Social Security

Over one million of self-employed are on high alert after the announcement of changes in the social security contributions according to the new draft law on social security system reforms.

Even those who declare a 20,000euros annual income, they will be called to pay higher contributions to the insurance organization for the self-employed (OAEE).

While thousands of pensioners are trying to realize that their pension will not exceed the amount of 600 euros with poverty line set at 665 euros, Labour Minister Giorgos Katrougalos makes great efforts to convince Greek citizens that it is not true that there would be huge pension cuts accusing opposition of telling lies to the people.

The draft law on social security reform was presented on Monday to the political leaders by Labour Minister Giorgos Katrougalos and then sent to the Institutions to be reviewed. Therefore, a tough month of negotiation talks is expected until we see the final law on social security reform which will be tabled to Parliament for approval.

The Turkish state has announced it would give employers 110 Turkish Liras per employee to decrease the burden of the minimum wage raise, while it will also tax around 99 liras per employee, in effect only slightly decreasing businesses' burden. 

The government’s next steps were discussed during a meeting between ministers and associates, chaired by Prime Minister Alexis Tsipras. Sources state that Tsipras may call a meeting on Wednesday to discuss government planning. Issues focused upon during Tuesday’s meeting included the following:

A man, aged 50, was in the center of Athens on Monday morning holding a chainsaw. He demanded to meet with the chief of the social security for agriculture (OGA) because he is having difficulties with his father’s pension subsidy.

The Minimum Wage Determination Commission will meet on Dec. 2 to discuss the planned rise in the wage of around 6 million workers in Turkey.

Hundreds of thousands of Greek pensioners awaiting their monthly retirement benefits are left stranded without funds that they are eligible for. There are currently 330,000 pending pension requests for main and auxiliary pensions and 61,000 lump sum payments outstanding. Social Security funds, however, are unable to proceed with their files.

Greek fiscal targets will not be met unless deep cuts are made to pensions, even those that are lower than 1,000 euros per month.

Reforms to social security funds are sowing the seeds of panic to beneficiaries. The Labor Ministry has yet to provide its conclusions regarding the future for Greek pensioners, but there are a number of issues up in the air. These include:

– Pension rates, the new index to be created and the size of the slashes that are unavoidable