Targeting minimum wages, bonuses and allowances

Minimum wages in the private sector, compensations in SOEs and banks, 13th and 14th salaries seem to be the Troika’s main focus.

After the dramatic reduction in minimum wages, changes in sectoral agreements and the extension of flexible forms of work based on the 2nd memorandum, the Troika requests changes to the way the minimum wage is fixed, insisting that it should be the responsibility of the government. If it finds that the labour cost unit is not reduced sufficiently, it is possible it will once again ask for a new reduction shortly before the release of the 31-billion-euro tranche.

With the changes in the insurance issues currently being finalized, a significant cut of bonuses and benefits in the public sector, public sector pensions and supplementary pensions leaves an open window to start a debate for the elimination of the 13th and 14th salaries in the private sector too.

The review of the policy of compensations is another issue lying in the background. The aim is to facilitate changes in the broader public (institutions, public utilities, etc.) and private sectors (mergers, reducing networks etc.).

The lenders’ intention is to drastically reduce the cost of layoffs, starting with retirement cases and the so-called severance pay due to the issuing of pensions.