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Minimum wage increases in 2023

Tuesday, January 31, 2023

Minimum wage increases in 2023

On 19/01/2023, Law 5013/2023 (A' 12) on "Multi-level Governance, risk management in the public sector and other provisions" was published. By virtue of article 39 thereof, it establishes a narrower timetable for the determination of the minimum wage for the year 2023, for the new, increased minimum wage to take effect on 01/04/2023, instead of on 01/05/2023, as originally envisaged.

The rate of the minimum wage increase is expected to range from 5.5% (most likely scenario) to 9.5%, with its main objective being to restore the national minimum wage to pre-2011 levels. Depending on the rate of increase, the gross minimum wage is expected to be set between €713.00 to €752.00-€781.00, thus also leading to a subsequent increase in various benefits and allowances that depend upon minimum wage (e.g., unemployment allowance, salary thresholds above which an employee is considered "managerial", etc.).

A question arises concerning increments in the minimum wage due to seniority. Despite the scenarios on the abolition of the applicable ceiling to the number of years of service counting for reasons of seniority (and hence salary increase), since it does not look like unemployment rates will fall below 10% this year, the current increments due to seniority will continue to apply, unless new reforms come into play regarding seniority accumulated until 14/2/2012.