By Chrysostomos Tsoufis

The mini-insurance was presented and approved almost a month ago in the October 18 cabinet, but since then neither voice nor hearing about its progress. is informed that, if today the tax bill is posted for public consultation, then the “synastry” will be ideal so that the labor ministry’s bill will take the same path by Friday. Any “delay” from the finance ministry will push the mini insurance to next week.

The bill provides for the granting of the personal difference allowance to approximately 750,000 pensioners with pensions up to €1600 as follows:
-€200 for pensions up to €700
-€150 for pensions from €701 to €1100
-€100 for pensions from €1101 to €1600

Other settings include:

WORKING PENSIONERS: From 1/1/2024, the 30% penalty on the pensions of working pensioners is abolished and replaced by a 10% contribution on the annual remuneration from their work. For freelancers the reservation will amount to 50% of the insurance class they have chosen. The regulation also applies to people with disabilities.

PENSION OBLIGATIONS LIMIT : The debt limit up to which freelancers and self-employed persons can apply for retirement is increased from €20,000 to €30,000, provided that bank secrecy is lifted. After the decision is issued and until the debt is reduced to €20,000, the pensioner will receive 40% of his pension as the remaining amount will go towards debt reduction. As soon as the debt recedes from 20,000 it will be regulated in 60 installments as provided by the current law. For farmers, the debt limit increases to €10,000

GRANT OF SUPPLEMENTARY PENSIONS: A fast track method of awarding is adopted and after the passing of the bill, every insured person – regardless of the fund he belongs to – who completes 15 years of insurance – even consecutive – will receive a supplementary pension. It will also apply to those insured with debts.

MATERNITY ALLOWANCE : Increase and extension of the maternity allowance for self-employed and farm mothers to the amount of the minimum wage for 9 months.

WELFARE BENEFITS: Payment of DYPA and OPECA benefits with an immaterial prepaid card with an obligation to spend in cash only up to 50%. Disability benefits are expected to be deregulated.

2/3 of the bill has to do with professional insurance funds, the establishment of which is facilitated while they are fiscally assimilated to what applies to private insurance with tax withholding scales. The objective of the Ministry of Labor is to give mainly lump sum pensions and that is why the taxation of pensions is 50% of that of lump sums. And of course, the longer you leave the money in the fund, the lower the tax rate. Taxation is NOT retroactive, everything that already exists in these funds remains as is:

Insurance Term One-off Tax Pension Tax
0-5 years 20% 10%
6-15 years 15% 7.5%
16-25 years 10% 5%
>25 years 5% 2.5%