The Minister of Labor and Social Security, Niki Kerameus stressed the importance of reducing social security contributions and the positive impact the measures announced by Prime Minister Kyriakos Mitsotakis at the Thessaloniki International Fair are set to have on employment, in an interview on Greece’s national TV, ERT. Measures concerning social security in Greece have been a highly contentious policy topic in the country, with many governments over the years trying to strike a balance between fair contributions and not affecting economic growth.
The minister noted that there has already been a reduction of 4.4 percentage points to contributions, with one more percentage point currently set to be implanted, with the goal to reach a total reduction of 6 percentage points by 2027. She further clarified that a reduction in social security contributions leads to the creation of new jobs and boosts employment.
Kerameus highlighted that according to the latest data released, in 2024, 500,000 more people work in the private sector compared to 2019 as a direct result of the 4 percentage points reduction.
Regarding the measures announced related to the insurance sector, the minister noted that for pensioners, there will be an increase ranging from 2.2% to 2.5$ that will be given to pensions starting January 1, 2025.
She also highlighted a special allowance of up to 200 euros for about 670,000 pensioners who have an income of up to 1,600 euros with a personal difference.
As for the increase in the minimum wage, she said that it currently stood at 830 euros, with the government’s goal being to reach 950 euros by 2027. Furthermore, the minister announced that consultations with social partners would begin in January 2025 to determine the amount of the increase, to be implemented within the new year.
Additionally, Kerameus mentioned a shift in the philosophy of unemployment benefits. Currently, in Greece, citizens receive the same sum of benefit money regardless of the hours they work per week. She explained that the new unemployment benefit will be based on two principles.
According to the new benefit, the amount received will depend on whether an individual worked full-time or part-time. The second change in the social security plan in Greece is that the benefits will be front-loaded, meaning more money will be granted at the beginning of the unemployment period, and the benefits will gradually decrease to encourage the unemployed to find work.
Finally, commenting on the implementation of the digital labor card, she emphasized that it is a measure to record the actual working time of employees, which started two years ago, announcing its further extension, in a pilot phase, to the tourism and catering sectors, in the coming days.
