The 1% contribution of civil servants to be abolished – What changes for working pensioners

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All the changes brought by the new bill that the Ministry of Labor will introduce to Parliament at the end of September

By Chrysostomos Tsoufis

In the past it will be 1% memorial fee which was imposed on public servants in 2011 according to the Ministry of Labor bill, which is being formulated with the aim of coming to Parliament at the end of September. The abolition of the levy will also be a harbinger of the great relief of incomes that will come with the abolition of the solidarity levy from the New Year of 2023.

The bill would also end the holdover of thousands of policyholders—the vast majority of them self-employed—who they can’t retire due to debt.

In full compliance with the decision of the Supreme Court regarding the unconstitutionality of the provisions of the Katrougalou Law, the relevant regulation will provide reducing the statute of limitations for debts to EFKA by half, i.e. in the 10 out of 20 years that applies to many funds today. This will facilitate the approximately 150,000 who are at the door of retirement but cannot….cross it because they have debts that were born before 2011. It may even be foreseen that from 2027 the limitation period will be further reduced to 5 years.

At the same time, an imbalance in relation to the will be corrected permanent settlement of debts to EFKA and these to the tax office. For 2 years now, the regulation to the tax office has been in 24 installments, while the installments to EFKA remain at 12. So there will be harmonization with what applies in tax law and therefore all 48 installments will be valid for emergency cases. It is recalled that the debts to EFKA have exceeded 43 billion. euro.

The bill will also attempt to do so proportional penalty for working pensioners who see their pensions cut by 30% even if they work 1 day in the month. The proposed regulation will reportedly provide for the penalty will be scaled according to the days of employment. 5 days mean a 5% reduction in pension, 15 days result in a 15% penalty and so on.

Finally, they will be included in the bill improvement provisions for the enlisted men’s insurance, while tour guides will also be included in the list of those who are required to submit an Analytical Periodic Denunciation. The passing of the law is expected in early October.

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