ECONOMY

Salary workers to get a boost

salary-workers-to-get-a-boost

The Greek economic recovery plan to be forwarded to the European Commission in October will attribute great significance to supporting workers through the reduction of taxes and social security contributions that have hampered the real economy and fed the illegal economy, sources from the prime minister’s office say.

They note that easing the burden on workers from taxes and contributions will be one of the central elements of the plan as reflected in the intermediary report by the committee led by Nobel Prize-winning economist Christopher Pissarides.

The government is therefore reaching for its election pledges to put them into action. They include the gradual abolition of levies introduced during the bailout period, such as the solidarity levy and the annual fee to practice certain professions; the significant reduction of non-salary costs, aimed at bolstering employment, especially among young people and women; and innovative interventions, such as at the Manpower Organization (OAED), so hundreds of thousands of jobless people can find work.

The immediate objective will be the reduction of the tax and social security burden on households and corporations. This is because government officials say it is time to ease the pressure on the middle incomes that have suffered in recent years.

After last year’s tax bill that did not do much to help middle income earners, government sources say that boosting salary workers this year could lead to a growth recovery, with multiplying effects on incomes, along with the expansion of small and medium-sized enterprises (SMEs) as it will make the economic pie bigger.

Employment with more attractive salaries will lead to a gradual increase in jobs. The tax cuts will enhance households’ disposable incomes, resulting in the growth of savings that will in turn strengthen investments. Along with the bolstering of SMEs, the number of large enterprises will increase thanks to better conditions for more hirings and greater investments, again benefiting the entire economy.