we took into account suggestions from social and scientific bodies. While once more this year this increase comes earlier, April 1st, in order for all tourism workers to benefit from this increase.
It is the same prudent policy that we have followed in previous increases. The evidence, I think, confirms that we have found the right measure and the right balance: wages are rising, unemployment is down to single digits, following 15 years.
The growth of businesses, combined with the reduction, of course, of tax rates, shows that businesses can eventually absorb this additional cost. And it is no coincidence that the business climate in Greece shows the biggest and most significant improvement among 82 countries.
And of course, because I heard a debate in Parliament yesterday regarding GDP per capita, let us point out that in 2023 GDP per capita showed the largest increase among the 27 countries of the European Union. Obviously, we are not yet where we want to be, because we are carrying the burden of a ten-year crisis. But no one can doubt that the overall course of the economy and the course of income growth is moving in the right, positive direction.
As I said at the beginning – the Minister will tell us later – the new basic salary entails an increase in 18 more benefits: from the unemployment and seasonal employment allowance, to the maternity allowance of the same amount, which we should remember has already been extended and to female farmers and freelancers.
In this way, an additional 800,000 beneficiaries are supported and, of course, the three years are also positively affected, which, let’s remember, were “unfrozen” a year earlier than what we planned. They “thaw” following 12 years. This means up to 30% higher pay for thousands of workers with significant experience in the private sector.
So, despite the difficulties, we remain absolutely committed to the battle of everyday life, on two primary fronts: we are raising “banks” on price increases. We already have very positive results, we have seen them and we are seeing them in electricity, where the drop in prices I would say may have exceeded our own expectations, as a result of the greater transparency we imposed on the electricity market and more competition.
We have significant reductions in baby milk, in many consumer products, and obviously the Minister for Development knows that this is an ongoing battle until we reach a point of permanent deflation.
And of course, as I said, we support income with permanent increases, mainly supporting the weakest. At this point, moreover, our economic policy meets our social priorities. We increase the public wealth so that everyone has a share in it.”
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