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The monthly minimum wage has been set at €940 and will be implemented at the start of the new year, Labour Minister Kyriacos Koushos announced.
The “historic” move came after Wednesday’s cabinet meeting, while Koushos explained that for the first six months of employment the wage will be at least €885 – later rising to the minimum threshold of €940. That likely means seasonal workers in the tourism industry, for example, will not be eligible for the higher amount.
He said the delay in implementation, from January 1, is to give the economy time to prepare and adjust.
It has been reported that the late Labour Minister Zeta Emilianidou was aiming for €1,000.
But in praising the move, Koushos said that about 45,000 people are set to benefit from the implementation of the minimum wage.
However – there are significant sectors of the economy whose workers will not be covered by the minimum wage, most notably domestic workers, those in shipping and those in farming and livestock handling. Also excluded are workers receiving training for a degree or a professional qualification.
He also explained that those who receive more favourable terms through a contract will be excluded from this decree.
Further caveats are that when an employer provides food and or accommodation, it will be possible for 15 per cent to be deducted for the former and ten per cent for the latter. The employer will have 45 days to waive this part of the agreement.
Elsewhere, seasonal workers under the age of 18 will be subject to a 25 per cent reduction – most likely from the €885 amount, as they will not have worked for six months with the same employer.
Koushos praised all those involved in the process who hammered out the agreement, saying that they proved themselves to be responsible and serious.
He acknowledged that not everyone will be pleased by the announcement but that it was the best possible compromise.
Earlier on Wednesday, the minister presented his final proposal on the minimum wage to social partners as last attempt to find common ground between the parties, explaining this effort was to reconcile the views but the final decision was up to the government.
The unions had previously said that in talks with Emilianidou they had been told the minimum wage would be applied gradually and using European methodology, and apply to a 40-hour working week, with a minimum wage of around €1,000.
Former Health Minister Constantinos Ioannou praised the agreement as a “historic day for the welfare state” which honours the legacy of Emilianidou.
There had been high hopes amongst the unions and many others in the labour force that Emilianidou was to oversee and implement the minimum wage, but her death in June meant the mantle was passed on to Koushos.
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Dave
Moira And Dave
“I know that you believe you understand what you think I said, but I'm not sure you realize that what you heard is not what I meant.”
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