The Labour Ministry has finalized its €2b interventions, which would burden pensioners. The last package of measures, that was decided in fear of the non-disbursement of the fifth aid tranche, is not related just to “privileged” pensioners.
The measures have been already clarified by the leadership of the Ministry of Labour and would lead to lowering incomes, significant reduction in pensions by 15%, and also demise of social structures, cutting of healthcare costs and decrease of overall welfare benefits, valued at €9.5b.
In 2011, the reduction in main and supplementary pensions exceeds €250m, as the measure will apply no later than September. For the 2012-2015 period, the government expects to save a total amount of €2.1b.
Moreover, measures decided for 2011:
-Increase of special contribution by 6%-14% for the pensioners who receive more than €1,700.
-Additional special contribution for pensioners who are under 60 years old and receive more than €1,700. On average, the additional contribution will be 8%.
-Additional special contribution to supplementary pension, which exceed €300.
-Reduction in gratuity for the public and private sector. There are suggestion for reductions of 10%-30%. This is the only measure that was not finalized on Monday, as the services of the Labour Ministry examine all alternatives.
-Application of a cap for all pensions.
The ministry is also targeting on the so-called social policy, as benefits of €345m would be cut over the next 7 months. The benefits of the housing organization would be limited, new income and property criteria would be applied, while the conditions for allowances would be tighter. Similarly, tougher conditions would be applied also for the unemployment benefit, with the Deputy Minister committing that seasonality would be supported.
The ministry expects about €70m in 2011 through the increase of contribution by 1% in the private sector, apportioning the burden by 0.5% to employers and employees. A special contribution of 1% would weigh employees in the public sector, amounting to €300m annually.
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