Rethinking Family Allowances: Transformative Shifts for Households with Three Kids

In the briefing, Sofia Zaharaki announced large increases in the Minimum Guaranteed Income and for the birth of children, as well as an increase in the housing allowance. Among the initiatives he presented was a new website at gov.gr, which will offer complete information on all the benefits offered by the State (from benefits to health coverage and social tourism, but also for doctors, daycares, playgrounds and other infrastructures.

“The Ministry of Social Cohesion and Family is reforming and further strengthening the welfare state with an emphasis on supporting the Greek family and more effective support for vulnerable citizens”, pointed out, today at the Inter-Ministerial Press Conference, the minister, Sofia Zaharakis, specifying the measures related to family support, the harmonization of personal and professional life and the reform of the three basic welfare allowances paid by OPECA.

The goals of YKOISO move along 4 axes, according to Mrs. Zaharakis:

  • additional funding
  • more modern approaches, taking into account the best international practices
  • streamlining planning that reflects social and economic realities
  • more equitable distribution of resources

“For the government, social policy is not complementary to our strategy, but the intended outcome of our economic growth and reform agenda. Because we do not consider development or reform as ends in themselves, but as means of achieving our goals for the benefit of our fellow citizens and our country. Valuable tools in this effort are a network of benefits that create a social safety net and protection of the most vulnerable. A net that must be more efficient and stronger” the Minister pointed out.

Lifetime definition of the three-child family – the benefits for 200,000 families

Following the announcements of the Prime Minister by the TIF, the Minister of Social Cohesion and Family announced the lifelong recognition of the status of three children in almost 200,000 thousand families. “It was a decades-long request of the triplets as until now a family lost the rights of the triplets when a child reached adulthood or completed his studies” noted the Minister.

The certification will be done through a platform, which cross-references the registry data.

But what does the lifelong validity of the third child entail?

The quota for public sector recruitment to parents of three children is increased, so that it rises to the same percentage as parents with many children from 12% to 16% of all advertised positions.

At the same time, the benefits that apply to those with many children have already been extended to those with three children and with regard to their participation in the housing programs. Indicatively, in the “My Home” program, the loans to three children were granted at zero interest. Correspondingly to the other social housing programs. Equally at the disposal of the vouchers for the nurseries three-child, multi-child and single-parent families had a common “bonus” of 40 points.

Reform and increase in the three main OPECA benefits

Presenting the main axes of the reform of welfare benefits granted by YKOISO through OPECA, Mrs. Zaharaki emphasized that “benefits are part of the overall map of our social policy. We believe and prove that the benefit policy should be governed by the greatest possible degree of justice and we must certainly constantly make sure that it does not breed greater injustice. After many months of targeted and methodical work, we are expanding the application of an innovative approach, income disregard, which precisely encourages the inclusion of all our fellow citizens who are able to be fully economically active, without having a complete loss of financial support from the State”.

The changes concern the 3 largest benefits based on budget and number of beneficiaries and aimed at covering gaps, distortions, low adequacy and so-called poverty traps.

In particular:

  • The Minimum Guaranteed Income is further increased from 216 euros and 54 euros, to 250 euros and 75 euros for each child and the income limits are increased accordingly, but with targeted criteria for real estate, movable property and deposits. It was already preceded in December 2023 by an increase in the EEE from €200 to €216 (8% increase).
  • The housing allowance is increased from 70 euros, to 125 euros and 75 euros, depending on the income scale, plus a 30% increase for each child, but with targeted real estate and deposit criteria, while a movable property criterion is also introduced.
  • The second and third income scales of the child allowance are combined into one, and thus the child allowance of the third income scale increases from 28 euros per child to 45 euros per child and 90 euros for the third child and subsequent ones.
  • The first scale is increased as is the new scale of the Minimum Guaranteed Income to 75 euros and further to 150 euros and a third child and so on. In addition, property criteria for movable and immovable property that currently do not exist are introduced, which will be expanded in relation to the other benefits.

Example: A couple with 2 children without income from the above will receive 535 euros, while they received 432 euros monthly.

  • The percentage of income from salaried work (20% in Child and Housing Allowance and 30% in the Minimum Guaranteed Income) will not count towards the income limits so that there is an incentive to work.

