Filenews 29 December 2022 - by Adamos Adamou
Increases in their salaries will be seen in the new year by thousands of workers, who today receive a salary of less than €800, since in three days from today, and specifically on New Year's Day, the decree by which a national minimum wage is set for the first time in our country comes into force. That is, a minimum monthly wage for all employees in the Republic, with some exceptions.
This salary, on the basis of the decree issued from 2 September, is set from 1 January 2023 at €940, gross, for full-time employment. The decree also clarifies that the minimum monthly wage that may be paid to employees, who either before January 1, 2023, or after January 1, 2023, have not completed six months of continuous employment with the same employer, from January 1, 2023 is set at €885 for full-time employment, until the completion of six months of continuous employment.
In fact, from next Sunday the minimum wage for recruitment will be €885 gross and €940 for those who have completed six months with the same employer. Net, the above amounts, that is, after the legal deductions, as we wrote again, are limited to €940 for full-time employment to €837 and €885 to €788.
In the decree and in the point where the minimum wage is mentioned, it is clarified that "the full-time working hours of employees in any economic activity are those in force at the time of the issuance of this Decree (i.e. on September 2), based on legislation, decree, contract, custom or practice" and that "it is further understood that, in the case of part-time employees, The minimum monthly wage shall be adjusted in proportion to the hours worked in relation to the full-time period referred to above'.
Many questions
However, the non-performance of the national minimum wage on an hourly basis and the non-inclusion in the decree of the working hours covered by it, caused not only the reaction of the guilds, which, as we know, did not give their consent to the decree, but also a series of questions from companies, which continue to this day. Speaking to "F", the president of the Cyprus Payroll Management Association (CPMA) - Theodoros Mantis, recently receives dozens of phone calls and e-mails from members of the company, and not only, about how to implement the decree, in combination with working hours. There is, he said, no understanding regarding the issue of hours and the Association is trying to solve the questions, which have been enough lately.
The gap identified by the trade unions, which is why they reacted to the issuance of the decree, arises because the working hours in each company differ and can range from 37 hours per week to 48 hours, the maximum allowed by law. However, as we have written before, de facto the minimum wage will be the same for both 38 hours of work and 48 hours. Also, in proportion to the full-time working hours of each business, employers will be asked to set the hourly wage of each employee. In order not to exploit the issue by employers, it is expected that the Inspection Service of the Ministry of Labor will carry out a series of checks during the first period of implementation of the decree, without excluding, as we are informed, even the issuance of a relevant announcement, with instructions and recommendations.
LABELLING
Need for clarification
The questions and queries that also exist among employers about the implementation of the national minimum wage confirm the need for clarifications on the part of the Ministry of Labour. Clarifications delayed, as the decree has been issued since September. The positive thing, however, is that the results of the decree will actually be seen at the end of January, when the salary of the first month of the year will be paid. Therefore, there is still room for clarifying what is stated in the decree and for answering the questions, which mainly concern those who pay and those who are paid by the hour. Especially those who are paid hourly and are not full-time staff.
