Minimum wage Greece and other new developments in labour relations

Greece has introduced new regulations concerning employment relationships, some of which have already come into force or will come into force later this year. The measures include setting the minimum wage for 2024 and the introduction of a digital work card. The labour lawyers at Ecovis know what companies must prepare for.

Setting the minimum wage for 2024

On 31 January 2024, a bill was submitted to parliament that includes the determination of the minimum wage for 2024. More specifically, and especially for 2024, deadlines have been established for conducting the consultation outlined in Article 134 of the Code of Individual Labour Law (Presidential Decree 80/2022). These deadlines concern setting the value of the statutory minimum wage and daily wage.

Following consultation with all social partners, the Minister of Labour and Social Security recommended to the Council of Ministers on 29 March 2024 that

• the statutory minimum wage for full-time employment for employees nationwide whose remuneration is not regulated by a collective labour agreement be adjusted without age discrimination from EUR 780 to EUR 830 and
• the statutory minimum daily wage for manual workers across the country from EUR 34.84 to EUR 37.07.

The new minimum wage and the new minimum daily wage apply from 1 April 2024. It should also be noted that the increase in the minimum wage will also result in a corresponding increase in allowances, benefits and subsidised schemes.

We support you in implementing the new employment law regulations.

Grace Ch. Katsoulis LL.M., Partner, BALLAS PELECANOS LAW, Athens, Greece

Implementation of the digital work card system for additional business types

According to Ministerial Decision 113169/2023, as of 1 January 2024, the compulsory use of the digital work card system is extended to include companies mainly active in industry and retail. These businesses will be obliged to establish and implement a digital work card system for all employees with a contract or a dependent employment relationship who are physically present at the business, including those working on an employee borrowing basis. Enterprises operating in the energy, petroleum, and mining sectors are exempt from this obligation. Failure to implement the digital work card system will result in administrative penalties, as outlined in Ministerial Decision no. 80016/31-08-2022.

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

Pursuant to Ministerial Decision 24595/2024 of 29 March 2024, administrative sanctions for failure to implement the digital work card system resulting from Ministerial Decision no. 80016/31-08-2022 will be imposed as of 1 July 2024, instead of:

• 1 April 2024 for enterprises in the industrial sector
• 2 May 2024 for enterprises in the retail sector
• 13 May 2024 for both the above sectors when their workforce consists of up to 10 employees

In  practice this means that the digital work card obligation for businesses in the industrial and retail trade sectors commences on 1 July 2024.

Reduction of the salary threshold for managerial employees

From 1 March 2024, there will be additional changes concerning the classification of managerial employees, along with adjustments to their salary thresholds. Specifically, under Part B of Ministerial Decision no. 90972/15-11-2021, individuals identified as managerial employees now includes those authorised to make autonomous decisions.

In addition, the monthly remuneration limit for executives falling under Category B is revised from six to four times the minimum statutory salary (currently EUR 3,120.00). Executives in Category C will now have a monthly remuneration limit of six times the minimum statutory salary (EUR 4,680.00), instead of the previous eight times. The determination of managerial status in ERGANI II is established during the recruitment process by submitting a declaration of basic conditions of employment.

For further information please contact:

Grace Ch. Katsoulis LL.M., Partner, BALLAS PELECANOS LAW, Athens, Greece.
Email: grace.katsoulis@balpel.gr