Latest developments in labor relations, April 2024

Tuesday, 09 April 2024

Increase of minimum wage as of 1 April 2024 

Law 5085/2024 provides, specifically for 2024, the deadlines for conducting the consultation foreseen in article 134 of the Individual Labor Code (Presidential Decree 80/2022), regarding the determination of the statutory minimum wage and daily wage for full-time employment, for employees and workers throughout the country, whose remuneration is not regulated by a collective labor agreement.

Following consultation with all social partners, the Minister of Labor and Social Security recommended to the Council of Ministers on 29 March 2024 that a) the statutory minimum wage for full-time employment for employees throughout the country, whose remuneration is not regulated by a collective labor agreement, be adjusted without age discrimination from €780.00 to €830.00; and (b) the statutory minimum daily wage for manual workers throughout the country from €34.84 to €37.07. The new minimum wage and the new minimum daily wage shall apply as of 1 April 2024.

Lastly, it should be noted that the increase in the minimum wage will also result in a corresponding increase in the area of allowances, benefits and subsidized schemes.

Digital work-card: Extension of the date of imposition of penalties for non-compliance

According to Ministerial Decision 113169/2023 issued on 1 January 2024, the implementation of the digital work card system was introduced for companies whose main activity is in the industrial and retail sector. These undertakings shall be obliged to establish and activate a digital work card system for all employees with a contract or a dependent employment relationship who are physically present at the undertaking, including employees who are employed in the above-mentioned undertakings on an employee borrowing basis. Enterprises operating in the energy, petroleum products and mining sectors are excluded from the above-mentioned obligation.

Notwithstanding the above, pursuant to Ministerial Decision 24595/2024 of 29 March 2024, administrative sanctions for failure to implement the digital work card system, as resulting from Ministerial Decision No. 80016/31-08-2022, will be imposed as of 1 July 2024, instead of: i) 1 April 2024 for enterprises in the industrial sector; ii) 2 May 2024 for enterprises in the retail sector; and, lastly iii) 13 May 2024 for both the above sectors when their workforce consists of up to 10 employees. Therefore, the obligation mentioned for businesses in the industrial and retail trade sectors practically commences on 1 July 2024.

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