18 changes in labor and insurance legislation that are activated within 2024
The year 2024 is a year of significant changes in terms of work conditions and employment circumstances, with enhancements for a significant portion of pensioners and upheavals in the process of granting allowances. At least 18 legislative interventions that reshuffle the landscape in the fields of labor and social insurance will be implemented. These laws, mainly voted on in the last semester of 2023, will come into effect at the beginning of the new year.
1. In the field of labor, the most significant action is the 'activation' of three-year increments, which will be implemented by recently voted legislative action, earlier than expected. In practice, the measure for 2024 concerns fewer than 100,000 private sector employees, who will see increases from 78 to 234 euros monthly. This is because it only concerns 'old' insured individuals (before 2012) with minimum wage and those who have an active sectoral collective labor agreement with seniority allowances.
2. Also emblematic is the introduction of the digital work card in retail and industry, covering about 100,000 businesses and 600,000 workers, with an expected expansion in catering and tourism from summer onwards.
3. Concurrently, from the beginning of the new year and specifically in February, the implementation of the new 'flexibilities' in the domestic labor market is expected. Examples of these include:
4. The introduction of a 13-hour daily work schedule for concurrent employment with multiple employers.
5. The possibility of terminating an employment contract without severance pay for a six-month probationary period.
6. The opportunity for businesses participating in the digital work card to not declare changes or modifications to the working hours or overtime work before the start, as was done previously.
7. Work on the 6th day of the week in businesses with continuous operation and rotating shifts, with a 40% increase for the additional work.
8. In exceptional cases, the right to work on the 6th day for businesses that do not operate continuously and apply a five-day workweek.
9. The employment of workers on Sundays and official holidays is allowed in specific sectors and activities, such as pilot training centers, the food industry, water bottling, and soft drink production.
10. Regulation of working hours between employer and employee, initiated by the company.
11. Changes will also be made in the process of paying allowances by OPEKA and DYPA. Specifically, in the second semester of 2024, the gradual adoption of the prepaid card for allowances is expected. Beneficiaries must spend at least 50% of the amount of the aid or allowance on electronic transactions and purchases, while cash withdrawals will be possible for the remaining amount. This process will apply to all allowances with some exceptions, such as disability, housing aid, and extraordinary economic support from DYPA.
12. Concurrently, the extension of the provision of special maternity protection to self-employed women and farmers will be implemented, allowing them to receive a monthly maternity allowance from DYPA of 780 euros for 9 months.
13. The national pension increases by 12.41 euros from January 1, 2024, while the percentage of contributory pensions will increase by 3%. This means a second consecutive year of increase for the main pensions of all pensioners. However, about 30% of pensioners will not see any increase in their pocket, due to the existence of a personal difference.
14. The insurance categories to be chosen by approximately 1.3 million non-salaried individuals by January 31, 2024, will have increases from 5.35 to 24 euros per month. The new insurance categories will be in line with the current year's inflation rate, i.e., 3.9%.
Simultaneously, based on the recent insurance law, the following will apply from January 1, 2024:
15. A uniform rule for granting supplementary pensions will be implemented, allowing those with at least 15 years of supplementary insurance to receive their pension through a fast-track process.
16. The retention of 30% on pensions for working pensioners will be abolished and replaced by a contribution on labor income.
17. The maximum limit of debts from insurance contributions for retirement increases from 20,000 to 30,000 euros for professionals and from 6,000 to 10,000 euros for farmers.
18. The operating framework of the Professional Insurance Funds will change, and a graduated taxation will be applied, depending on whether the benefit is paid in a lump sum or monthly, and based on the years of insurance of the beneficiary.