In a recent session of the Labour Advisory Body, the Minister of Labour kept his cards close to his chest, refraining from disclosing his intentions regarding the upcoming announcement of the increase in the national minimum wage for the next two years.
Minister Yiannis Panayiotou engaged once again with the perspectives of trade unions and employers’ associations during the session, exchanging views without unveiling the specifics of the new minimum.
However, he revealed that he held discussions last night with the President of the Republic and the Minister of Finance to inform them of his intentions. Today he plans to submit the draft decree for the final decision before the Cabinet. Post the Cabinet meeting, he will issue statements elucidating the government’s decision-making rationale.
Based on information emerging after yesterday’s consultations, it appears that the new national minimum wage will hover slightly above or below a thousand euros after six months of continuous employment with the same employer, as compared to the existing 940 euros.
Recognising the psychological weight of the thousand-euro threshold for both employers and employees, the Minister acknowledges the nuanced positions. While one side advocates for a wage slightly exceeding 1,000 euros, the opposing faction contends for a figure slightly below.
According to Phileleftheros, sources suggest that the three government-appointed technocrats on the Minimum Wage Review Committee lean towards a recommendation of setting the minimum wage between 987 and 1,004 euros, with a marginal 0.5% deviation.
A notable development from the recent Labour Advisory Body session is the government’s reluctance to revise the previous decree linking wage payments with an employee’s working hours at this juncture.
Panayiotou has conveyed to social partners that the intricacies of hourly payment for the minimum wage, including determining working hours for wage calculation, will be deliberated in subsequent discussions. Both sides harbour strong sentiments on the issue, each presenting vastly different arguments.
As part of a commitment to mutual respect within the framework of tripartite social cooperation, the Minister pledges to keep social partners informed of his final proposal before the Cabinet meeting.
The national minimum wage which only went into effect on January 1, 2023, is set at €940, however, for the first six months of employment it stands at €885.
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