Sotos wrote:€4-€5 is perfectly fine for a waiter in Cyprus who will also collect tips. Cyprus isn't Monaco, and on top of that we have just been through a crisis. Secondly, waiters are not exactly highly skilled labor, so it is expected that their wages will be among the lowest.
If the government enforced higher minimum wage then their employers would not be able to afford them, many of those would close down, and unemployment would rise.
That's a myth Sotos. I am in business for the last 35 years and I can make an accurate estimate of the annual profits of any healthy business employing up to 30 people. Restaurants are seasonal business operating on a gross margin of standard 400%. Go eat fish at Mackenzie beach,if the gross cost is 20 you will pay 80 Euros. Instead of looking at the turnover though you can look at the number of employees.
10 employees means the boss makes a minimum nett profit of 1-2 times the profit of their salary. So a typical restaurant at Mackenzie beach with 10 employees would deliver a minimum of 10,000 Euros/month nett to the Boss.
The only way to make that business non profitable would be to Double or Triple the wages of the employees.