Developments with the extraordinary allowance for pensioners 2024-07-14 14:13:49

Ilias Tsounis, press representative of e-EFKA, expressed the assessment that either the amounts will be expanded or the conditions for the extraordinary allowance that pensioners who have a personal difference will receive this year will be expanded, speaking on Proto Program 91.6 and 105.8.

The above estimate, he explained, results from the fact that last year regarding 105 million were given and at the moment there are 250 million available due to the extraordinary taxation on the refineries. In any case, he emphasized, this is social policy.

“At the moment we are not yet ready to say what the amount will be for each pensioner and what the conditions are. I remember that last year it was 100 to 200 euros for pensioners who had more than 10 euros of personal difference and total pensions up to 1,600 euros. And the amount varied depending on the amount of the pension from 100 to 200 euros,” said Mr. Tsounis.

“I should add that last year an extraordinary allowance was given in addition to the personal difference allowance, of the order of 150 euros for low pensioners, i.e. for those with a pension of up to 700 euros. We’ll see. My feeling is that we will have something similar this year as well,” he added, noting, however, that these are decisions of the Ministry of Finance.

According to Mr. Tsounis’ estimates, by 2027 the personal difference will have been reduced to zero if the economy continues to prosper, has growth rates and at the same time pensions increase, as these two are linked. Regarding the debts to the insurance funds that have now been consolidated, to the Unified Electronic Social Security Agency, these start even before 2010 and total around 48 billion, roughly as much as the state budget for one year, Mr. Tsounis emphasized .

“The amount owed by various debtors is too large, whether they are smaller amounts. Someone who may owe two installments as a freelancer of around 400-500 euros, even some companies, some legal entities that may have closed and “tied” the insurance funds, the public fund with millions of euros as an insurance contribution. EFKA in collaboration with AADE sends an updated list. It is updated every year by the Insurance Debt Collection Center at AADE with the major debtors. Large debtors are those who owe more than 150,000 euros, either natural persons or legal entities. EFKA sends this list to AADE, so that it is made public and everyone knows who owes a debt. This is also a measure of pressure. (…) To a large extent, it “catch”. It’s been happening for the last five years. We have seen an improvement in collectability because of this, because many may have been negligent, it may be a large company whose debts have escaped a little and it is not a first priority, but it becomes a first priority because of the disclosure of the company’s VAT number” he said characteristically .

He noted, however, that there are some exceptions. In other words, debts that are regulated or uncollectible or under suspension of a court decision or from deceased persons or minors are not made public.

As far as working pensioners are concerned, Mr. Tsounis spoke of a win-win law for all sides, as the declarations of employed pensioners on the efka.gov.gr electronic platform have quadrupled.

185,000 retirees have so far declared themselves to be working as either freelancers or salaried workers, a 400% increase from 2023 when working retirees who chose to declare themselves working were 35,000.

“The truth is that there has been a huge increase in retirees choosing to return to work either as freelancers or as employees. (…) So one understands that this is one of the cases where the state legislates a provision which is embraced by the citizens because they perceive it to be favorable”, stressed Mr. Tsounis.

“The 30% penalty on the pension for those pensioners who chose to work was with the Brutsis law. With the Katrougalou law it was 60%. So one understands that there was an improvement with the Brutsis law in 2020 because the 60% cut became 30%, so a small incentive was given to retirees to enter the labor market. However, it is now zero. So the incentive for the scheme is favorable for working pensioners. Let me say here that it is one of the few cases where a provision, a law is a win win for all sides. On the one hand, for retirees because they can increase their incomes, on the other hand, for businesses where they can “exploit” all this accumulated experience carried by our fellow citizens who are not averse to work, they are people who carry experience, they are people who can be excellent executives for business. So one can see that it is to the benefit of both the pensioners themselves because they increase their incomes, as well as businesses and the public treasury because these people pay a special tax on their salary, as long as they are employed” concluded the press representative of e-EFKA.

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