The new minimum wage comes into effect from 1 April 2024 and rises to €830 from €650 in 2019 and brings with it three years of work and many benefits linked to it.
According to the Ministry of Labor and Social Security, the decision to increase the minimum wage boosts the income of workers, but without affecting the strength of the economy and the competitiveness of the companies themselves.
The goal is, by the end of the four-year period, for the minimum wage to reach 950 euros and the average wage to rise to 1,500 euros from 1,251 euros, which was in 2023.
As the Minister of Labor and Social Security, Domna Michailidou, emphasized in yesterday’s (29.3.2024) press conference, the minimum wage is increasing, because our economy allows it and because our produced national wealth must be distributed in terms of justice.
It is also important that workers in tourism will also benefit, as the new minimum wage will be implemented, before the start of the tourist season and, specifically, from April 1.
The evolution of the minimum wage
As mentioned at the press conference yesterday, the four increases in the minimum wage more than offset the increase in inflation. Specifically, since 2019, the minimum wage has increased cumulatively by 27.7%, while cumulative inflation in the period 2019-2023 was 16.6%. Now, Greece is in 11th place among the 22 EU member states that have a legislated minimum wage.
In addition, based on the data of the Ministry of Labor, the workers who are paid the minimum wage are 559,274, that is, 25,726 less than in 2022 and 85,726 less than in 2021. Therefore, more citizens, in recent years, receive a salary higher than bottom.
In particular, from 650 euros, which was the minimum wage in 2019, it increased to 663 euros in January 2022, to 713 euros in May 2022, to 780 euros in April 2023 and to 830 euros from April 2024.
From 2019 onwards, the minimum wage, with 14 payments, has increased by 180 euros, i.e. an increase of 27.7%. On a twelve-month basis, as Eurostat calculates, the minimum wage, with the new increase, stands at 968.33 euros. At the same time, the minimum daily wage increases to 37.07 euros from April 2024 from 29.04 euros, which was in February 2019.
The three years
As the Ministry of Labor points out, long-term workers who are paid the minimum wage also have a significant benefit, as larger increases arise with the “unfreezing” of the three years from January 1, 2024.
With a three-year period (3-6 years), the minimum wage increases to 913 euros on a 14-month basis and to 1,065 euros on a 12-month basis. With two three-year terms (6-9 years), the minimum salary is 996 euros on a 14-month basis and 1,162 euros on a 12-month basis. With three three-year terms (9+ years), the minimum wage increases to 1,079 euros on a 14-month basis and to 1,259 euros on a 12-month basis.
Allowances are increasing
With the new increase in the minimum wage, the unemployment benefit also increases. The regular unemployment benefit, which corresponds to 55% of the minimum wage, increases to 509.71 euros per month, 110 euros higher than in 2019.
Also, five allowances and programs that are positively affected by the increase in the minimum wage are the special maternity benefit for employees and self-employed from 780 euros to 830 euros for nine months, the special assistance of vulnerable groups, which is paid once and amounts to 764 euros, the special seasonal aid to seasonal workers, the programs for new jobs, as well as the pre-work programs.
At the same time, 13 categories of benefits and programs related to the minimum wage are as follows:
- Regular unemployment benefit.
- Aids/benefits dependent on the regular unemployment benefit and on the daily wage of the unskilled worker (special aid for vulnerable groups, special seasonal aid, work allowance).
- Self-employed benefits (unemployment benefit for self-employed and independently employed-insured persons of the e-EFKA, OAEE section, ETAP-MME section, unemployment assistance for self-employed and independently employed-insured persons of the e-EFKA, ETAA section (TSMEDE sector, TSAU , legal insurance).
- Other benefits that depend on the daily wage of the unskilled worker (special maternity benefit for employees, special maternity benefit for self-employed persons, supplementary maternity benefit, parental leave allowance, unpaid wages due to the employer’s insolvency, availability benefit).
- Compensation for students of Vocational Schools (EPA.S) Apprenticeship.
- EKEK AmaA Thessaloniki allowance.
- Internship IEK DYPA.
- Payment of salaries to pupils-students-students who abstain from their work for their participation in the written exams of the school they attend (Law 1346/1983).
- Work experience programs (pre-work).
- Work experience programs.
- Grant program of private companies for internships of ATEI-ASPAITE students.
- Programs of a public interest nature.
- New job programs.
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