"The increase in the minimum wage to 780 euros per month from April 1 is imposed by the increased needs of employees and is based on the momentum that the economy has built up over the last four years. It is a significant and fair increase, which takes into account, on the one hand, the debt to support employees, especially in conditions of increased imported inflation, and on the other hand, the capacity of businesses," Labour and Social Affairs Minister Kostis Hatzidakis said on Friday. The minister was speaking at a press conference where he presented details of the government's decision to increase the minimum wage and daily wage to 780 euros and 34.84 euros, respectively, from April 1.
Hatzidakis underlined that the following factors were taken into account when determining the minimum wage: unemployment, which fell from 17.5% in 2019 to 10.8% in January, the improvement in competitiveness resulting from the increase in investments and exports, the recovery of the economy, which is expected to continue this year, the course of inflation, which, although decelerating, will remain at high levels and Greece's position in the European Union, based on GDP and the level of the minimum wage.
He noted, however, that unemployment does not fall automatically. "It fell from 17.5% to 10.8% because a series of political and economic conditions came together, namely government stability, seriousness and a positive climate in the economy. If these do not exist, unemployment will rise again," he stressed.
Hatzidakis pointed out that the raise will also lead to an increase in 19 benefits, including unemployment, maternity and others. The unemployment benefit will now reach 479 euros a month, he said.