The bill for “Strengthening the income of employees, young people, family and work – Pension arrangements” of the Ministry of National Economy and Finance was submitted to the Parliament, with which, as stated by Minister Kostis Hatzidakis, 50% of the commitments of the government’s economic program are fulfilled.

In the text of the draft law submitted, the following basic additions and amendments are included, in relation to what was put in the consultation:

Particularly:

– The amount of DYPA funding is doubled by 375 million euros for the “My Home” program, with the commitment of the initial amount of funding.

-Regarding the 10% reduction of ENFIA for houses insured for earthquake, fire and flood, it is stipulated that the insurance must cover the total cost of reconstruction of the property, which cannot be lower than 1,000 euros per square meter. By joint decision of the minister and the administrator of AADE, the minimum cost can be revised. The provisions remain, according to which if the insurance is less than one year then the reduction of ENFIA is limited proportionally, as well as that in any case the insurance must have a duration of at least three months.

– Banks are exempted from the regulation which extends to legal entities the exemption from income tax of interest on bond loans and interest-bearing Treasury bills, which already applies to natural persons.

-Added a provision that provides for the possibility of using a digital signature on a recording surface (tablet) during AADE checks.

– It is envisaged that a higher salary scale will be awarded to salaried lawyers of the State who have completed postgraduate and doctoral studies, as is also the case for other civil servants.

– The completion of the maintenance and support of the Navy’s submarines at the Elefsina shipyards is facilitated with a short extension of the contracts of the personnel employed there.

-A financial aid of 100 to 150 euros is granted in the context of social tourism, to support the tourism of northern Evia.

-Regulations of the Ministry of Development for the reduction of unfair profit phenomena are extended, in the context of the gross profit margin, as well as the “household basket” until 12/31/2023.

In detail, the submitted bill provides for the following:

*The amount of DYPA funding is doubled by 375 million euros for the “My Home” programwith the commitment of the initial funding amount.

*In relation to the 10% reduction of the ENFIA for the residences insured for earthquake, fire and flood, the provision submitted provides that the insurance must cover the total cost of reconstruction of the property, which cannot be lower than 1,000 euros per square meter.

By joint decision of the Minister of Finance and the administrator of AADE, the minimum cost can be revised. In the registered bill, the provisions remain according to which, if the insurance is less than one year, then the reduction of ENFIA is limited proportionally, as well as that in any case the insurance must have a duration of at least three months.

*Banks are excluded from the regulation which extends to legal entities the exemption from income tax on interest on bond loans and interest-bearing promissory notes of the Greek government, which already applies to natural persons.

*A provision has been added which provides for the possibility of using a digital signature on a recording surface (tablet) during the audits of the Independent Public Revenue Authority.

*It is provided for agrant of a higher salary scale to salaried lawyers of the State who have completed postgraduate and doctoral studiesas also applies to other civil servants.

*The completion of the maintenance and support of the Navy’s submarines at the Elefsina shipyards is facilitated with a short extension of the contracts of the personnel employed there.

*A financial aid of 100 to 150 euros is granted in the context of social tourism, to support the tourism of northern Evia.

*Regulations of the Ministry of Development for the reduction of unfair profit phenomena are extended, in the context of the gross profit margin, as well as the “household basket” until 31/12/2023.

The bill also includes interventions in wages, taxes and aid totaling 4.4 billion euros for the next four years, with which:

*The salaries of civil servants will increase from 1/1/2024, for the first time after 14 years. A combination of interventions is foreseen that includes a horizontal increase of 70 euros per month for all civil servants of both the Uniform and Special Salaries, an increase of the family benefit by 20-50 euros per month, depending on the number of children, as well as an increase of the position of responsibility allowance by 30%. In addition, the salaries of University students, border allowances and special working conditions for the officers of the Armed Forces and Security Forces, as well as overnight and mileage allowances for all employees, are increasing. The average annual benefit amounts to 1,292 euros gross or 800 euros netwhile if additional increases or exemptions applied from 2023 are taken into account, the average benefit increases to 2,084 euros gross or 1,476 euros net per year.

*The tax-free allowance for taxpayers with dependent children is increased by 1,000 euros, through the adjustment of the tax deduction. For example, the benefit for families with two children is 220 euros per year.

*The Market Pass is extended until October. Applications will be considered on the basis of incomes in 2022. The income and asset criteria remain the same, as does the amount of the aid: from 22 to 100 euros per month, i.e. 66 to 300 euros for the three months of the extension. It is noted that those who had received the previous aid do not need to submit applications again (they will be examined ex officio). Also, those who received the previous aid via digital debit card can, as long as they are still eligible, collect the new aid on the same card, which remains activated until December 31, 2023.

*The Youth Pass is introduced for 18 and 19 year oldswho from this year will receive 150 euros on a digital debit card, for making purchases or receiving services from businesses active in the fields of culture, tourism and transport.

*Former EKAS beneficiaries are permanently exempted from participating in the cost of purchasing medicines.

*There is a ceiling of 3% on the rent increases paid by the State for its service accommodation for 2023.

*The pensions of 9,500 beneficiaries of the special “small public” category of the State General Accounting Office are increasing. The majority of them will receive a 7.75% increase from 1/1/2023, while special categories of pensioners whose salary is linked to the energy salary are granted proportional increases.

*The quantification of political party programs by the Hellenic Fiscal Council is established.

*An additional budget of 700 million euros is introduced for 2023, in order to cover the costs related to the aids included in the bill, which will be paid this year (market pass, youth pass, salary increase for faculty members), with the self-governing elections, with the needs of the Ministry of Health and with the costs of public bodies due to the energy crisis.

The Minister of National Economy and Finance, Kostis Hatzidakis, made the following statement: “Twenty days after being sworn in, the government submits to the Parliament the first bill of the Ministry of National Economy and Finance which fulfills 50% of the commitments of its economic program. It is a change of paradigm in relation to negative practices of the past and a continuation of the “we said it – we do it” direction, which was drawn up already in 2019. With this bill, public servants, young people and the Greek family are basically supported for reasons that had already become clear since the pre-election period. And all this, always taking into account the endurance of the budget, because our goal always remains the combination of our social initiatives with fiscal stability”.