Of Dimitris Katsaganis
“Net” increase even by 56 euros / month results from the increase of the minimum wage by 7.5% which announced yesterday the Prime Minister, Mr. Kyriakos Mitsotakis for the 1st of May 2022.
This increase will apply to private sector employees, who are paid the minimum wage and have been granted a three-year allowance in February 2012 with more than nine years of service. Specifically, the gross salary of this category of paid with the minimum wage will amount to 926 euros.
However, subtracting the contributions of the insured (14.2% of the gross salary), a net amount is obtained, which goes into the “pocket” of 794 euros. This salary will be received by these employees for May 2022 ( that is, they will pay him in the last working day of May 2022).
Their gross salary until this month – April – amounts to 861 euros gross and 738 euros net (minus the contributions of the insured).
Therefore, subtracting their new – from May – minimum wage, ie 794 euros per year until the current month – April – their salary of 738 euros, results in a “net” increase of 56 euros. the increase will amount to 784 euros (14 X 56 euros).
In other words, from the 7.5% increase that will take effect from May 2022, another salary will arise on an annual basis, a “15th salary”, as stated by the Prime Minister himself, Mr. Mitsotakis, that is, beyond the 12 monthly plus the Easter gift-leave allowance (13th salary) and the Christmas gift (14th salary).
The same proportion (ie as a percentage of the salary) benefit applies to employees who are paid lower wages, due to less guaranteed – since 2012 – seniority.
According to the table provided by the Ministry of Labor, the gross (ie taking into account the contributions of the insured) minimum wages are formed from May 1 as follows:
For employees who did not have a previous service allowance in 2012 (either with 3-6 years, or with 6-9, or with more than 9 years), their gross salary will rise from May 2022 to 713 euros against 663 euros which is up to the current month.
Their net salary will amount to 611 euros against 568 euros. That is, it will increase by 43 euros / month. As for the cost of insurance contributions, it will rise from May to 260 euros against 242 euros, ie 18 euros / month.
The insurance cost together with the salary will rise in May 2022 to 871 euros compared to 810 euros in May 2022.
As the regular unemployment benefit is calculated on the basis of the minimum wage, this will increase as well as the minimum wage, ie by 7.5%. Thus, an unemployed person with a gross salary of over € 355.45, who during the current month, received a regular unemployment benefit of 407 euros in April, will receive an unemployment benefit of 437 euros in May.
The salary of those unemployed who are paid the minimum wage will also increase by 7.4%. Thus, the 25,000 unemployed, who will be included in the community service program in the immediate future, will be paid 611 euros net and not 568 euros.
Source: Capital
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