Greek PM Mitsotakis outlines package of measures for wages and pensions in the public and private sector

July 7, 2023
Written by E.Tsiliopoulos

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Greek PM Mitsotakis outlines package of measures for wages and pensions in the public and private sector

Salary increases in the public and private sectors. Pension increases of more than 3% in 2024. One-off support for those who have a personal difference in their pension. Significantly less burden on working pensioners. Exemption from participation in medicines for those pensioners who were previously beneficiaries of the supplementary fund EKAS. Reduction of employer contributions by one percentage point. And announcement of the goal to reduce unemployment to 8% at the end of the four years.

These are the immediate measures concerning the strengthening of the income of workers and pensioners - for the next four years - as described by the Prime Minister Mr. K. Mitsotakis during the reading of the program statements of the new government.

The measures

"These are permanent measures" noted the Prime Minister, while pointing out that some of them will be included in the first bill which will be brought to the Parliament within July. Analytically:

1. From 1.1.2024, the new salary scale for civil servants will be implemented, which will include horizontal increases for all employees, after 14 years in which civil servants' salaries either decreased or remained "frozen". At the same time, the new salary will include additional support for those employees who hold positions of responsibility. In addition, the family allowance of employees with children will be increased from 20 euros to 50 euros depending on the number of children.

2. Salaries in the private sector are increased with the aim of reaching - at the end of the four years - the average salary at 1,500 euros and the minimum salary at 950 euros. "The vehicle for this will be the growth of the economy," noted Mr. Mitsotakis, stressing that growth will force employers to pay higher wages to find the right staff. At the same time, he also referred to the role of collective labor agreements, noting that the number of those signed is greater and has reached 794.

3. Increase in pensions in 2024 by a rate that will exceed 3%.

4. One-time aid - at the end of the year - for those pensioners who do not receive the increase in their pensions because it is offset against the "personal difference" of the Katrougalos law.

5. Working pensioners will no longer lose 30% of their pension, as is the case today. Most likely from 1.1.2024, they will receive the entire pension and - instead - will suffer, as the prime minister said, "a small reduction of the legal remuneration they receive from their work.

6. Within four years, employer contributions will be reduced by one percentage point.

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