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Social insurance by installments

26/10/2015 11:31
The state will attempt to collect accumulated social insurance debts by installments, while it will grant a discount to fines so as for citizens not to end up in jail.

During the presentation of the Labour ministry’s budget to the finance committee, the minister of Labour and Social Insurance Zeta Emilianidou said that the ministry has prepared a bill according to which a person who has debts to the state, after repaying current debts, will be able to repay the accumulated amount in installments and simultaneously enjoy a discount to the fine imposed.

Now the imposed fine is 27%.

She said that the bill will soon go to the Cabinet and then it will be submitted to the Parliament within 2015.

The Minister noted that social benefits for 2016 are increased.

According to the minister, the ministry's budget amounts to € 954,2 mn, of which € 892,2 mn relate to social benefits.

She stressed that social benefits have not been reduced, indicating that funding increased, with 94% of the Ministry's total budget concerning social benefits.

Social benefits amounting to € 892,2 mn include minimum guaranteed income (MGI), and allowances for low pensioners and children.

The Minister noted that in 2013 when the government took power unemployed people totaled to 46 thousand, noting that today there are 41.927 unemployed people, which is the lowest number of the crisis period.

She said that unemployment stabilized, adding that according to a survey of the workforce the unemployment rate this year is 14.7% compared to 15.4% in 2014.

The Minister also noted that there was an increase in employment by 0.3%, adding that the government’s aim is tackling unemployment.

Referring to the MGI which was implemented since July 2014, the minister said that 13 thousand families or 24 thousand persons who were not supported now receive the MGI costing € 4,5 mn per month.

She added that after completing applications’ approval and care provision, the third phase relates to activating plans for the unemployed and to a 20% reduction in electricity and fees.

She said that there is a € 27 mn funding which is the budget of the directorate-general of european programs for implementing projects for rehabilitating the unemployed, hiring unemployed people and funding for care for the elderly, children and disabled.

According to the minister, since the creation of the allowances registry 225 thousand people receiving allowances, were included in it.

Social security fund’s expenditure amounts to € 1,5 bn and includes old-age, invalidity and unemployment allowances.

As she said, there is a downward trend in spending on unemployment, as this year costs will be €108 mn compared to €117 mn in 2014.

The redundancy fund’s expenditure amounts to €82 mn.

As noted, undeclared work reaches 24%. The minister said that measures will be taken to address the phenomenon in 2016.