![Greece’s Minimum Wage Set to Rise Again as 50% of Private Sector Workers Face Poverty](https://www.ot.gr/wp-content/uploads/2022/06/ergazomenos.jpg)
Greece’s minimum wage is set for another upward revision as the current low levels leave over half of Greece’s private sector employees in poverty, says TA NEA.
Hikes to Greece’s Minimum Wage from 2025 Onwards
The Greek government is planning to increase Greece’s miniumum wage for both public sector and private sector employees between 4.5%-5% and will announce more details at this week’s annual Thessaloniki International Fair (TIF), says TA NEA.
The news comes on the heels of this year’s increases to minimum wage, which came into effect on April 1.
Driven by the ongoing impact of inflation on the average Greek household, Prime Minister Kyriakos Mitsotakis is expected to also detail how the regulatory framework around collective bargaining will change from the autumn.
TA NEA reveals that wage increases for the public sector are expected to come in between 4.5%-5%. The exact level of salary increases will depend on employees’ level of education and years of service.
For example, those starting-off with a seconday education will see their monthly salary increase from 850 to 892.5 euros. Meanwhile, those with a technical education will grow from 1,107 to 1,162 euros, and the higher education category will rise from 1,162 to 1,220 euros.
The private sector will likely see a hike of 4.5% to reach around 867.35 euros, with the government aiming for a new minimum wage of 950 euros per month for 2026-2027.
The Greek government is considering purchasing power, the general level of gross earnings, the rate of their increase, and labor productivity to establish what it considers to be the appropriate minimum wage in the private sector, says TA NEA.
Collective Bargaining in Greece
TA NEA also details that Greece’s Ministry of Labor will also proceed with changes to the country’s regulatory framework for collective bargaining through bilateral dialogue with social partners.
The Ministry has been working on this issue through meetings with the country’s largest union, the General Confederation of Greek Workers (GSEE), but the two bodies appear to be at a continued impass on how collective bargaining should be used to establish wages.
TA NEA sites that parties are emphasizing the need to implement a European directive for setting adequate minimum wages but the ministry does not want to return to the old ways of establishing minimum wages, which put the power in the hands of social partners. GSEE, however, is adament that the clocks are turned back.
At the same time, the leadership of the Ministry of Labor is considering interventions in the field of collective bargaining in an effort to further support the average wage in the private sector, not just the minimum wage, says TA NEA.
Additionally, in October or at the latest by November, the European directive for “decent” minimum wages is expected to be incorporated into national law, says TA NEA, and the Ministry of Labor is working with a special committee that has been established on the law to see how this can be achieved.
Half of Greece’s Employees Live in Poverty
In a stark reminder to why the announcement of Mitsotakis at TIF are important, TA NEA highlights that more than 50% of employees in the private sector are paid 800 euros net or less per month, which means that over half of private sector employees live in poverty.
Seventy percent of private sector employees are considered to be low-wage earners, and are being paid under 950 euros net per month.
Moreover, just 10% earn more than 1,450 euros and only 3.63% of employees are considered to be ‘very well-paid,’ earning more than 2,025 euros net.
Source: tovima.com
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