Following approval by cabinet on Monday, the Tsipras government will proceed with an 11% increase in the minimum wage and the abolition of the sub-minimum wage.
According to government sources Labour Minister Effie Achtsioglou could sign the pertinent ministerial decision as early as today.
The new minimum wage, set at 650 euros, will be effective as of February 1 and will be applied to workers of all ages, thus leading to the abolition of the “sub-minimum” wage which was currently in place for young people under 25 years old.
Addressing the cabinet, Prime Minister Alexis Tsipras said that 600,000 members of the Greek workforce will benefit from the two measures, while another 280,000 workers will be indirectly affected since the hike will result in the simultaneous increase of more than 20 different types of benefits linked with the minimum income.
Furthermore, Tsipras noted that increasing the minimum wage and doing away with the sub-minimum wage, along with restoring collective labour bargaining already in September, will have a positive impact on approximately 1 million workers.