Losses for wage earners up to 40% in 2011

2010 departed with serious losses for the income of all wage earners, due to the cuts in benefits but also the great increases in basic services and consumer goods.

According to INE-GSEE the major losses, 25%-30%, applied to public servants, while in 2012 they will go up to 40%.

The new unified payroll to be implemented will directly affect new entrants to the state, who will be paid with the salaries applicable to the private sector from now on. Cuts are also expected in high benefits that increase employee salaries up to 140%. The most important goal of the government is to close the salary gap of employees with same qualifications in order to diminish state wage costs for 2011 by 400mil euros, as required in the memorandum.

The great increases in goods and services contribute largely to the dramatic decrease of wages, since according to the Statistics Office, in August 2010 the following increases were recorded, as compared to August 2009:

-    32,9% in petrol
-    28,7% in vehicular taxes
-    7,2% in electricity
-    6,9% in hospital care

The wage losses in the private sector are difficult to calculate, as we don’t know the extent to which the new business contracts will be implemented. However, wherever the new contracts are in force, losses due to the deviation from the sectorals can exceed 20% without avoiding lay-offs. But if the social partners do not agree, the workers will be led to personal contracts, probably with more onerous terms, since the only bulkhead which exists is salaries depending on the years of service, based on the National Collective Labor Contract.

A survey by INE-GSEE also estimates that losses due to inflation will exceed 5% while those who are employed with flexible working patterns will lose out, too. Specifically, 210.000 temporaries, with contracts of less than 1 year earn less than 850 euros each month, while 1 in 2 in the private sector earn 1050. Pensioners are included in this year's loser list, while the changes also affect freelancers who will now be taxed according to the new standard of living evidence in order to check if the declared income is compatible with their lifestyle.