Big communication storm for the gross increase of 4.5% (already eaten up by galloping inflation especially in energy and followed by food, transport etc.)
But should the workers be celebrating?;
The following Table (from Kathimerini - Three-tier minimum wage depending on age - Examples | KATHIMERINI) but it is particularly revealing.
When the gross wage increases by 4.5% the net (after taxes and contributions) increase is only 3.7%. But while the worker will only see this 3.7% the taxes (on the basic wage) go up by 37.6%!
For someone with 3 triennials the corresponding amounts are a net income increase of 3.8% and a pay increase of 17% respectively.
So the government, by keeping the tax scale without indexation, is robbing the (unfortunately poor) wage earner. So that it can possibly give a small portion of the overtaxation back in the form of a Fuels Pass type handout.
The evolution of taxable income of the main categories of taxpayers is characteristic (using official data of the Hellenic Tax Administration for 2019 until February 2023, where published data are available and expected for 2024)
Increase in taxable income of employees 21%.
Increase for Pensioners in the same period 2.9% (here is the biggest drama since it depends entirely on the government's moods).
Increasing incomes for rural entrepreneurship 17%.
While respectively,
income increase for entrepreneurs (excluding farmers) 103% (more than doubling)
and growth of Legal Persons (enterprises) 106% (over-doubling)
This is the outcome of the government's artful and violent compression of wages and pensions. It is essentially (negative) redistribution at the expense of labour and in favour of business.
So we end up in the sad last place in disposable income in Europe
The unfortunate thing is that it manages, with its communicative domination of the disreputable media, to fool many. But it will not succeed forever
