Minimum wage increase could make smaller enterprises suffer

The announcement of the increase of the minimum wage, expected this week, is set to create a new social, economy and business landscape in Greece.

Sources converge on the information that despite disagreements and reactions, the government decision is for a hike of between 8 and 10 percent. Therefore the increase in absolute figures will reach or even exceed 50 euros on a monthly basis and bring the basic monthly salary to almost 640 euros.

The government argues this will contribute toward the reduction of income imbalances and the consolidation of social cohesion, while employer associations are currently remaining quiet about how much this will affect them financially (and therefore about the negative impact of a possibly sizable hike on the productivity of labor and the competitiveness of the domestic economy).

A possible increase of between 8 and 10 percent...