The government is immediately proceeding with the fundamental change of the criteria for receiving welfare and social benefits for approximately 2 million beneficiaries, so that the provision of financial assistance is now given in a targeted manner, with the upcoming draft law being processed in the Maximos Palace so that by the end of year to be voted by the Parliament.
The first change will concern the conditions for receiving the unemployment benefit as a pilot for 10,000 beneficiaries before the end of the year, as it will now be linked to the salary, but also to the working and insurance life of the unemployed person. The second, which will apply from January 1, 2025, will concern the adoption of new criteria for receiving housing, child and Minimum Guaranteed Income (MIG) benefits, such as deposits, real estate and movable property. The amount available each year for these three social benefits amounts to 1.9 billion euros.
The unemployment benefit will be increased during the first months of unemployment, while it will be increased by a “reciprocity bonus” proportional to the time of continuous work and the amount of contributions the unemployed person has paid during his working life. It will only concern the newly unemployed, while it will be paid, like almost all other OPECA benefits, through a prepaid card.
The beneficiaries of the increase in benefits are those with three children, those with many children, beneficiaries who are included in the second and third scale of the child benefit and beneficiaries of the Minimum Guaranteed Income (which also had the largest increase), provided they meet the property criteria , as to date they do not exist. Only those who had additional income and hid it or were not included in the scope of the criteria until today will have losses.
Minimum Guaranteed Income
With the new year, the Minimum Guaranteed Income is further increased by 16% from 216 euros and 54 euros to 250 euros and 75 euros for each child, with a corresponding increase in income limits, but with targeted criteria for real estate, movable property and deposits. It is recalled that in December 2023 there was already an increase of the EEE from 200 to 216 euros (8%). Approximately 500,000 beneficiaries receive this specific financial aid.
In the EEE there are still today property criteria which will be applied to the other benefits as well. Today, the declared income cannot exceed 5,832 euros, regardless of the number of household members. The total taxable value of the household’s immovable property cannot exceed a total of 90,000 euros for a one-person household, increased by 15,000 euros for each additional member and up to 150,000 euros.
Housing allowance
The housing allowance is increased from 70 euros to 125 euros and to 75 euros, depending on the income scale, with an additional increase of 30% for each child, but with targeted real estate and deposit criteria, while a movable property criterion is also introduced.
Housing Benefit is given to around 260,000 households who pay rent for their main residence, with the recipient having to meet income and asset requirements.
Today, those whose total income does not exceed 7,000 euros for a one-person household receive an allowance, increased by 3,500 euros for each additional member. For the first minor member of the household in a single-parent family, a surcharge of 7,000 euros is set. In households with unprotected children, an additional 7,000 euros is set for each unprotected child. The total income cannot exceed 21,000 euros per year, regardless of the composition of the household. The income limit for the rent subsidy does not count the amounts of child benefit, non-remunerative disability benefits and foster care allowance. Regarding the property criteria already in place, the total taxable value of the household’s real estate cannot exceed 120,000 euros for a single person household, increased by 15,000 euros for each additional member and up to 180,000 euros.
Deposit limits for each type of household (including deposits, shares, bonds, etc.) cannot exceed 7,000 euros for a one-person household, increased by 3,500 euros for each additional member. For the first minor member of the household in a single-parent family, a surcharge of 7,000 euros is set. In households with unprotected children, an additional 7,000 euros is set for each unprotected child.
Consolidation
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 for the following ones. Thus, the most favored are the beneficiaries who belong to the second and third income scale of the child benefit, provided they meet the property criteria of movable and immovable property and deposits that will be established. According to the Minister of Social Cohesion and Family, Sofia Zaharakis, for a family with two children, real estate should not exceed 210,000 euros and the car should not exceed 1,600 cubic meters.
– Those who belonged to the third income category and received an allowance of 28 euros per month for a child will now receive 45 euros.
– Those who have two children and received 56 euros per month, will now receive 90 euros.
– Those who have three children and received 112 euros per month, will now receive 180 euros.
– Those who have four children and an income of the third scale, from the 168 euros they receive today, they will receive 270 euros.
The child benefit is provided to more than 900,000 families and concerns over 1.5 million children, while the annual expenditure amounts to approximately 1,050,000,000 euros. It is paid in six bimonthly installments based on the data of the last cleared tax return.
Unemployment benefit
Up to 1,200 euros with more than four years of work
Only those who lose their job after the activation of the new regime will be affected by the proposed changes to the unemployment benefit, which will be included in a Joint Ministerial Decision. According to information from Realnews, the new allowance will consist of two parts – fixed and variable (remunerative). The amount of the allowance will be graduated, depending on the years of insurance-employment and the amount of salary, and can reach up to 1,200 euros for unemployed people who have been on the labor market for more than four years. Conversely, those with fewer years of employment will receive the lower amount of 509 euros.
Also, the total annual amount of the unemployment benefit – as derived from the minimum wage – will not increase, but will be paid in advance. That is, a larger allowance in the first months and a smaller one thereafter. Based on a possible scenario, in the first months of unemployment the benefit will amount to 70% of the minimum wage.
Based on the planning of the competent Minister of Labor and Social Security, Nikis Kerameos, even the fixed part of the allowance will be reduced for those who work part-time, on a rotating or casual basis. According to information, new criteria and time limitations for its payment will also be provided for seasonal workers. Furthermore, it is possible that the duration of the payment of the allowance, which is currently between five and 12 months, will be extended and reach up to 24 months, depending on the days of employment. The 200 euro allowance paid to the long-term unemployed (over 12 months) is expected to be merged into the new increased unemployment benefit.
The payment of the allowance will be combined with the obligation of the unemployed to join a training program in order to acquire the expertise they need to be placed in a job. Additional benefits will also be provided to specific groups of the unemployed, such as Christmas/Easter gifts, allowances per protected member, allowances for single-parent families, etc.
Read the Realnews article here
Read the Realnews article here
Source: www.enikos.gr
