Despite the difficult circumstances, not only fiscal ones, this year’s presence of the prime minister at TIF hid a measure of surprise. Kyriakos Mitsotakis announced from the podium of the 87th TIF the thawing of the three years from new year 2024. The three years had been frozen since 2012 and would be unfrozen by law once unemployment fell below 10% on an annual basis, expected sometime in 2025 at best.

According to an information note from the Ministry of Labor, the recalculation of the three years concerns all increments (3 years to the minimum wage or 3 years or 5 years to other scales defined in active collective agreements) to the earnings of all employees in the private sector. But there is a distinction

— For those who entered the labor market after February 14, 2012, the building of the allowance starts from the beginning from the new year. So someone now paid the minimum, from 2028 who has completed three years with the same employer will see a 10% pay rise

– For those who entered the labor market before 2/14/2012 and had 2 years of experience, in 2025 they will see a 10% increase

If they had 5 years of service in 2025 they will see a 20% increase and 30% if they had 8 years of service.

The Ministry of Labor emphasizes that in the event that in the period 2012-2023 any employee had seen increases that exceed the current ones, then there will be an offset. In addition, between 14.2.2012 and 31.12.2023 there will be no claim for retrospective searches of various types.

The prime minister clarified the landscape and the way the natural disaster reserve will be strengthened. This “piggy bank” already has €300m which from 2024 will be doubled through the increase of the daily accommodation tax from €1 to €6 mainly for luxury hotels.

In the “new” measures also its 2nd extension market pass until the end of the year, but only for the residents of Thessaly and Evros.

The incomes from 3 or more short-term rental properties will now be subject to VAT as well as all fees charged by hotels and rooms for rent.

The personal difference allowance it will be given a few days late so that the expenditure can be registered in the 2024 budget.

The Prime Minister’s speech, as announced, also contained a series of measures for combating tax evasion:

-Connection of 450,000 cashiers with POS by spring 2024

-Expansion of electronic shopping in retail. By mid-October a decision is expected that will make the use of POS mandatory in 150,000 KAD such as taxis, kiosks, insurers, open-air markets.

– Abolition of cash in the purchase and sale of real estate

-Routing of digital invoices. The declared income cannot fall short of what is stated in the e-books

-Routing of digital consignment note from January

-Disbursement of most welfare benefits through credit cards

– Doubling the fine to €200 for cash transactions over €500

Among the announcements and interventions to strengthen competition between banks through:

-Possibility of granting loans to non-banking entities as well

– Continuation of the Hercules plan to reduce bad loans

-Abolition of the independent taxation of government bonds

– 50% tax reduction in financial transactions

-Highlighting the IRIS service that enables daily transactions of up to €500 without bank fees.

Of course, Kyriakos Mitsotakis could not fail to mention the measures already passed or the announced measures that will begin to be implemented from 1/1/2024 with the aim of income enhancement:

-Average annual increase of €1,500 for 660,000 civil servants

-Increase of tax-free €1000/child for 1.34 million families

-A new increase in the minimum wage from April 2024

– New increase in main pensions from 1/1/2024

-Nilization of participation in pharmaceutical expenses for 200,000 former EKAS beneficiaries

– The abolition of the 30% penalty for working co-employees

– 8% increase in the Minimum Guaranteed Income

-Youth Pass €150 to 200,000 18- and 19-year-olds

-Doubling the budget for the “My Home” program

The next days the Minister of Development and Trade Kostas Skrekas will announce measures so that remain constant or decrease where possible the prices of the products.

Also the next period will the special tax on agricultural oil is returned. The heating allowance will normally be paid with an emphasis on families with children and there will be special care for the vulnerable in terms of the electricity bill.