Raising the minimum wage and unemployment benefits

The new increase in the minimum wage will “close the hole” in citizens’ finances and give “breathing space” to households hit by rising prices. It is expected that luck will smile not only on private and public sector employees, but also on the unemployed.

Shortly before the new support package, which is within the power of the country’s budget, is finally formed and fixed, it becomes clear that not only extraordinary subsidies will be used as a counterbalance to waves of inflation. Wage increases in both the private and public sectors are already under consideration by the government and information indicates that the increase will be up to 51 euros.

What is provided for private sector workers?

Immediate acceleration of minimum wage adjustment for private sector workers is already underway, so new increases will be made already during the first quarter of 2023. There is information that the combination of inflation growth rates makes it possible to increase it by at least 5.5%. In practice, this means that the minimum wage will return to 752 euros.

Based on these data, the new minimum wage is expected to be structured as follows:

Starting minimum wage: from 713 euros will rise to 752 euros (an increase of 39 euros).
Minimum with the first three-year term of operation: from 784 euros will increase to 827 euros (by 43 euros).
Minimum with 2 three-year periods of work: from 856 euros will increase to 903 euros (an increase of 47 euros).
Minimum with 3 three-year terms of service: from 927 euros to 978 euros (an increase of 51 euros).

However, the possibility of reducing insurance premiums remains open.

Expected that the new increase in the minimum wage will also benefit the unemployed. In this situation (when recalculated), the monthly unemployment benefit will increase from 407.25 euros to 461.82 euros.

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