Increases in wages and benefits: who cares

Five wage increases are expected for workers in the public and private sectors, which automatically means an increase in a dozen benefits and benefits, as well as … fines and taxes.

From April of this year, a new increase is coming minimum wage in the private sector (from 5.5% to 8%), and from 01/01/2024 the minimum wage will also be raised for all civil servants. In addition, changes have already been made to the salaries of doctors in the national health system (ΕΣΥ) and members of the armed forces.

1. Minimum wage. From 01.04.2023 there will be a new increase in the minimum wage in the private sector. The recommendations of the Minister of Labor and Social Affairs to the Council of Ministers on the determination of the minimum wage for employees and the minimum daily wage for artisans will be made during the last two weeks of March 2023.

Three scaling scenarios to be considered:

• Increase by 5.5% so that the minimum wage reaches the pre-memorandum level of 751 euros.
• An increase of 6% to bring the base salary to the level of 756 euros.
• Increase by 7%-8%. In this case, the salary will increase by 50-57 euros and reach 763-770 euros.

The increase in the minimum wage will bring with it an increase in a number of benefits, such as unemployment, which currently stands at 438 euros.

2. “Τριετίες” (three-year-old). The issue of the “frozen three-year period” (payments for seniority) again comes to the fore, the history of which is associated with a decrease in unemployment in our country to a level below 10%. The past few months have seen a rapid de-escalation in the unemployment rate, highlighting the restoration of the “three-year salary” for everyone, not just those who had the required previous work experience before 2012.

This will mean a 30% salary increase for employees with the required length of service (3 three-year periods of service). Currently, only employees who have completed the required service (one, two or three years) by February 2012 receive “three-year rates”.

3. Updated rates for civil servants and officials. The new salary rates for civil servants from January 1, 2024, which will cost the budget an additional 900 million euros, will lead to changes in the pay scale and will affect the salaries of approximately 600,000-700,000 employees. The emphasis, in fact, will be placed on lower-paid employees with minimum wages. Salaries will also be increased for persons holding responsible positions, that is, specialists and general secretaries, general directors, managers, deputy heads and heads of departments. The minimum wage for an employee in primary education (kindergarten, nursery) is 780 euros, for secondary education – 858 euros, for technical education – 1037 euros and for higher education – 1092 euros. It is envisaged that the monthly increase in the base wage on the minimum wage scale will exceed 60 euros and could reach 100 euros per month.

4. Physicians in the National Health Service. Since January 1, the payroll of 20,000 NHS doctors has seen an increase in base salary, bonuses for working in a hospital and for a position of responsibility. The average salary increase is estimated at 10%. Increases will also affect persons holding responsible positions, that is, special and general secretaries, general directors, managers, deputy heads and heads of departments.

5. Armed forces. New tariff scales have been adopted with a budget of 50 million euros, involving an increase in wages for military personnel who are:

• on a long-term basis,
• on a short term basis.

A decision was made to pay special compensation for night work to the leadership of the armed forces and a special additional payment to the crews of warships. Also moving forward is the abolition of “sliding” taxation for Air Force pilots.

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