ECONOMY

Increase in minimum salary is left aside for now

The Labor Ministry’s new administration is preparing to take cautious steps in the context of broader planning for employment and enterprises, which will risk creating a shock in the domestic economy and employment market if the minimum salary is reinstated at 751 euros per month.

It is understood that Minister Panos Skourletis will not introduce a bill for the return of the minimum salary to the pre-2012 level just yet, as his priority is bringing about the return of collective negotiations and protective clauses against group layoffs.

The issue of the minimum salary will likely be left for a later date, following consultations with the social partners, and will be combined with interventions by other ministries and the redrafting of priorities. The aim is to introduce tax measures and other incentives that will support entrepreneurship and encourage hirings. This also includes the promotion of a new regulation regarding expired debts to social security funds and the tax authorities.

The business world is particularly concerned about a hike in the minimum salary, as most entrepreneurs say an average increase of 25.2 percent of monthly salary costs is unsustainable.