ECONOMY

Cabinet to discuss minimum salary next week

cabinet-to-discuss-minimum-salary-next-week

The cabinet will be meeting next Monday, July 26, to discuss the issue of a minimum wage, according to sources.

Currently, the minimum salary in the private sector is set at 650 euros per month – with the nominal salary at €758 euros, if the Christmas and Easter bonuses are included – which is an average salary in the European Union, or in 11th place based on nominal salary and the 13th, based on purchasing power parities.

The subject will be introduced at a meeting being hosted by the Labor Ministry, which will include three parameters: Views of the social partners and scientific agencies, fiscal flexibility and the needs of workers receiving minimum wage (particularly after the coronavirus pandemic).

Most industrial and business associations, the Bank of Greece, the Foundation for Economic and Industrial Research (IOBE) and Center of Planning and Economic Research (KEPE) support a freeze on the minimum wage, while the private sector labor federation (GSEE) is calling for an immediate increase to €751 and another to €809 as of mid-2022.