Filenews 22 December 2023 - by Adamos Adamou
A fait accompli is the increase of the national minimum wage to €1000 after six months of work with the same employer, as the relevant decree has already been published in the Official Journal, although it will enter into force on January 1, 2024.
The decision left neither the trade unions nor the employers' organizations satisfied. Employers had proposed a smaller increase than was finally decided, while unions demanded a bigger one, because of inflation and because the next adjustment of the national minimum wage will take place in two years.
In addition, the trade union movement expected the new decree to set an hourly minimum wage, but the issue was eventually referred for dialogue. There are also differences of opinion among the social partners on the minimum wage, as the unions wanted it to be increased at the same rate as the national minimum wage, with employers' organisations calling for it to remain virtually unadjusted.
The decree and the net
The new decree changes only paragraph 5, which refers to minimum wage amounts.
According to the new paragraph 5 "the minimum monthly salary paid to any employee in the Republic is set as of January 1, 2024 at €1,000 for full-time employment: It is understood that the minimum monthly salary that may be paid to employees who either before January 1, 2024 or after January 1, 2024 have not completed six (6) months of continuous employment with the same employer, from 1 January 2024 it is set at €900 for full-time employment, until the completion of six (6) months of continuous employment: It is further understood that the full-time working hours of employees in each economic activity are those in force at the time of the issuance of this Decree, based on Legislation, Decree, contract, custom or practice: It is further understood that, In the case of part-time employees, the minimum monthly wage is adjusted according to the hours worked in relation to the full-time work referred to above".
Based on the new amounts decided and now published, the employees who will be positively affected and estimated at 25,000. They will see increases in the new year, as the new minimum wage after six months of service will rise to €885 from €837 today, meaning there will be an increase of almost €50 in their earnings.
The minimum wage will rise net on January 1 to €797 from €788 today. The above amounts are calculated on the basis of mandatory deductions, i.e. contributions of 8.8% as of 1 January for the Social Security Fund (from 8.3% today) and 2.65% for the GHS.
