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Higher wages for private sector workers, increases but also retroactive for retirees, a new minimum wage, reversal of benefits, an extension of unemployment benefit for the unemployed at the end of their allowance, but also an extension of teleworking and the 2021 “Co-Work” mechanism to millions of employees and retirees.
With the New Year looming amid a pandemic and lockdown and the economy experiencing its biggest postwar recession, new measures to support households are being activated since early 2021, accompanied by gusts of liquidity.
Changes are expected in 2021 in terms of salaries, pensions and supplements:
Reduction of insurance contributions: Increases in the net salaries of employees from 8 euros per month to the minimum salary of 650 and reaching or exceeding 23 euros for employees with a monthly salary equal to or greater than 2,000 euros brings as of January 1, 2021 the reduction of prices by three percentage points units. For employers, the corresponding benefit of the “scissors” of insurance contributions starts from 12 euros per month for the minimum wage of 650 euros and exceeds 35 euros, if the salary is higher than 2,000 euros. The reduction in insurance contributions supposes an annual benefit of 228 euros for the employee of 1,000 euros, 342 euros for those who earn 1,500 euros, 456 euros for a salary of 2,000 euros.
Solidarity contribution “Freeze”: As of January, the monthly deduction for solidarity contribution made to the payroll of private sector employees is zero. Thus, from the first month of the new year, private sector employees will find an increase in their salary since there will be no deduction of solidarity contribution in their monthly salary. For example, a private employee with an annual income of 25,000 euros will avoid taxes that reach 426 euros per year. The tax benefit exceeds 1,000 euros for those who earn more than 35,000 euros.
Retroactively withdrawn: On January 15, 2021, in the Plenary of the State Council, the “luck” of the retroactive cuts in complementary pensions and gifts of all retirees is judged, who demand an average of 3,000 euros. According to Nea, with a recent decision the Athens Administrative Court confirmed the view that many lawyers have expressed that the cuts deemed unconstitutional by the CoE Plenary Session for the 11 months from June 2015 to May 2016 are not limited to meetings but also worrying about Donations and cuts in supplementary pensions for the respective period.
Increase in pensions: With the payment of pensions in March or April, 190,000 retirees who have more than 30 years of pension will be paid the increases in pensions together with the retroactive ones, as a result of the implementation of the Vroutsis law. Together with the increases, retroactive payments will be made (as of 10/1/2019). The increase ranges between 12 and 252 euros. The increase will be greater the higher the pensionable income, that is, the income on which the pensions are calculated. The maximum increase will amount to 252 euros (11.8%). New retirees, that is, those who receive a pension with 30 or more years of insurance after May 13, 2016 (with the provisions of the Katrougalos law – law 4387/2016), will receive the total increase in their pocket while those with a personal difference will receive an increase above the amount of their personal difference.
Retroactive retirees who work: Retroactively and with a 75% increase in their monthly pension, all working retirees will receive with their pensions for April 2021. This is because the “penalty” will be retroactively reduced to 30% of the March 2020 pension, when it came into effect based on the new insurance law. Your principal and auxiliary retirement income is paid reduced by 60%. As of March 2020 it should be paid reduced by 30%, however the new “penalty” has not yet been implemented.
Explosion of new pensions: It is estimated that 2021 will be a year of retirement in view of the adverse changes of 1-1-2022 as the existing pension data (already) register an increase of 30%. With the known semesters, according to current legislation, there are upheavals in 2021 and the retirement ages will increase by 6 months for retirement with 35 years of the State, DEKO Funds, banks and press and in 11 months for retirement with 37 years of the Always been. 25 years until 2010. At the same time from 1-1-2022, the general retirement age limit is established to establish a full pension for old age at 62 years (with 40 years or 12,000 days of insurance) and at 67 years (with 15 years or 4,500 days of insurance).
Subsidies: The full team at the Ministry of Labor is expected to deliver a full and documented report on the cash benefits of the insurance funds by February 26, 2021. These are the non-pension benefits of the funds for their policyholders and not the benefits social payments paid by OPEC based on income criteria. The upcoming changes concern sickness allowance, work accident allowance, maternity allowance, funeral expenses, camp benefits. It should be noted that the Pissaridis report proposes the consolidation of all benefits into one, except for unemployment, disability and a housing allowance to be paid to weak debtors. According to the report, the consolidated allowance should be awarded to people with low family incomes even if they work and is designed to boost work incentives. Unemployment benefits are expected to be expanded in April with government-sponsored support measures.
Minimum salary: The process for the new minimum wage will begin in the last 10 days of March and is expected to end in the second 15 days of July, when the Minister of Labor will have to propose the new minimum wage to the cabinet. According to the law, the level of the minimum wage and salary must be determined “taking into account the situation of the Greek economy and its growth prospects in terms of productivity, prices and competitiveness, employment, unemployment rate, income and wages”. The same procedure stipulates that the Minister of Labor is not bound by the expert’s conclusion, but takes it into account when proposing the new salary amount to the cabinet. The minimum wage today is 650 euros.
Telework – Collaboration: The extension of the confinement has led to the extension of the telecommuting and Co-Work program. The suspensions are extended in January, as the closure is already valid until January 7, while it is assumed that the measure will be valid at least until the end of January for the affected KAD.
Digital pension: with pending pensions in excess of 300,000, the Ministry of Labor’s digital pension calendar will be implemented in the new year as follows:
-Health pensions for disability and old age, as of March 2021.
Old-age pensions for employees, public and engineers, as of August 2021.
Old-age pensions for the self-employed, lawyers and press employees from December 2021.
