This is the fourth increase since 2019. Then it was 650 euros, that is, we have a 27% increase until today. A total of 18 benefits are increased and 800,000 beneficiaries are strengthened.
In particular, from April 1st, an increase in the minimum wage of 6.4% will come into effect, and it will be 830 euros gross (+50 euros) and the net will be 706 euros (+39 euros). As far as the minimum daily wage is concerned, this is set at 37 euros gross per day for artisans.
Regarding the three years from April 1, the minimum salaries are set as follows:
1 three years: 913 euros gross
2 three years: 996 euros gross
3 three-year terms: 1,079 euros gross
For married people, this increase will be 83 euros to 830.
Also, the unemployment benefit will increase from 479 euros to 509 euros.
It should be noted that the new minimum wage announced today entails the following benefits:
· Special maternity benefit: Minimum wage
· Parental leave allowance: Minimum wage
· End of unemployment benefit: 13 daily allowances
· Assistance for a three-month stay in the unemployment registers: 15 daily allowances
· Released Allowance: 15 daily allowances
· Temporary work: 20 daily allowances
· Insolvency of employer: Up to 3 salaries
· Builders’ season: 70% of the 37 minimum daily wages
· Seasonal sanders: 70% of the 50 minimum daily wages
· Seasonal for artists, theaters, tourism: 70% of the 25 minimum daily wages
· Other seasonal (forest workers – resin collectors, tobacco workers, potters – potters – brick makers and shipyard employees): 70% of the 35 minimum daily wages
· Self-employment benefit: Monthly unemployment benefit
· Compensation of EPA Students: 75% of Daily Salary
· Internship allowance (IEK DYPA): 80% of minimum salary
· Gaining work experience: Minimum wage
· Community benefit programs: Minimum daily wage
· Employment programs: Subsidy 50% – 90% of the minimum wage
· For working students participating in exams: 30 daily wages for undergraduates / 10 daily wages for postgraduates
THE Kyriakos Mitsotakiss announced his increase minimum wage.
“From 1/4/2024 those who are paid the minimum wage will receive 830 euros per month, we are talking about an increase of 50 euros in an amount that will drag upwards three years and many benefits” said the prime minister during his presentation Kyriakos Mitsotakis in the Council of Ministers.
Specifically, the “cleanly” they will amount to around 706 euros for an employee without children, and it will still drag on three years and allowances. Today, the salary is 780, i.e. 667 euros net. So, we will talk about a monthly salary increase to -about- 40 euros, said the prime minister.
Specifically, regarding the minimum wage, he said: “The minimum wage will reach 830 euros. It will entail three years and allowances. In 2019 the minimum wage was 650 euros. After the increases in the State and pensions, our programming commitments are implemented. Our goal in 2027 is for the average salary to be 1,500 euros and the minimum salary to be 950 euros. Today’s decision is well thought out and does not affect the economy’s resilience. It supports income and does not burden production. For the amount of the increase, we took into account the recommendations of scientific and social bodies. Wages are rising and unemployment has fallen to single digits after 15 years. No one can doubt that the course of the economy is moving in the right direction. Despite the difficulties, we remain committed to the battle of everyday life. We are raising dykes in price appreciation.”
At the beginning of his presentation, the Prime Minister referred to yesterday’s vote in Parliament, but mainly to the discussion that preceded it and as he said, answers were given. “Citizens had the opportunity to hear the truth about the tragedy in Tempe away from the distortion of political demagoguery. The opposition parties methodized the attack against the government. I believe that citizens perceive who is sincere also from the utterance of the speech. PASOK and SYRIZA will compete in toxicity. How ruthlessly they talked about fraud in the elections and how easily they embraced extra-institutional centers”.
He also said: “Important battles await us at the European level for immigration or farmers. They need MEPs with a strong national voice. In the same ballot box will be weighed the continuation of a course which, despite the difficulties, is moving us forward”.
“Welcome the increase in the minimum wage, but it should be combined with a reduction in non-wage costs.” This is what the president of the Athens Chamber of Commerce, Stavros Kafounis, said on the occasion of the government’s decision to raise the minimum wage.
Specifically, Mr. Kafounis stated: “Welcome any increase that improves the family income, especially of our economically weaker fellow citizens. After all, only in this way will the necessary increase in sluggish movement, which has been registered in the market recently, take place.
However, since social policy is not made on the backs of entrepreneurship, we expect this decision, which goes beyond our proposals, to be at least combined with the reduction of non-salary costs. In any other case, we will directly hurt the competitiveness of the economy and unfortunately we will be forced, as happened in the past, to take back the increase at multiple costs or at best to delay moving forward as we wish next year, in a further significant improvement of wages”.
The increase in the minimum wage maintains the “momentum of consumption” in the market, said the president of the Piraeus Chamber of Commerce and Industry, Vassilis Korkidis.
“The minimum wage, as set at 830 euros from April 1, 2024, is the result of maintaining a balance in strengthening family income against precision and maintaining the competitive framework of the economy, Mr. Korkidis said to APE-MPE.
“The government, consistent with the commitments it has made and taking advantage of the cyclical dynamics in the economy, is trying to give, through businesses, a new boost to disposable income. Consequently, the increase in the minimum wage will strengthen consumption in the market and correspondingly the economy”, added Mr. Korkidis.
Mr. Korkidis continued:
“The recipe for the development of our country has not changed, despite the crises, with consumption taking the lead over exports and investments. In particular, consumption still contributes a total of 88% of the country’s GDP, a percentage corresponding to that recorded in 2009.
The composition data of the GDP show that even in 2024 the government’s bet for growth of 2.9% will be determined by consumption, especially by households and secondarily by the State, which under the pressure of producing higher primary surpluses is obliged to move from 20% of 2023 below 18% in 2024, but also in the following years. Private consumption remained in 2023 at 68% of GDP, with this ratio maintained in the Greek economy for decades.
The annual formation of the GDP each year depends mainly on the disposable income of households, their financing, but also on the course of prices, besides of course tourism which also directly affects the index. The highest ratio of consumption to GDP in the last 30 years was recorded in 2020 at 93%, due to the great recession due to the pandemic. In an ever-improving business environment, balanced wage increases will continue to bring more and better-paying jobs to our country, provided a corresponding reduction in social security contributions follows. We must also not forget that productivity at work is an element that contributes to the competitiveness of businesses, thus justifying both the preservation of jobs and the increase of full employment.
What is certain is that the smaller, as well as larger, employers never approached the increases in wages of their employees fearfully, when they were announced. After all, the process of increasing the minimum wages and the 19 related benefits did not find objections from the smallest and largest employers in the country, since the companies “put their hands in their pockets” in order to cover, on the one hand, vacant jobs and, on the other hand, to keep country the necessary skills that are hard to find. The increase in the minimum wage in the private sector is a classic case where “someone eats, some drinks and some pay”.
But, in my opinion, in this particular case the small and medium-sized employers consider the monthly increase of 50 euros, 83 euros of the marriage allowance and 10% for every three years to be fair. In fact, according to Eurostat, Greece closed 2023 with the second lowest per capita income in terms of purchasing power at 67% of the EU average and is called upon in 2024 not only to stop diverging, but to start converging in terms of wages with the rest of Europe . Rightly so, the government decided the amount of the increase in the minimum wage, well the employees benefit and rightly we the employers pay, since this is the only way the disposable income will be strengthened in a three-year precision period, in order to maintain the “momentum of consumption” in the market”.
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