ECONOMY

Boost for the private sector

boost-for-the-private-sector

Salary workers, entrepreneurs, freelancers and self-employed professionals are in for a boost thanks to a new bill tabled by the Labor Ministry in Parliament on Tuesday; its clauses provide for a three-percentage point reduction in social security contributions as of January 2021, and the arrangement of any debts created over the course of the pandemic.

The multibill that foresees the regulation of social issues such as child support and the enhancement of adoption rules also includes a clause that will lead to a raise of about 8 euros per month in the minimum salary for salary workers in the private sector (€650), or more than €23 for workers with a salary of or more than €2,000.

From January 1, the bill sees the level established on June 1, 2020 being docked three percentage points, adding up to the payment of €750 million less by employers and employees per annum. This will ease the non-salary cost burden on the private sector and serve as an incentive for bolstering employment.

The total benefit for employers and employees starts from €20 per month for salaries of €650 and reaches €60 per month for gross monthly salaries of €2,000. The reduction of social security contributions will be horizontal, applying at the same rate to all salary workers in the private sector, whether full- or part-timers.

The draft law also lays out how the debts of enterprises and freelancers created during the first phase of the pandemic will be settled.

Meanwhile the ministry and the Single Social Security Entity (EFKA) are preparing for the payment of a fresh batch of retroactive dues payments up to the end of the month, starting next Tuesday with the payment of the main and auxiliary pensions of retirees insured with the former IKA-ETAM and with the former funds of the banks and OTE, whose social security numbers (AMKA) end in an odd figure.

According to Minister Yiannis Vroutsis, along with the December pension payments starting next week, the state will pay out the retroactive hikes to temporary pensions.