Keeping the reduced insurance contributions and in 2022, it will result, according to what the Minister of Labor said Kostis Hatzidakis employees with salaries from 700 – 2,000 euros, to have an annual benefit from 160 to 691 euros per year.
Kostis Hatzidakis specialized at noon on Thursday (16.09.2021) what the Prime Minister announced from the TIF, regarding the reductions in the insurance contributions for the employees.
Also, according to the Minister of Labor, those paid the minimum wage – from the reduction of taxes, the reduction of contributions and the increase of 2% – will have, depending on the three years, an annual benefit from 305 to 533 euros.
At the same time, there are seven additional programs with a total cost of 1.183 billion euros, which aim, according to the leadership of the Ministry of Labor, to increase the recruitment of young people and the creation of jobs in general, in order to reduce unemployment and support employment.
These are the programs announced by the Prime Minister Kyriakos Mitsotakis from the TIF and specialized by the Minister of Labor, Kostis Hatzidakis.
The minister presented the official data of unemployment, noting that since the assumption of government duties in July 2019 until today, there is a de-escalation of the order of three percentage points. “Nevertheless, the percentage of 14.2% that was announced for July 2021, is a high percentage, while the percentage of unemployed young people is extremely high.”
The seven programs
Now in detail the seven programs that are immediately implemented or will be implemented at the beginning of the year provide the following:
- The “first stamp” concerns young people up to 29 years old without previous service, who undertake work. These young people will be supported for a total of six months by the state with 1,200 euros upon their first recruitment. The 600 euros will be given to employers and the remaining 600 euros to young people. This amount will be in addition to their salary. For part-time work corresponding to at least 50% of the full-time job, half of the amount will be given.
The cost of the program is a total of 42 million euros for 2022 and 2023, while it will include a job retention clause for the companies that will implement it. This program can be implemented in conjunction with the program for subsidizing insurance contributions, as well as with other programs implemented by OAED.
- The COOPERATION program is extended for another three months – until the end of the year. The program ended at the end of September. It enables the employer to employ the employee 50% of the time and the state undertakes to cover 60% of the wages. The employer pays the contributions. The program was implemented during the pandemic. So far, 121 million have been paid and with its expansion, an additional 50 million euros will be given.
- From 2022 the subsidized new jobs through programs of the Ministry of Labor for the subsidy – for six months – of the total non-wage cost (insurance contributions), increase from 100,000 to 150,000. These programs cover insurance contributions for an additional 50,000 jobs in all sectors of the economy (a total of 150,000 jobs). The program includes special care for the long-term unemployed who are subsidized with an additional 200 euros. A total of 80,000 unemployed people have found work through the program, while 55,000 people are currently using the program.
- The 3% reduction in insurance contributions will apply until the end of 2022. The cost of this measure reaches 816 million euros. The decrease is divided into 1.79 percentage points in employer contributions and 1.21 percentage points in labor contributions.
- An employee with a gross salary of 1,000 euros (847 net) has an annual benefit of 132 euros from the reduction of insurance contributions.
- An employee with a gross salary of 1,200 euros (1016 net) has an annual benefit of 207 euros (158 euros from the reduction of insurance contributions and 49 euros from the “freeze” and in 2022 of the solidarity contribution.
- An employee with a gross salary of 2,000 euros (1693 net) has an annual benefit of 604 euros (243 euros from the reduction of insurance contributions and 461 euros from the solidarity contribution.
It is noted that the reduction of insurance contributions burdens the budget and not EFKA and OAED. The remunerative benefits of these two Organizations are not affected at all.
- In December, all beneficiaries of the Minimum Guaranteed Income will be given twice the amount they received. These are 257,000 households or about 500,000 people. For each single-person household there is an amount of 200 euros per month which increases by 100 euros for each additional adult and by 50 euros for each child. The cost of the measure is 64 million euros.
- Special purpose compensation – 534 euros per month – for an additional two months for artists (for the months of June and July) and guides (for the months of May and June) The total cost of the extension of the measure is 30 million euros.
- The program of subsidizing vacancies in culture is extended until the end of 2021. Total cost 22 million euros.
The article Kostis Hatzidakis: 160 to 691 euros per year the profit of the employees from the reduced insurance contributions published in NewsIT .