Increase minimal salarywithin the established inflation for 2023, that is, from 5% to 6%, but under strictly necessary conditions, such as reducing non-wage spending by 0.6 percentage points at once and by an additional 3 points in the period 2024-2025, assumes BFB. In the memorandum he submitted, which is now in the Center for Planning and Economic Research (KEPE), along with the memorandums of all the bodies and institutions involved in the process, According to “K”The BSE lists as a necessary task the increase in the actual disposable income of employees, without endangering, but, on the contrary, strengthening the competitiveness of enterprises.

The memo highlights the fact that high labor taxes and social security contributions consistently above the OECD average continue to reduce workers’ real disposable income, increase non-wage costs and discourage formal work. And it is reported that the state’s final proposal after taking into account social, economic and development factors should be accompanied by a reduction in social security contributions immediately, by 0.60 percentage points, in order to fulfill the government’s commitment to reduce by 5 points in government 4 years, and also with a new , a gradual reduction in contributions by an additional 3 units in 2024-2025. Thus, after all, Greece will begin to approach the average among OECD countries.

The position of the BSE is known, as stated in the memorandum, that an increase in the gross minimum wage by 5% or 6%, combined with a decrease in employee contributions, can lead to a significantly larger increase in net wages. those earning the minimum wage. For example, if the minimum wage is increased by 5% from €713 to €748.5 and contributions are reduced by 2 percentage points, the actual increase would be 7.4% as an employee’s net earnings rise to €660 from €614 in the current month. . If the contribution is reduced by 3 percentage points, then the net minimum wage is 667 euros, increased by 8.7%.

Accordingly, if the increase is in the order of 6% and social security contributions are reduced by 3 percentage points, the actual increase in the worker’s pocket will be in the order of 9.7%, as the new gross minimum wage will be 755.8 euros. , and the net salary will be 674 euros. The BSE notes that reducing employee taxation will allow companies to increase their net remuneration without undue strain on their competitiveness, while supporting companies to encourage productive investment will lead to further wage increases and the creation of new and well-paid jobs. Finally, he advocates continued support for vulnerable households as long as there is an inflationary surge in food, fuel and energy prices.

On Monday, February 20, KEPE will start writing its final proposal – a recommendation, which, of course, is not binding on the government, and before March 10, Labor Minister Kostis Hatzidakis must announce his final decision.