ECONOMY

Gov’t studies lower pay for teenagers

The Labor Ministry is examining the creation of various minimum wage levels depending on age and region from next year as a part of the government’s commitment to establish a new system to calculate wages for those who are entering the labor market, as agreed with Greece’s international creditors.

Among the plans under examination is having one minimum wage for those aged up to 18 years, another for 19-24-year-olds and another for those above that age. Today there are only two groups: those under 24 and those over.

A study regarding such changes was recently submitted to the leadership at the ministry and provides for several factors to determine the minimum salary. These include the rate of economic growth per geographical region, the unemployment rate in general and per sector, the extent of undeclared labor, and the ratio of the net disposable income to the poverty line.

The ministry’s study, based on a blueprint from the International Labor Organization and specific recommendations by the World Bank, notes that in conditions of high unemployment the minimum wage of young workers should amount to 75 percent of their older counterparts.