Minimum salary raise set to come earlier
The new, increased minimum salary is expected to be implemented this year from April 1, earlier than planned, with the new minister of labor and social security, Domna Michailidou, announcing the filing of an amendment to speed up the process “so that the new increase can be taken into account for the tourism season.”
According to sources, the minister, who has already started formal meetings with the representatives of the social partners, will seek to shorten the consultation process.
Based on the estimates, the minimum wage will move around +5%, as the rate of increase will have to incorporate the current inflation but also a part of the increase in productivity. In practice this is estimated to lead to a minimum monthly salary of 820-830 euros, up from €780 today, leaving an extra €120-130 by 2027 to meet the government’s minimum wage target of €950.
Therefore, in the next few days an amendment is expected to be submitted so that the envisaged ministerial decision will be signed by Michailidou by the end of March and the new minimum salary will become effective from April 1.
Already, within 2024, the first raise in 14 years for civil servants, as well as the “unfreezing” of the three-year salary raise rule for approximately 100,000 workers in the private sector (who are paid the minimum salary) will by the end of the year determine the real rate of wage growth.
Especially for the three-year rule, based on the current law, thousands of employees will see their salaries increase by 10% for each three years of service, and up to 30% for nine years of service or more.
Of course, although the application of the three-year law is not voluntary, its reinstatement does not have retroactivity for the period from February 14, 2012 to December 31, 2023.
Therefore, in practice, the increase will affect approximately 100,000 workers who have founded or will establish a right to a 10% increase in 2024. For new workers, the first raises will come from 2027 onward.
Moreover, by 2027, according to the pledge of Prime Minister Kyriakos Mitsotakis, the average salary should increase to €1,500 per month.