The salary was connected, at least until recently, with employees and the daily wage, respectively, with the craftsmen. The distinction between them used to be to the benefit of the former, throughout time. However, alongside the concept of salary and daily wage we encounter, in most cases, the concept of hourly wage. Are individual distinctions and use of individual concepts, institutions, values and calculations necessary? Do they exist, perhaps, for the benefit of businesses or employees? Do the relevant legislative regulations and ministerial decisions (especially those related to minimum wage limits) unnecessarily create serious “headaches” and problems for businesses and (justified) feelings of injustice for employees? And what would the abolition of the salary and daily wage and the uniform application of the hourly wage mean for all, without exception, cases? And if, in the end, its (excellent) application turns out to be nothing short of terrifying, would it simply solve all the relevant problems?
Employees and Craftsmen, Salary and Daily Wage
With the passage of time, we notice that the regulations of the law increasingly equate Employees and Craftsmen.
In this direction we find the recent labor law (:law 4808/2021), by virtue of which (art. 64 §1), previous differences between employees and craftsmen were equalized, as all discrimination “…regarding the deadline” was already abolished notice and the termination of dependent labor contracts”.
The most important thing: in a previous article we established, with certainty, that despite the usual practice, it is clearly permissible (according to the law and jurisprudence) to pay a salary to the craftsmen and, respectively, a daily wage to the employees.
Minimums (salary and daily wage)
The very recent Decree No. 31986/2023 of the Minister of Labor and Social Affairs (: Official Gazette B’ 2023/28.3.2023 ) provides for the determination of “…the legal minimum wage and the legal minimum daily wage, for full-time employment, for employees and the craftsmen of the whole country…, as follows:
- a) For employees, the minimum salary is set at seven hundred and eighty euros (€ 00).
- b) For craftsmen, the minimum daily wage is set at thirty-four euros and eighty-four cents (€34.84).
Salary vs daily wage: the considerations
Salaried employees and salaried craftsmen
As we have already pointed out, employees and craftsmen can be paid a salary or a daily wage – whatever they agree with their employer. And the above Ministerial Decision (no. 31986/2023) links, unfortunately-according to established practice, the minimum wage with employees and the minimum daily wage with craftsmen.
The calculation – the amount of the consideration
Based on the above data, an employee (employee or craftsman) is likely to be paid a salary – in which case they will receive €780. However, it is possible (the same employee or their colleague performing the same work) to be paid a daily wage. In this case – in the system, e.g., of six-day employment – they will receive €871 (times 25 daily wages x €34.84) or, as the case may be, €905.84 (times 26 days’ wages x €34.84).
It is easy to see that the specific differences lack not only legal background but also seriousness. All the more so as it is possible for them to concern the same worker (: employee/craftsman) or their colleague who performs the exact same work and is paid in a different way. (It should be noted, of course, that equal treatment is, logically, subsequent to considerations) …
The method of calculating severance pay
Furthermore, the legislator, in order to calculate the employee’s severance pay (: art. 64 §3 law 4808/2021- art. 327 3§3 Presidential Decree no. 80/2022), considers that their (supposed) monthly salary equal to 22 days’ wages (when not already paid a monthly salary). That is €766.84 (:22 x €34.84). It therefore falls short of the minimum wage – under any method of calculating it.
If one looks for logic in all of the above, we could safely assume the unfortunate outcome of their efforts…
The hourly wage: an unprecedented concept?
In most regulations we find the concept of hourly wage. Indicative in overtime, legal & illegal overtime employment as well as part-time employment.
Overwork
overtime is paid at the paid HOURLY WAGE increased by 20%.
As we mentioned in the past, (statutory) overtime (: art. 58 law 4808/2021) is considered the time of employment that exceeds the contractual hours, but not the maximum legal hours. In companies with a five-day working system from the 41st to the 45th hour and in companies with a six-day working system from the 41st to the 48th hour.
Overtime
Overtime means the provision of work that exceeds the contractual and legal hours. The law (: art. 58 law 4808/2021) distinguishes between legal and illegal overtime.
Statutory Overtime
Overtime (legal) workers receive as remuneration for each hour of overtime work an amount equal to the HOURLY WAGE paid, increased by 40%.
It is noted that legal overtime is that which (after the necessary notifications) is provided for work beyond 45 hours per week in five-day businesses and 48 in six-day businesses. It cannot, however, exceed three (3) hours per day and one hundred and fifty (150) hours per year.
Illegal Overtime
Overtime work may take place without complying with the legal requirements or in excess of the maximum limits. The illegally (overtime) employed employee is entitled to compensation equal to the paid HOURLY WAGE increased by 120%.
Overtime Leave
Under certain conditions, it is possible to grant an overtime work permit to companies, in addition to the maximum permitted overtime work limits. Such (after permission from the competent body of the Ministry of Labor and Social Affairs) overtime employment is paid with an amount equal to the paid HOURLY WAGE increased by 60%.
Part time job
Based on the HOURLY WAGE of a comparable employee, the remuneration of the part-time employee is calculated (Art. 38 §9 Law 1892/1990). And, in the event of exceeding their agreed hours, they are entitled to a corresponding consideration with an additional twelve percent (12%) on the agreed consideration for each additional HOUR of work they will provide (art. 38 §11 law 1892/1990).
It is reminded that part-time employment of an employee can be agreed during the drawing up of the employment contract (or during it) between the employer and the employee. This agreement must be enclosed in a formal document and may refer to daily or weekly or fortnightly or monthly work of shorter duration than normal, for a definite or indefinite period (: art. 38 §1, law 1892/1990).
Hourly wages and labor rights
The replacement of the hourly wage and the daily wage by the hourly wage and the universal application of the latter would be likely to raise reasonable concerns among the well-meaning and vehement objections from the usual and all-out naysayers. Both logically expected. But this happens in every change. In this particular case, however, it would be advisable to have (in parallel with the establishment of a generalized and only application of the hourly wage) a generally worded “reassuring” provision. A provision with the content of, in any case, ensuring – and not worsening – the contractual and legal rights of employees, regarding (also) their working time limits & remuneration.
The maintenance (to this day) of matching the salary with the employees and the daily wage with the craftsmen, is (already/also) legally consequential. The maintenance (to this day) of the differentiation of the way employees are paid by salary or daily wage creates legal and practical inconsistencies. It obviously lacks logic and, ultimately, seriousness. It only creates problems for businesses and serious injustices for employees. And if one considers the current necessity of calculating (some) hourly wages for exceeding daily hours and also for part-time work, one will reasonably wonder: Will the generalization of the method of remuneration of employees on the basis of hourly wages solve all, without exception, the related problems?
Only one answer is appropriate: obviously.–
Stavros Koumentakis
Managing Partner
P.S. A brief version of this article has been published in MAKEDONIA Newspaper (September 24th, 2023).
Disclaimer: the information provided in this article is not (and is not intended to) constitute legal advice. Legal advice can only be offered by a competent attorney and after the latter takes into consideration all the relevant to your case data that you will provide them with. See here for more details.