Clarifications from the Deputy Minister of Labour
“On April 1, 2024, the 4th consecutive increase in the minimum wage will take effect, which will now exceed 800 euros from 650 euros in 2019” states the Deputy Minister of Labor and Social Security, Panos Tsakloglouin an interview with APE-MPE.
As he estimates, the positive growth rates of recent years, combined with the dynamics of the country’s economy for the coming years, as recorded by international houses and organizations, make possible the target for a minimum wage of 950 euros and average salary at 1,500 euros, until the end of the four years.
Referring to the Auxiliary Capitalization Insurance Fund (TEKA), Mr. Tsakloglou notes that the information campaign, implemented by TEKA itself, seeks to bring to the fore the benefits of the capitalization system to young people, who are also the direct stakeholders, as well as and to employees who have the possibility to voluntarily join the new Fund.
“A significant part of TEKA’s reserves will be directed to investments in Greece”
“With a central message of ‘Invest today in your tomorrow’, it highlights the value of savings as a key means for financial security in the future. Key features of the new Fund are shown and explained, such as the existence and possibility of checking the individual account of the insured and the state guarantee provided, with the aim of encouraging/mobilizing young people to act for their future and participate/join TEKA, providing the necessary information and tools for a financially secure retirement”, the Deputy Minister of Labor points out.
At the same time, he emphasizes the benefits that will arise for the Greek economy, as, as he states, a significant part of TEKA’s reserves will be directed to investments in Greece, which will give a growth boost to the economy, increase productivity, create more and better paid jobs and will promote the standard of living and well-being of citizens.
In response to a question about how the application of the declaration of work by working pensioners is progressing, Mr. Tsakloglou underlines that, according to EFKA data, around 43,000 working pensioners have registered on the platform so far, while corresponding numbers in the past did not exceeded 35,000 per year.
Among other things, the Deputy Minister of Labor analyzes the new provision of the Ministry of Labor that “unlocks” retirement for thousands of debtors e-EFKA and adds that the issuance of the necessary Joint Ministerial Decision is expected and, at the same time, the necessary adjustments are being made to the digital systems of the e-EFKA for the submission of the relevant applications, as well as the recovery of the necessary data, through an interface with the banking institutions.
Mr. Tsakloglou also refers to the stage at which the preparatory steps are for the implementation of a single regulation of insurance and benefits for all the Funds included in the e-EFKA.
In this context, he recalls that, last November, a working group was set up, “with the aim of drawing up a conclusion in the direction of unifying the rules in a fiscally neutral way. For all the former Funds, the conditions for inclusion in the insurance for cash benefits, the duration of coverage, the amount of benefits, the range of beneficiaries, the granting procedure, as well as any other necessary issue were examined.
The recording of the existing situation has already been completed, the differences between Funds have been highlighted and the financial analysis of alternative unification scenarios has been completed.
At the moment, the working group is nearing the end of its work and drawing up the text of the conclusion, which will form the basis for our legislative interventions.”
Finally, the Deputy Minister of Labor adds that the special provision of maternity protection to self-employed, self-employed and farm mothers is a new regulation and, therefore, a platform was created from scratch to support this innovation. According to his estimation, the payment of benefits will start very soon, but he is not yet able to specify the exact date.
