Government Clarifications on COLA Awaited

Social partners are awaiting clarifications from the government regarding the latest proposal for the renewal of the agreement on the Cost of Living Allowance (COLA). The Ministers of Labor and Finance are expected to provide clarifications on the five key points of the proposal.

Representatives from employer and trade union organizations participated in the Tripartite Social Summit in Brussels. Upon their return, developments are expected regarding the COLA issue. Clarifications are likely to be sent today or Monday.

According to reports, there is not much optimism for finding common ground. Employers and trade unions reportedly disagree with key points of the government's proposal. The employers are expected to send a letter to the ministers, clarifying their positions, while the trade union organizations are suspicious of the government's proposals.

The main points of the government proposal include: (1) Gradual increase in the granting of COLA up to 100% by 2028, (2) A 4% cap on inflation for granting COLA, (3) Maintaining existing provisions, (4) Integration of COLA into the minimum wage with review every 2 years, and (5) Providing incentives to employers to adopt COLA.