The Prime Minister’s announcement from the floor of the Parliament leads to an increase in the incomes of approximately 500,000 civil servants and pensioners, with an annual income of more than €12,000.
By Chrysostomos Tsoufis
The die is cast. What the government ministers presented until now as a big government goal or a big challenge, the prime minister from the floor of the Parliament turned it into a certainty. THE solidarity levy is abolished from the new year of 2023 and now Mr. Staikouras and Skylakakis must find €450 million – because according to their words there are none at the moment – as this is how much it costs to “match” the private sector with pensioners and the State regarding the abolition of the levy.
The Prime Minister’s announcement means increasing the incomes of approximately 500,000 civil servants and pensioners who have an annual income of more than €12,000.
The scale of the solidarity levy is as follows
- €12,001- €20,000 income – 2.2% rate
- €20,001 – €30,000 income – 5% rate
- €30,0001 – €40,000 income – 6.5% rate
- €40,001 – €65,000 income – 7.5% rate
- €65,0001 – €220,000 income – 9% rate
- >220,000 income – 10% rate
For example, a civil servant with a salary of €25,000 will have an annual benefit of €426 or €35.5/month. A pensioner of €17,000 will see an increase in income of €110 and a pensioner of €13,000 will see an increase of €22.
Double bonus for pensioners
However, pensioners will have a double benefit at the beginning of 2023. And this is because pension increases are unfrozen after 12, so the January pensions paid in December will be inflated. According to the law, the amount of the increase is determined by 50% of the sum of GDP growth and inflation. For example, if the country records a growth of 4% this year and inflation closes at 9%, the increase in pensions will reach 6.5%.
It should be noted, however, that the law does not stipulate that the increases must be horizontal, so they can be staggered to favor low-income pensioners.
Also about 850,000 retirees will see no increase as they retain a large personal difference. The difference will be reduced by the increase so that they are closer to their actual salary increase in the following years.
View the news feed and get the latest news.
