By Chrysostomos Tsoufis

Two in 10, who currently take one of the allowances of the Minimum Guaranteed Income, children or housing, they are faced with a reduction in what goes into their pocket or even a complete loss.

To the person in charge Ministry of Social Cohesion and Family they ran an audit of the benefits and found significant distortions, the correction of which – from the beginning of 2025 – will lead many to be excluded from these 3 very important benefits that cost the state budget €1.9 billion.

On the contrary, of course, 80% have nothing to fear. Many, in fact, will see their pay rise following the changes being pushed through and presented in full at September’s cabinet.

Broadly speaking, the three major changes to these allowances are as follows:

-The amounts are increasing
-Income and asset criteria are introduced in everything now. Where there were, they are improving
-The criterion of exempting a percentage of the income from salaried work from counting towards the income limits is introduced.
20% in child and housing allowance
30% of the Minimum Guaranteed Income

The objective is obvious, that the allowance does not act as a deterrent to finding a job

Minimum guaranteed income

Based on the information available to us, the Minimum Guaranteed Income is increasing for the second time from December 2023 (from €200 to €216) from €216 to €254/month which is also the upper limit for a single-person household . The surcharge for each child also increases from €54 to €75.

There will also be an adjustment of the income criteria, as at the moment the six-monthly income cannot exceed the amount of €5,832, regardless of the number of household members. “Corrections” will also be made to the property criteria.

Housing Allowance

It currently stands at €70 and is increased by €35 per additional household member up to €210. The income criterion starts from €7,000 for a one-person household and is increased by €3,500/additional member up to €21,000.

Now a limit will be set above which the basis of the allowance (ie without the children’s increase) will rise to €75, while below it it will reach €125

Child benefit

With the current system, it includes 3 income categories:

-Up to €6,000
-€6,001 to €10,000
-€10,001 to €15,000

The amount in the first tier increases from €70 to €75 for the first and second child and to €150 from €140 for the third and each subsequent child.

The second and third categories are consolidated and the allowance rises from €28 to €45 for the first and second child and from €56 to €90 for the third and each subsequent child.

Property criteria for movable and immovable property will also be imposed, which currently do not exist.

Thus, a couple with 2 children and an annual income of up to €6,000 will now receive €413 from €315, i.e. an additional €1,176 on an annual basis.

These changes cost as they are up to €70m to the public coffers, but they are balanced by the additional income brought by the presumptive taxation of the self-employed.