According to Art. 2 of Law 1876/90, collective wage agreements fix, among other things, wages and salaries of employees according to their field of application. Legal remuneration consists of the basic wage and supplementary benefits, e.g. family allowances, seniority bonuses and a special allowance for dangerous work. However, apart from the rates of pay and conditions of employment provided for in the collective agreements, other conditions of employment can be negotiated between the individual worker and his/her employer. If these conditions and pay are more favourable than those contained in the collective agreements, then these provisions have precedence over those specified in the agreements.
Government incomes policy for 1994 provided for a 5% increase in wages and salaries as of 1 January 1994 and a further 5% rise as of 1 July 1994. For 1995 the following increases were made: in the private sector, 4% on 1.1.1995 and a further 4% on 1.7.1995; in the public sector, 3% on 1.1.1995 and an additional 3% on 1.7.1995, whereby an additional payment was made at the end of the year, the level of which depended on the rate of inflation.
The following increases in minimum wages and salaries were fixed for the private sector in 1996: 3.5% on 1.1.1996 and 4% on 1.7.1996. For 1997 the following increases in minimum wages and salaries were agreed: 4.25% on 1.1.1997 and 3.25% on 1.7.1997.
Employees in the public sector were granted the following increases in remuneration:
- 1995: 2.1% on 1.1.1995 and 3% on 1.7.1995.
- 1996: 2.5% on 1.1.1996 and 2.5% on 1.7.1996.
The following wage increases were fixed for the private sector in 1997 and 1998:
- 1997: 3.25% on 1.1.1997 and 3.25% on 1.7.1997.
- 1998: 2.5% on 1.1.1998 and 2% on 1.7.1998.
The following wage increases were fixed for the public sector:
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