Hatzidakis: The digital work card brings a reduction in insurance contributions

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Speech of the Minister of Labor and Social Affairs at the conference of the Hellenic-American Chamber

“The implementation of the Digital Labor Card will help us to reduce insurance contributions, because by dealing with delinquency, more insurance material will be included in the scope of EFKA. Thus, in addition to the reduction of contributions by 5 percentage points that has already been made, we will be able to proceed with an even greater reduction. This is very good news for both employees and consistent employers who will be rewarded by paying lower contributions.”

This was pointed out today by the Minister of Labor and Social Affairs, Kostis Hatzidakis, speaking at the conference of the Hellenic-American Chamber of Commerce, in the context of a discussion with the president of the Chamber, Nikolaos Bakatselos.

“Obviously, we are not going to implement the Card in the same way everywhere, nor are we under any illusions about the size of the project,” the minister added. “That is why we are proceeding gradually and consensually. We apply the model according to the particularities of each sector and based on the proposals that will arise from businesses and employees”.

As he said, the dialogue will start immediately with security companies and insurance companies, followed by DEKO and industry and then tourism and restaurants.

“The Digital Card is considered a pioneering measure even by EU standards and will certainly help to have a guarantee of working hours and overtime for workers as well as fair competition between businesses. In 2021, 38,000 workers were checked by the Regional Insurance Control Centers and 8,000 were found outside of the declared working hours. It was a permanent request of the GSEE, almost all parties voted for it in the Parliament. We are not asking for anything more, we are simply asking for the implementation of the law”, he noted.

Answering questions in the context of the debate, Mr. Hatzidakis emphasized, among other things:

  • For the pending pensions: EFKA is getting back to normal. For new applications, pensions are awarded on average in 60 days compared to 74 in Germany. After solving the problem of the outstanding main pensions, the process of liquidating the ancillary ones has already started. It is a matter of a few months before it is completed.
  • About TEKA: In the new supplementary insurance fund for young people (TEKA) many more people have joined than even the ministry itself estimated, as due to the growth of the economy many more people entered the labor market for the first time. “At the beginning of the year we estimated that 60,000 would enter, in the summer we expected 80,000 and now it seems that we are going for over 140,000. This is a result of the government’s overall interventions in the economy and is not limited only to the youth as unemployment has decreased overall from 17.5 to 11.6%,” the minister said.
  • On pension increases: “The 7.75% increase in pensions that will be given in January results from a mathematical formula voted on by SYRIZA and is the highest percentage that can be given. One in two pensioners will see at least an additional pension next year.”
  • Regarding bilateral international agreements: Negotiations are underway for the signing of new bilateral social security agreements, which serve both Greeks abroad and foreigners living in our country.
  • For the codification of the legislation: The codification for individual labor law has been completed, the collective one follows, while the codification of the insurance legislation is also progressing and is estimated to be ready in the summer.

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