Extraordinary support in December to 1 million 186 thousand beneficiaries of the four OPECA subsidies

  • 000 families beneficiaries of the EEE will receive in December a 50% increase in the monthly amount (22 million euros) – Total expenditure for 2023 520,019,321 euros
  • 767,000 families beneficiaries of the child benefit will receive an additional monthly installment (70 million euros) – Total expenditure for 2023 at 834,709,301 euros
  • 34,000 beneficiaries of the uninsured elderly allowance will receive an extraordinary aid of 200 euros (7 million euros) – Total expenditure for 2023 151,563,252 euros
  • 180,000 beneficiaries of disability benefits will receive an extraordinary aid of 200 euros (37 million euros) – Total expenditure of OPECA for 2023 at 957,201,270 euros

Nationwide implementation of the “Neighborhood Babysitters” program – 100 million euros from the NSRF

As part of the targeted, pioneering actions to harmonize the personal and professional lives of new parents, the minister announced the nationwide expansion of the “Neighborhood Babysitters” program.

After the pilot phase, the program that provides home care for infants and toddlers from 2 months to 2.5 years old by certified caregivers and is implemented in 62 Municipalities of the country, will be expanded throughout the country. YKOISO has secured an amount of 100 million euros from NSRF funds 2021-2027. At the end of October, the new act will be published for implementation in all municipalities of the country.

“The aim of the program is to improve the daily life of working parents, family planning, facilitating job search, reducing the unemployment of professionals in the field of preschool education, creating employment opportunities, especially for women with many years of proven experience in the field of childcare » said Mrs. Sofia Zaharaki.

So far in the pilot phase, 802 agreements have been signed while 1,308 available curators have been registered.

The amount of the voucher was already doubled during the pilot phase and has been established

  • In five hundred (500) euros out of two hundred and fifty (250) per month if the beneficiary works full-time or is self-employed or self-employed.
  • In three hundred (300) euros out of one hundred and fifty (150) euros per month, as long as the beneficiary works part-time or is registered as unemployed in the Unemployment Register or receives, through another action, a placement value (voucher) for participation in nurseries or similar structures.
  • Only natural persons with strict conditions can be registered in the Register of Curators of this Invitation, while recently grandparents who meet the conditions have also joined the potential curators.

20,000 new places in municipal and private nurseries – End of October the invitation to Municipalities and private individuals

The Minister of Social Cohesion and Family announced that, at the end of October, the invitation to Municipalities and private individuals will be published for the creation of 20,000 new positions in existing or new stations.

The subsidy amounts to up to 50% of the total cost of each child care structure and covers building infrastructure, outdoor spaces and equipment.

With a recent legislative regulation of YKOISO, the participation of all the Municipalities of the country was foreseen. The program is financed with an amount of 70 million euros from the Recovery and Resilience Fund.

Tax exemption of voluntary benefits and vouchers from businesses to new parents

It concerns business benefits for new parents and for a period of up to 12 months from the birth of a child. Up to the amount of 5,000 euros per year increased by an additional 5,000 for each dependent child.

A necessary condition is that there is no reduction in the earnings of the new parent during the months he received the benefit, as well as for the immediately preceding and following 6 months, in relation to the earnings of the last month before the benefit.

A full tax exemption is established for nursery school vouchers provided by businesses to their employees.

Private health insurance for minor children is tax-free

The 15% tax imposed on private health insurance for children up to 18 years of age is immediately abolished. Expenditure: 17 million euros

Free preventive fertility check (AMH) for women aged 30-35

This measure covers a basic fertility examination of young women in order to determine the possibility of fertility at an early stage, which would otherwise lead them to difficulty having a child at an older age. Expenditure of 4 million euros.

Early Intervention Program – Counseling for families

With the aim of strengthening the family and the smooth integration of children with developmental difficulties and disorders, we are proceeding with the implementation of the “Early Intervention” program. It will concern parents and children from 0-6 years old with developmental delays, disorders, disabilities or risk of developing them. The program will be financed with 35 million euros from the Recovery and Resilience Fund.

All-about-myChild: the new online tool for parents and children

A new valuable tool for families will be added to gov.gr. “all-about-myChild” will offer complete information on all the benefits offered by the state such as benefits, health coverage, social tourism, etc. In addition useful information of a general nature such as where to find a doctor, daycare center, playground and all the infrastructures concerning the child and the family.

A Demographic Observatory is created

The National Demographic Action Plan will be accompanied by the creation of the Observatory that will control the implementation and adaptation of policies to the individual data of each region. The project will be carried out with resources of 3 million euros from the NSRF.

National campaign to highlight the value of the child

Mrs. Sofia Zaharaki announced that alongside the implementation of the National Demographic Action Plan, which will soon be presented to the Council of Ministers, a national information and awareness campaign will also be run. “We must reconnect the image of the child and the family with positive emotions and values ​​such as joy, happiness, creation” the Minister of Social Cohesion and Family said in this regard. “The measures, provisions and changes we are making are another step in what we have done and in what we are planning until the end of the four years” concluded Mrs. Zacharaki.

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