In favor of the increase of the minimum wage the BoG and the scientific bodies-All the proposals

of Dimitris Katsaganis

An increase of up to 7% is proposed by the scientific bodies to the government in relation to the minimum wage in May 2022. According to the existing “regime”, these bodies (KEPE, IME-GSEVEE, INEMY-ESEE, IOBE, the INSETE, etc.) had until the beginning of the week to submit to the steering committee their evaluation report on the minimum wage.

More specifically, the positions of each body, according to its exclusive information Capital.gr are as follows:

ΤτΕ

In its conclusion, the BoG states that “in this context and given the significant inflationary pressures forecast for 2022, it is considered that there is room for a reasonable increase in the minimum wages and salaries within a range between 2.7% and 3, 4% from May 1, 2022, which, combined with an increase of 2% from January 1, 2022, will lead to an average increase in the minimum wage by 3.8-4.3% in 2022 and by 0.9- 1.1% in 2023.

ΚΕΠΕ

The KEPE states that “recent developments in inflation, which have led to a reduction in the minimum wage in terms of purchasing power, combined with the favorable macroeconomic environment at the moment, probably advocate and allow a further increase in the minimum wage. should be too high, as this is likely to place a greater burden on small businesses as well as businesses in certain sectors, given that the minimum wage is also should take into account the evolution of labor productivity in these sectors, as well as the 2% increase in force since the beginning of the year and recent and future tax and insurance cuts. employees and businesses. ”

ΕΙΕΑΔ

The EIEAD states that “the sum of the appropriate adjustment of the minimum wage for 2022 is, due to inflation (6.2%) and due to the share of GDP (2.8%), 9%. Given that the minimum wage has already increased by 2% from 1.1.2022, it is proposed that the minimum wage be increased (further) by 7% or by € 46.4, reaching € 709.4 ”.

ΙΝΕΜΥ -ΕΣΕΕ

“In any case, in the current fragile circumstances, INEMY-ESEE concludes that there should be a significant increase in the minimum wage and that the rate of inflation should be a key determinant of the formation,” according to INEMY-ESEE.

ΙΟΒΕ

According to IOBE, “the current level of the minimum wage is below recent trends in productivity and inflation, resulting in room for a slight increase in nominal level.”

INSET

INSETE states that “the very good growth prospects of the economy in 2022, after its significant recovery in 2021, justify an additional increase in the Minimum Wage by 3.0% to 4.0% in 2022 (a total of 5.0% to Provided that real GDP growth for the current year is between 4.9% and 5.7%, raising the overall minimum wage by 5% to 6% may lead to a slight deterioration competitiveness by 0.5% – 0.6%, but the country’s international competitiveness in 2022 will be improved by 2.33% to 2.42% compared to 2018. If growth expectations in 2022 deteriorate, then the Minimum Wage increase in 2022 should be lower.The choice of a Minimum Wage increase of more than 5% – 6% overall for 2022 is very likely to lead to a deterioration in international competitiveness, completely eliminating the improvement achieved in the last three years ”.

The next steps

Immediately after the sending of the reports, the memorandum will be forwarded and the documentation of each person consulted by the Coordination Committee to the other representatives of the social partners (BSE, GSEVEE, GSEE, etc.), with an invitation for oral consultation, will take place no later than March 15, 2022.

The transmission of all the memoranda and the documentation of the consultants as well as the report of the bodies to the Center for Planning and Economic Research (KEPE) for the preparation of a Draft Consultation Finding will take place no later than March 31, 2022.

The draft consultation conclusion will be completed by 15 April 2022 at the latest.

The suggestion of the Minister of Labor and Social Affairs to the Council of Ministers for the determination of the minimum wage of the employees and the minimum wage of the craftsmen will take place within the last fortnight of April 2022.

It is recalled that in his recent statements, the Prime Minister, Mr. Kyriakos Mitsotakis, has announced that the next increase in the minimum wage (after the 2% increase from January 1, 2022) will take effect from May 1. All the information so far contributes to the scenario of the increase of the minimum wage by 6%, so that the gross minimum wage reaches approximately 700 euros.