Pensioners are one of those social groups that will see a significant improvement in their incomes from January 1, 2024
Pensioners are one of those social groups, who will see a significant improvement in their incomes, from January 1, 2024, while a significant part of them will be beneficiaries of the new market pass cycle, which will be applied for the period August – October of 2023.
The government has strategically decided that one of the social groups in need of support is pensioners, who after a long period of salary reductions and then their freezing, have seen them – most of them – increase since the beginning of this year to a percentage of 7.75 %.
Let’s look in detail at all the interventions that have been announced by the government and concern this particular social group, whether exclusively or concerning them as well.
1. Market Pass: will be granted for the months of August to October and concerns the vast majority of citizens and therefore also pensioners. The criteria remain the same as the previous program. Those who had already made a declaration do not need to submit it again. The system will judge whether they remain beneficiaries based on the incomes of 2022, that is, with the declarations of 2023. Those who had not received the benefit will have to apply for it on the platform that will open at the end of August.
2. Tax-free increase: Income tax is reduced for taxpayers with children, for incomes earned from 2024, for which the tax-free threshold is indirectly increased. Specifically, with the adjustment of the tax deduction, the tax-free amount increases by 1,000 euros for families with children and is structured as follows: from 9,000 to 10,000 euros for families with 1 child, from 10,000 to 11,000 euros for two children, from 11,000 to 12,000 for three children coke. from 1/1/2024. Beneficiaries are 1.34 million taxpayers (with more than 4 million family members) with dependent children.
3. Medical expenses: From January 1, 2024, the zero participation in pharmaceutical expenses for pensioners from whom the EKAS was gradually cut during the period 2016-2019 is fixed.
4. Reduction of ENFIA: From 2024, a 10% reduction applies to the residences of natural persons insured for earthquake, fire and flood. The discount will be calculated on the total amount of the tax and will be given proportionally for the days of the year that the residence is insured. The insurance must cover the entire value of the property on which the ENFIA is calculated.
5. Increases to 9,500 pensioners: This is an increase in pensions for 9,500 beneficiaries who belong to the special “small public” category of the General State Accounting Office (GLA). It mainly concerns retired service sufferers, victims of terrorist attacks, artists, writers, etc. The majority of them (about 8,000) will see a 7.75% increase in their pensionable earnings, while the rest will see increases of more than 7.75% retroactive to 2017.
Measures to come
1. Pension increases: At the end of the year will come the new increase in pensions which is now permanent. The new pension increase is expected to be close to 3.4%, while an additional increase of 0.3% may arise due to a deviation in the 2022 data. The corrective increase will be determined after the summer based on the final data for course of the economy to be validated by Eurostat. Cumulatively these two increases will reach just under 4%, while their return on pensioners is determined around January-February 2024
2. Personal difference allowance. The prime minister has announced that in 2024, too, an allowance will be given to those who, due to personal differences, will not receive an increase in their pension. According to estimates, 100,000 to 150,000 pensioners will cancel the personal difference every year for the next few years. Therefore, those who zeroed out the personal difference this year will see a larger net increase in 2024. At the same time, the finance staff has pledged to continue to support pensioners with a personal difference until it is zeroed out. The measure is expected to become more permanent with the resumption of the payment of the personal difference allowance (200-300 euros) to those who lose or receive a smaller increase in 2024 as well.
3. Changes to the so-called special solidarity levy: The reduction of the withholding rate of the Special Solidarity Levy which finances the AKAGE (Generations Solidarity Insurance Fund) account is being promoted, in which it is estimated that around 30 billion euros have been collected. The special solidarity levy was imposed in 2010 and is paid (to the account of the Social Insurance Agency) with the aim of covering deficits of the main pension branches of social security bodies. This levy is imposed on pensions over 1,400 euros on a staggered basis and ranges from 3% to 14%.
4. Working pensioners: Those pensioners who are working will no longer lose 30% of their pension, as is currently the case from 1.1.2024. According to the information, but it remains to be seen, they will receive the entire pension and as a “penalty” they will be subject to a small reduction of the legal remuneration they will receive from their work. The amount of this special contribution – which will be collected by the tax office and will go to EFKA – is determined at 10% to 15%.
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