IKA, the largest Social Security Organisation in Greece, will report a deficit of €700m in 2011 if the average reduction of labour costs in private sector decreases by as much as 6%.
Nevertheless, Deputy Minister of Labour Giorgos Koutroumanis said that Greek government is not considering a reduction of pensions over the next 5 years. On the contrary, he admitted that pension costs are expected to increase by €1.2b in the next 4 years due to the sharply rising number of pensioners.
Labour Ministry has prepared a draft law about the Federation of Hellenic Information Technology and Communications Enterprises, which forces the employees to purchase stamps and aims to a new settlement of debts.
Giorgos Koutroumanis said on Tuesday that the ongoing recession, increasing unemployment and lowering of wages weigh on the insurance funds. He argued that each percentage point of increasing unemployment increases the losses of IKA by €300m or €450 with the benefits, while a reduction of earnings by a point causes losses of €115m.
The ministry introduces the so-called “labour card”, which as a way to fight contribution evasion. As an inducement, the ministry reduces the charges of enterprises by 10% for the first year.
The news regarding the decrease of spending on health are positive, as the there was a decrease of €1.77b healthcare costs.
Nevertheless, Deputy Minister of Labour Giorgos Koutroumanis said that Greek government is not considering a reduction of pensions over the next 5 years. On the contrary, he admitted that pension costs are expected to increase by €1.2b in the next 4 years due to the sharply rising number of pensioners.
Labour Ministry has prepared a draft law about the Federation of Hellenic Information Technology and Communications Enterprises, which forces the employees to purchase stamps and aims to a new settlement of debts.
Giorgos Koutroumanis said on Tuesday that the ongoing recession, increasing unemployment and lowering of wages weigh on the insurance funds. He argued that each percentage point of increasing unemployment increases the losses of IKA by €300m or €450 with the benefits, while a reduction of earnings by a point causes losses of €115m.
The ministry introduces the so-called “labour card”, which as a way to fight contribution evasion. As an inducement, the ministry reduces the charges of enterprises by 10% for the first year.
The news regarding the decrease of spending on health are positive, as the there was a decrease of €1.77b healthcare costs.
source: CAPITAL
