The figure of 650 euros per month (gross pay) was the “bonus” announced by Greek Prime Minister Alexis Tsipras himself on Monday, making the more-or-less expected announcement made during a televised Cabinet meeting no less.
As also expected, Tsipras said a sub-minimum wage scale for new hirings under the age of 25 was abolished. The announcement of the 11-percent wage scale increase follows a unilateral decision by the labor ministry, eschewing collective bargaining negotiations between unions and employers’ groups.
Tsipras referred to an “emblematic initiative for working people”, citing a wage increase that will boost the real economy.
The developments comes after successive minimum monthly wage scale cuts over the crisis years, ostensibly aimed at making Greece’s labor market more competitive.
Increasing wages was one of the most prominent pledges made by Tsipras and his leftist SYRIZA party prior to the 2015 elections, with the promise at the time being 751 euros a month. Nevertheless, while in power the government cut the wage scale, as part of the third bailout memorandum it signed in the summer of 2015.
