According to an announcement by the Ministry of Labor and Social Affairs, from 01.04.2023 the minimum wage will increase from €713.00, which is currently €780.00, and the minimum daily wage from €31.85 to €34.84.

Based on the data of PS ERGANI, the workers who are paid the minimum wage are 585,000, by 60,000 less than in 2021, while again according to PS ERGANI the average wages in 2022 increased by 12.4% compared to 2019.

Practically, this means that from 01.04.2023 an unmarried employee, without prior service, who is employed on a full-time basis, will receive €780.00 gross and €666.85 net. Accordingly, in addition to net wages, the employer will have to pay monthly €282.05 in insurance contributions (€108.19 for the employee and €173.86 for the employer) and €4.96 in social security contributions. Therefore, the total monthly cost for the employer is €953.86.

Accordingly, a single, non-experienced wage earner for one month of full-time employment with 26 pay days will receive €905.84 gross earnings and €765.70 net. The employer, on the other hand, will be asked to pay €327.55 in insurance contributions (€125.64 for the employee and €201.91 for the employer) and €14.50 in social security contributions in addition to the employee's net earnings. So the total monthly payroll costs are €1,107.75.

At this point it is worth noting that the regime governing the three years does not change. The same legislation has been applied for eleven years. This status, based on the legislation, will change when unemployment is reduced to below 10%, due to memorandum obligations. Therefore, the announced increase in the minimum wage benefits even more the employees who had completed at least three years in their job on February 14, 2012. These employees will have additional earnings which can reach up to 30% depending with years of service. This means that the gross minimum wage for the workers in question can reach up to €1183.00 subject to conditions.

The increase in the minimum wage implies an increase in the unemployment benefit, which from April 1st is 479 euros per month (from 438 euros previously).

A series of aids and allowances based on the minimum wage are also being adjusted. These include, among others, the unemployment benefit for the self-employed, the new job programs, the special end of unemployment benefit, the benefit due to suspension of work, special seasonal benefits for employees in the tourism and food industry, builders, forest workers, etc., the special maternity allowance, the parental leave allowance, the unpaid wages due to the employer's insolvency, the availability allowance, the compensation of the students in the Vocational Apprenticeship Schools of DYPA, the compensation for the work experience programs, etc.

Karmiris Athanasios
Οικονομολόγος | HR and Payroll Manager