Apr 13 2012

Minimum Wage – Greece Versus Ireland

Category: EconomyTeknovis @ 5:06 pm

Ireland and Greece are both currently being bailed-out. This effectively means that both countries are funding their current expenditure using borrowed money. This became necessary because their economies both got into serious difficulties. So it is very interesting to see how both countries are adjusting to this financial dependence.

I read today that the minimum wage in Greece has been reduced to 580€ gross per month, according to Greek unemployment at record high with youth jobless rate now over 50%. This reduction is designed to boost employment (by making it cheaper to employ people) and boost the economy (by making exports cheaper).

I was curious how this compared to Ireland, so I did some investigating. According to my calculations, the minimum wage in Ireland is 1,500€ gross per month. (This is based on a minimum wage of 8.65€ gross per hour as described in Minimum rates of pay.) Even more interesting is the fact that the minimum wage in Ireland was increased by 173€ gross per month in 2011.

The Greeks (and probably many others in the EU) must look at Ireland and wonder how the Irish can afford such high minimum wages at a time when the country is bankrupt!

I certainly do not understand this!

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One Response to “Minimum Wage – Greece Versus Ireland”

  1. cam4 says:

    Hello Teknovis,
    Thanks for that, On February 10, The Arizona Republic reported the state’s new minimum wage law had cost many teen workers their jobs. Arizona lawmakers recently increased the minimum wage from $5.15 per hour to $6.75 per hour, a move designed to help lower wage earners support themselves and their families, but the end result has been fewer jobs for part time workers and lay offs and fewer hours for those who still have jobs.
    Good Job!