How does the Tax Office eat the increase in the minimum wage – who ‘pays’ it

Tax Office and bookings eat the monthly gross increase of 50 euros in minimum wages of private and public sectors from 1/4/2025.

« Such a processes of meager increases leave society frosty indifferent.

No worker is interested in how the government will share the « scheduled » 120 euros by the end of the four -year period, « GSEE said in a statement and calls on workers on the April 9th ​​strike.

It should be noted that unmarried, couples without children, but also couples who have a child will find that the remuneration is changed to tax and the amount they will be up to will be twice as much as they pay today.

The reason is the difference between the first scale and the second, as the tax for up to 10,000 euros is 9% and is launched to 22% for incomes of 10,000.01 euros and above. Thus, the increases that will be given by the tax office.

An example is the example of an unmarried employee of the private sector or married without children, who is paid 14 salaries.

If today he receives the minimum wage, ie 830 euros gross, his tax is € 137 or € 9.8 per month. As of April 1, the earnings of this employee may reach even EUR 880 gross.

In this case, however, it should be aware that the annual tax will rise to 270 euros or 19 euros per month, that is, it is doubled, as a larger « part » of its earnings will be taxed at a rate of 22%, which is activated from € 10,000.01 or more. Thus the final charge will be 133 euros a year.

For employees with a child with the increased tax free (at 10,000 euros) the annual tax on new earnings will be 137 euros instead of a 2 euro salary of 830.

Civil servants, unmarried or married without children, who are paid 12 salaries, will also pay a higher tax.

Yesterday, Labor Minister Niki Kerameos stressed that more than 1.6 million citizens are estimated to be directly beneficiaries of the new increase in the minimum wage, and will indirectly earn even more. As he recalled, the minimum wage started at 650 euros in 2019, today it is 830 and on April 1st it will be at 880, with a target of 950 euros.

Speaking of beneficiaries from the increase in the minimum wage, Niki Kerameos explained that « more than 570,000 are employees in the private sector who are paid minimum wage. All civil servants in the country benefit, everyone will see an increase in their salary.

Those who receive benefits and benefits are calculated on the basis of the minimum wage.

And I am referring to maternity allowance, marriage allowance, parental leave allowance, unemployment allowance. All these benefits are intertwined with the minimum wage.

For example, the maternity leave, which I recall, this government has expanded to 9 months and has expanded to those who receive maternity leave, instead of being 830 euros, will now be 880 euros.

So beneficiaries are not just the minimum wage workers, they are not just civil servants. They are all those who receive benefits at the base of the minimum wage.

And of course the three years, which are calculated on the basis of the minimum wage.

Those who benefit immediately are over 1.6 million. But they also benefit indirectly because it has been shown that the increase in minimum wage is also average salary. « 

Open window to restore the 13th pension is left by Labor Minister Niki Kerameos.

Caution, not the 13th salary, but of the 13th pension.

The Minister of Labor and Social Security Niki Kerameos spoke on the 90.1 radio station and when asked about the 13th pension he stressed: « These are issues related to the fiscal space. Obviously, the Treasury is managed by the Treasury, which has the total overview of the country’s finances.

The more the state receives, the more it can give back to society, so this is the effort to be made, it will continue to be done. The better the tax revenue goes, the more it creates us fiscal space to return to society. «