By Dimitris Katsaganis
High inflation in 2023 will be a government-decided adjustment factor for the level of pensions, wages and contributions.
Based on the existing institutional framework, the main pensions paid, the minimum wage and the contributions of the self-employed and farmers should be adjusted in 2023.
First of all, the pensions of the main insurance branch of the e-EFKA should be adjusted from January 1, 2023.
The institutional framework provides that the amount of pensions will be determined by 50% and by the growth rate of 2022 by 50%.
Latest information puts the rate of growth gaining ground for 2023 in the economic staff at 6.5% (based on the latest EU forecasts for growth of 4% and inflation of 8.9% this year)
This increase will be real for all “new” pensions, i.e. those requested by retirees after May 13, 2016. The increase will be accounting for “old” pensions, i.e. those requested by retirees before May 13, 2016. The increase will be given before the Christmas holidays together with the January pensions.
The second adjustment foreseen by the existing institutional framework concerns all the insurance contributions of the self-employed (formerly OAEE, formerly ETAA) and farmers (formerly OGA).
Based on the current insurance law, these contributions should increase from January 1, 2023 by the same rate of inflation for 2022.
If the latest forecasts of the Commission for inflation of 8.9% are verified, the contributions of professionals and farmers in 2023 should increase by 8.9%.
However, according to information from Capital.gr, the scenario of the “freezing” of this increase for 2023 is considered particularly likely, in order not to burden freelancers and farmers with additional insurance burdens while the energy crisis rages on.
Alternatively, their increase to half of inflation, i.e. to 4.45%, is being considered.
The third adjustment provided by the existing institutional framework by government decision and which will also take into account the inflation of 2022 concerns the minimum wage.
Given the latest (currently revised) inflation forecasts, the government is targeting another significant increase in the minimum wage in 2023, earlier than the law provides.
So instead of the relevant government decisions being made by June 2023, they will be made by March – April 2023. Thus, the new minimum wage is expected to take effect by May 1, 2023 at the latest.
Competent officials confirm the scenario of an increase in the minimum wage to the memorandum levels, i.e. to 751 euros (gross), i.e. an increase of almost 5.5%.
Source: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
