The Greek government has unveiled a series of economic support measures, including a 2.4% pension increase effective January 2024 and extraordinary financial aid for vulnerable groups.
Labor Minister Niki Kerameus outlined the initiatives, which aim to ease financial pressures on pensioners, employees, and low-income households.
All pensioners will receive their increased January payments by December 23, marking a cumulative pension growth of 13.6% over the past two years.
Ms. Kerameus also announced a one-time, tax-free allowance of €100 to €200 for pensioners with a "personal difference" exceeding €10, applicable to pensions below €1,600. This extraordinary support will be disbursed before December 20.
In a bid to reduce payroll costs and boost employment, social security contributions will be cut by one percentage point starting in January 2025, bringing the total reduction to 5.5 percentage points since 2019. This policy has already contributed to the creation of 500,000 jobs over the past five years, according to Ms. Kerameus.
To correct a longstanding issue affecting pensioners, the government will adjust the solidarity contribution thresholds to align with annual pension increases.
This ensures retirees won’t face unexpected reductions due to income bracket shifts caused by pension growth.
Additionally, a €200 solidarity grant will be distributed this December to individuals in vulnerable groups, including uninsured seniors, persons with disabilities, and foster parents of children in disability care programs.
Ms. Kerameus hailed these measures as a testament to Greece’s economic recovery and the government’s commitment to social equity. "These steps reflect the progress we have made as a nation and our dedication to ensuring fairness and opportunity for all," she said.
The initiatives underscore the government's focus on fostering economic stability and addressing the needs of its citizens amid ongoing global challenges.