With June 2024 pay, employees employed on 1 January of each year in companies without second-tier collective agreements with financial provisions and who in the previous year (1 January – 31 December) received remuneration consisting exclusively of amounts set by the National Collective Labour Agreement (e.g., employees with no collective or individual discretionary wage elements, annual bonuses or other remuneration subject to contributions) will receive an annual ‘equalising’ payment of €485, which is all inclusive and does not affect severance pay, or a lower amount up to the aforementioned amount in the case of lower additional remuneration.
This amount is determined on the basis of the duration of the employment relationship, including non-consecutive periods, during the previous year; any fraction of a month exceeding 15 days is considered to be a full month for these purposes.
Notwithstanding the criteria for accrual of the equalizing element, if employment is terminated before June, the above amount will be paid at the time when any entitlements are settled.
The equalizing element is, for all intents and purposes, accrued in the year of payment, since the reference to wages and salaries received is taken as the benchmark for the purpose of its recognition.
