Gov't seeks to encourage wage increases via contribution cuts

As part of its goal to ease the burden on businesses and to increase disposable incomes, the government has made the final tweaks to its four-year plan to gradually reduce wage contributions.

The plan has been incorporated into the social security bill which will be ratified in Parliament in January and is expected to take effect in July.

Indeed, in the effort to ensure that the measure serves to deter employers from failing to insure (or adequately insure) staff, this reduction applies only to full-time employees.

Presenting the plan, Labor Minister Yiannis Vroutsis stated that reducing contributions will help support the economy and ensure a higher disposable income for all, meaning higher wages.
In practice, the reduction is expected to significantly ease the burden on both individuals and businesses, and it is hoped that it will unleash productivity...