Cost of living allowance
The Department of Labour Relations, Social Policy & Human Resources Development of the CCCI wishes to inform you that based on the data of the Ministry of Finance, excluding the impact of the increase in consumption taxes, the average Consumer Price Index in 2023 amounted to 111,38 units, compared to 107.45 units in the previous year, meaning an increase of 3.66%.
Based on the transitional agreement of 12/5/2023 for the Cost of Living Allowance (COLA), the Allowance amounts to 66.7% of the annual increase of the Consumer Price Index, provided that during the second and third quarter of the previous year, there isa positive growth rate. In the second and third quarters of 2023, the growth rate was positive at 2.2% respectively.
Based on the above and given that in the existing agreement there is a clear commitment that in the absence of any new agreement, the current regime for payment of 66.7% continues, once a year, the increase of the Cost of Living (COLA), for those companies that grant it, amounts to 2.44% on basic salaries as 1/1/2024. Therefore, the total Cost of Living Allowance increases from 8.52% to 11.17% on the basic salaries.
Below is the circular of the Ministry of Finance for your information.