Companies cut salaries by 20 percent

The labor market is undergoing a huge shift after the reduction of the minimum wage, with many companies proceeding to salary cuts by up to 20 percent since February 14 through individual contracts with their employees, according to data collected by the Labor Inspectors’ Squad.
Data show that at 45 businesses employing over 50 people there were new contracts with an average salary decline of 20.094 percent.

Within just one month from the application of the law providing for a 22 percent reduction in the minimum wage, as agreed with the country’s creditors, there have been no fewer than 45 new corporate contracts in Athens and Thessaloniki, while in the preceding four-month period, from October to February, there had only been 65 new contracts throughout the country.

Since February 14, 3,231 small enterprises, employing fewer than five people, have submitted details of their employees’ individual contracts with an average salary drop of 20.63 percent. These reductions concern some 15,000 workers.

Meanwhile, the Labor Ministry is to present Parliament with a regulation that will reward businesses that are consistent in paying their social security contributions: From early October they will get a 5 percent reduction in their contributions to social security funds. 

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