Government Announces Financial Support Measures for Pensioners and Vulnerable Groups

The government has outlined a series of financial support measures for pensioners, employees, and vulnerable groups ahead of the holiday season. Highlights include a 2.4% pension increase for two million pensioners, reflected in their January pensions, which will be paid by December 23. This marks a cumulative pension increase of 14% over the last three years, following hikes of 7.75% in 2023 and 3% in 2024, CE Report quotes Athens-Macedonian

Additionally, one-time payments of €100–200 will be given to 700,000 pensioners with a "personal difference" exceeding €10, with payments expected by December 18. Vulnerable groups, including recipients of disability benefits and uninsured elderly citizens, will receive an extraordinary €200 benefit in December. Families eligible for child benefits will receive an additional installment, while recipients of the Minimum Guaranteed Income will receive a 50% bonus payment.

Private sector employees are reminded that the Christmas bonus must be paid by December 20, 2024, one day earlier than the legal deadline due to the weekend. The bonus equals one monthly salary or 25 daily wages.

From January 1, 2025, social security contributions will be further reduced by one percentage point, benefitting both employees and employers. This reduction is part of a broader plan that has already decreased contributions by 5.4 percentage points since 2019, with a total reduction of 5.9 points expected by 2027. The change will increase take-home pay for employees and lower labor costs for employers.

These measures aim to provide financial relief and support economic stability as the year ends.