What we mean by ‘pay’
Compensation is a primary motivator for job changes globally, necessitating that it be both proportional and sufficient as per national law. Collective bargaining agreements (CBAs) establish minimum pay standards, with courts ensuring constitutional compliance. Recent Italian Supreme Court rulings showcase the evolving definition of ‘pay,’ reflecting both traditional and modern employment practices.
In Greece, the statutory legal minimum wage is regulated and defined by a Ministerial Decision, after consultation with the stakeholders (i.e. trade unions, scientific organisations and government). The wages set in CBAs cannot fall under the minimum legislative wage and are, in most cases, well over this threshold. Even where employers are not bound by a specific CBA, they usually provide for higher than the legislative minimum wage as well as benefits in kind or in cash.
Certain statutory benefits (e.g. Christmas/Easter bonus, annual leave allowance) form part of the remuneration and are taken into account when calculating compensation, severance pay, and the like. There is a discrepancy between tax law, social security law and labour law as to whether a benefit in kind or in cash can be considered as part of the remuneration. For tax and social security law most benefits, either in kind or in cash, are considered as part of the remuneration to the extent that they are given in exchange for work provided. Nonetheless, according to labour law and relevant case law, any voluntarily provided benefits in kind or in cash (over and above the statutory ones) for which the employer has reserved the right to unilaterally amend, stop or revoke them at any time and for any reason, are not considered as part of the remuneration and do not count in the calculation of allowances, bonuses, severance pay and compensation of any kind.
This analysis incorporates perspectives from 13 additional countries, offering a thorough overview of global compensation policies. For more detailed information, please refer to the original article on Ius Laboris HERE.