Minimum wage: The GSEE proposal with a target of 908 euros – 2024-07-19 12:01:43

THE GSEE filed today its proposal to form the minimum wage at 908 euros as estimated by the Confederation of Labor Institute.

Specifically, as stated in the proposal of the GSEE, “given the high inflation and the long-term and cumulative loss of purchasing power and based on the major objective of the unions, which is to ensure conditions in which no worker who is paid the minimum wage is below the poverty line and has a decent standard of living for himself and his family, the holistic proposal of the GSEE Labor Institute (INE/GSEE) for the minimum wage in 2024 is as follows:

• Immediate increase of the minimum wage to 908 euros per month and restoring its definition to the institution of the National General Collective Labor Agreement, as its role and function as a minimum general protection limit, with universal application to all workers, in the context of consultation between the social partners, is of critical importance for the acceptance of final determination of its amount, the strengthening of social and labor peace and, finally, the compliance of employers, which will allow to increase the effectiveness of its positive effects on the economy, society and democracy.
• Restoration of the protective regulations of individual and collective labor law (universality of validity of the terms of collective labor agreements, their full retroactivity, principle of favoring their “confluence” and extension of their validity).
• Removal of institutional and legislative obstacles to increase the coverage of workers by collective labor agreements (over 80% of employees).
• Strengthening of the Labor Inspectorate to effectively deal with workplace delinquency.
• Regulation and control of flexible and informal forms of work to protect minimum wages and working conditions’.

The proposals of the employers’ organizations

The small and medium-sized employers (GSBEE, ESEE) propose increases close to inflation (the increase should not fall short of 3.5% as they typically report, emphasizing the inflationary trends that do not show de-escalation at least in food and make the situation of low-wage households difficult. They also request measures for business support and changes in the tax regime.

ESEE: The National Confederation of Hellenic Commerce states in its memorandum that consumption has decreased in many sectors (clothing, furniture) while the new tax regime based on presumptions based on the minimum wage is hurting businesses that cannot afford a higher increase in the minimum wage.

In fact, he believes that the low-wage earners should be supported by the government with measures once morest punctuality. It also calls for the increase to be accompanied by a subsidy for employer contributions, to review the tax regime and to take measures to relieve businesses such as the complete abolition of the business tax.

GSEVEE: Professionals believe that the rate of increase should not fall short of inflation. On the other hand, a significant above-inflation increase in the minimum wage should be accompanied by supportive measures mainly for small and very small businesses. Examples of such measures might be the complete and unconditional abolition of the pretense fee, the establishment of an unrestricted business account and a bold new settlement of debts to the State. In addition, the new presumptive way of taxing sole proprietorships should be reviewed, as apart from its constitutionality being tested, its connection to the level of the minimum wage creates a permanent disincentive to further wage increases.