kathimerini.gr
Greece Lowers Social Security Costs for Overtime
Greece's Ministry of Labor is changing how social security contributions are calculated for overtime, night shifts, and holidays for full-time employees, basing it on the eight-hour workday rate instead of including premiums, thus reducing costs for both employees and employers while maintaining current overtime pay.
- What are the broader economic implications of this non-wage cost reduction, considering its impact on employment and investment?
- This measure aims to boost both employee disposable income and business competitiveness. By reducing employer and employee contributions based on the regular eight-hour wage, the government projects annual savings for employees ranging from approximately €49 to €403 and for employers from €78 to €645, based on provided examples. This builds on previous government efforts to decrease non-wage costs, already achieving a 5.4 percentage point reduction since 2019 and aiming for 5.9 percentage points by 2027.
- How does the new Greek social security contribution calculation for overtime and other supplemental work affect employees and employers?
- The Greek Ministry of Labor and Social Security is reducing non-wage labor costs by changing how social security contributions are calculated for overtime, night shifts, and holiday work. For full-time employees, contributions will now be based on the hourly wage for an eight-hour day, excluding any overtime premiums. This change affects only the calculation of social security contributions; overtime pay remains unchanged.
- How might the implementation of the Digital Work Card in conjunction with this policy address existing issues of undeclared overtime and promote fairer labor practices?
- This policy is expected to positively impact the Greek labor market. The reduction in non-wage costs should encourage hiring and investment. The integration with the Digital Work Card, which tracks actual work hours, combats undeclared overtime, promoting fair labor practices and healthier competition. The projected increase in disposable income could further stimulate domestic consumption.
Cognitive Concepts
Framing Bias
The narrative is structured to highlight the positive aspects of the new regulation. The headline and introduction emphasize the benefits for workers and businesses. The use of positive language and examples of financial gains further reinforces this positive framing. A more neutral framing would present both the advantages and potential drawbacks of the policy.
Language Bias
The article uses predominantly positive language such as "benefit", "increase", "strengthen", and "enhance". While this language reflects the government's perspective, more neutral language could improve objectivity. For instance, instead of "boosting employment", a more neutral phrase would be "affecting employment levels".
Bias by Omission
The article focuses primarily on the positive impacts of the new regulation on employees and businesses, potentially omitting potential negative consequences or criticisms. While acknowledging limitations of space, a more balanced perspective including potential downsides would strengthen the analysis. For example, it doesn't discuss whether this change might incentivize employers to schedule more overtime.
False Dichotomy
The article presents a simplified eitheor scenario: the regulation benefits both employees and employers. It doesn't consider potential complexities or unintended consequences, such as the possibility of employers exploiting the reduced cost of overtime.
Gender Bias
The article doesn't exhibit overt gender bias. The examples used to illustrate the impact of the regulation don't reference gender. However, the article could benefit from explicitly mentioning the potential impact on women or men in specific sectors.
Sustainable Development Goals
The new regulation reduces social security contributions for both employers and employees on overtime, night shifts, and holidays. This leads to increased disposable income for workers and lower labor costs for businesses, potentially boosting employment and economic growth. The government aims to further decrease non-wage costs, supporting business competitiveness and job creation.