From June 1, the salaries of all employees are increased

To Dimitris Katsaganis

From June 1, all employees will receive an increase in their net salaries. This is due to the impending reduction of the contributions of the insured supplementary insurance by 0.25% from the aforementioned date.

This is an ordinance passed by the previous government in 2016, which was maintained by the current government and will be implemented -as expected- in a little over a month from today.

This reduction is part of a total reduction of 0.5% in the contributions in favor of the auxiliary. The remaining 0.25% will relate to employer contributions.

Thus the total contributions (insured and employer) for the auxiliary will fall to 6% from June 1 against 6.5% which will be until May 31, 2022.

As for the total package of employee contributions, they will fall from 36.6% (until May 31) to 36.1%.

More specifically, the contributions of the insured will rise to 13.95% from June 1, 2022 against 14.2% (on May 31, 2022), while the contributions of employers will fall to 22.15% against 22.4%.

The reduction of the contributions of the insured will lead to a corresponding increase of their net salaries.

For example, even an employee of a private company with a gross salary of 2000 euros.

In May 2022, due to contributions of 14.2%, he will receive a net salary of 1,716 euros.

In June 2022, due to the reduction of their contributions to 13.95%, the net salary will amount to 1,721 euros. It will therefore increase by 5 euros on a monthly basis and to 70 euros on an annual basis.

Of course, those with the minimum wage will also benefit from this small increase, who will see an increase of 7.5% from May 1, 2022, based on the government decision before Easter.

Due to the reduction of the contributions of the insured from June 1, the increase in the net salaries of those who are paid with the minimum wage, will be greater.

For example, even if you are paid the minimum wage with no previous service.

Until April 30, he receives a gross salary of 663 euros. Subtracting his contributions (14.2%), a net salary of 568.8 euros is obtained. From May 1, the gross minimum wage will rise to 713 euros.

Subtracting the insured’s contributions (14.2%), a net salary of 611.7 euros will result. It will therefore increase by 42.9 euros (7.5%). From June 1, 2022, however, the insured’s contributions will fall to 13.95%.

Thus the net minimum wage will amount to 613.5 euros. It will therefore increase by 1.8 euros or 0.3%. Thus, the total net increase between April 30-June 1, 2020 will amount to 44.7 euros or 7.8% (42.9 euros from May 1 and 1.8 euros from June 1, 2022).