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G. Kavvathas: The increase of the minimum wage is positive, but measures are needed to strengthen companies

The president of GSEVEE, G. Kavvathas, characterizes the announcement of the government for an increase of the minimum wage by 50 euros to 713 euros, stressing, however, that the liquidity of the companies that will bear an additional cost will have to be strengthened, so that eventually increase to be beneficial for both households and businesses.

In particular, on the occasion of the announcement of the increase of the minimum wage by the Prime Minister Kyriakos Mitsotakis, Mr. Kavvathas stated:

“Any intervention to boost the disposable income of workers-consumers is positive for the market. Therefore, the Government’s decision to speed up the increase of the minimum wage from 50 euros from 663 to 713 euros to 650,000 workers from May 1, will relieve households. and will enhance their purchasing power.

However, we must not forget that in a difficult period for companies, they bear an additional cost, at the same time that the decision to increase the minimum wage is budget neutral.

Obviously, and given that the Government has room for intervention, we expect in the near future to proceed with support measures to reduce energy costs and VAT, to strengthen business liquidity, but also to further reduce employer contributions, so that the market to be able to cope and ultimately increase the minimum wage to benefit both households and businesses.

“Otherwise the risk of undeclared work and / or passing on costs to the consumer is seen as a last resort for business survival.”

Source: Capital

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