A Quadruplex Blow To Salaries, Pensions, Gratuities, Benefits
Further cuts in main pensions, faster reduction of supplementary pensions, increase of contributions, cuts in healthcare costs and fight against contribution evasion are included in the plan of the Labour Ministry, in order to ensure the fifth instalment of the aid loan.
These decisions are part of a partnership agreement, according to ministry officials. Greece should achieve the objective of reducing the state deficit to 7.5% of GDP at the end of the year, while the international lenders should resolve their differences in order to proceed with the release of the fifth aid tranche.
Under this “agreement”, the Ministry of Labour has to save €9.5b by 2015, of which €2.73b within 2011.
Under the plans, which have not been finalized yet, as the quantification of several objectives is pending, the additional €1.23b measures are related to:
A) Further reduction of healthcare costs, referring to a total decrease of €260m in expenditure.
B) Cuts in social benefits in order to save €345m.
C) Strong reductions in pensions by €245m, through temporary measures or reforming of benefits.
D) Increase of contributions for all employees, resulting in an increase of €380m in revenues. A special solidarity levy of 1% will apply to civil servants, while in the private sector the corresponding increase will be share to both the employer and the employee.
(capital.gr)