The process for the automatically adjusting Greece’s minimum wage, following the ratification of the European Union directive, will be determined by four key criteria, according to a report by the scientific committee appointed by the Ministry of Labor. These criteria will shape the framework for future wage increases.
In preparation for the directive’s implementation, future increases in Greece’s minimum wage will be based on the following:
1. The purchasing power of wages, taking into account the cost of living.
2. The overall wage levels and distribution within the labor market.
3. The rate of wage growth across sectors.
4. The long-term productivity of the economy.
There will be a gradual transition to this new wage-setting system, which will be modeled on France’s approach.
It is also foreseen that the automatic adjustment of the legislated minimum wage and the legislated minimum daily wage may not take place if the economy is experiencing a recession.
Furthermore, the directive highlights the importance of boosting coverage of collective labor agreements, aiming for at least 80% of workers to be included. With coverage of collective labor agreements currently low in Greece, the directive requires the government to draft an action plan to strengthen inclusiveness, particularly at sectoral and cross sectoral levels.
This action plan will be updated every five years and will be reviewed by the European Commission to ensure compliance with EU standards.
