The Best of GRReporter
flag_bg flag_gr flag_gb

The average salary in the Greek public sector is 1,900 Euros

19 November 2011 / 15:11:48  GRReporter
10665 reads

The new payroll table provides drastic cuts in wages retroactive from November 1, reductions in allowances and a ceiling of 1,900 Euros for the average wage.

Remuneration of workers in state enterprises, public limited companies, municipal companies and companies in amelioration, will be reduced significantly by 35-40 percent. According to the Ministry of Finance, wages and allowances of workers in state enterprises will be adjusted downward retroactively from November 1, in accordance with the standard wage, introduced in the public sector with the payroll vote.

Adjustment of wages in the new state-owned enterprises (except for stock listed companies) will be calculated on the basis of two important factors:

• The remuneration of employees in state enterprises cannot exceed the ceiling of remuneration of an employee from the same educational category in the public sector, based on the new payroll table. For example, according to the new payroll table the remuneration ceiling for employees with primary education is 1,331 Euros, which must include all allowances provided for in the collective agreements.

Zero values

This means that in many cases, the mentioned allowances will be drastically reduced or even eliminated in order to adjust salaries to the new requirements. Salaries can be increased with allowances provided in the new payroll table (family allowances, working under hazardous conditions, working in border areas and positions of responsibility).

• The average amount of remuneration, together with all allowances, except for contributions by the employer, should not exceed 1,900 Euros.

After the remuneration reduction of employees in accordance with the new payroll table, another cut will follow in order to be able to meet the second condition for 1,900 Euros, which will happen in each enterprise separately. In order to calculate the average amount, the following will be taken into account: salaries of full-time and seasonal staff, workers on a fixed-term contract, and lawyers working for a fixed fee. The wages of workers with project contracts, as well as board members will not be taken into account.

Remunerations include salaries, allowances, benefits, and any other type of remunerations.

During the first year the reduction in salary and allowances cannot exceed 25 percent of the salary, and in the case that further cuts are intended, it will be distributed in equal monthly amounts over the next two years.

Responsibility for the implementation of the new payroll table in state enterprises lies with the Board Councils, which will have to provide details to the Ministry of Finance in the first 20 days of each quarter.

If the data is not sent, subsidies will be suspended from the state and penalties will be imposed on board members.

WHAT IS ENVISAGED

Exceptions in the new regime

The Financial ministry circular was sent to all ministries, as well as to 72 state enterprises, which include: public transport in Athens, aviation, public television, public railways, harbours, subway, etc. Management boards of the companies will have to implement the new system from 1 November and submit relevant data to the Ministry of Finance by 20  January 2012. The following companies do not have to implement the new payroll table: the Public property management fund, the Fund for financial stability, and the creative staff of the National Theatre, the State Theatre of Northern Greece, the opera "Liriki Skini" and the state orchestra of Athens and Thessaloniki .

The ceiling on salaries of chairmen, CEOs and administrative authorities together with additional bonuses remains at 5,856 Euros gross monthly pay.

For management positions the maximum remuneration is calculated on the basis of the ceiling on wages in the public sector, together with the allowance for a position of responsibility. For example, an employee with higher education who serves as general manager may receive a maximum salary amounting to (2409.00 + 900.00 =) 3,309.00 Euros (and additional family allowances if he meets the relevant requirements).

In particular, according to the new payroll table the maximum salary for employees in state enterprises is as follows:

For employees with primary education - 1,331 Euros, for employees with secondary education - 1,688 Euros, for employees with technical education - 2,243 Euros, for employees with higher education – 2,409 Euros.

Family benefits amount to the following:

For one child - 50 Euros, for two children - 70 Euros, for three children - 120 Euros, for four children - 170 Euros, and for five children - 240 Euros.

For example, an employee in a state enterprise, who has a technical education, and one child will receive a total remuneration of 1,750 Euros (salary - 1,200 Euros, child allowance - 50 Euros, allowance for working under hazardous conditions - 200 Euros and other allowances - 300 Euros).

Tags: Greece public sector civil servants payroll cuts salary remuneration
SUPPORT US!
GRReporter’s content is brought to you for free 7 days a week by a team of highly professional journalists, translators, photographers, operators, software developers, designers. If you like and follow our work, consider whether you could support us financially with an amount at your choice.
Subscription
You can support us only once as well.
blog comments powered by Disqus