How the «cost-of-living allowance» will be distributed by April 21

An amendment by the Ministry of Labor and Social Affairs, submitted to the Ministry of Health’s draft bill («Ratification of the Individual Donation Agreement dated March 17, 2022 – Project VIII, Annex 12 of the Grant Agreement dated September 6, 2018, between the ”Stavros S. Niarchos Public Benefit Foundation” and the Greek State for the strengthening and upgrading of health infrastructure – Provisions for addressing the pandemic of COVID-19 coronavirus and the protection of public health»), the terms and conditions for the provision of emergency financial assistance to low-income pensioners, recipients of disability benefits, uninsured seniors, recipients of the Minimum Guaranteed Income, and recipients of child benefits, prior to Easter and, more specifically, by April 21, following the Prime Minister’s relevant announcements, Kyriakos Mitsotakis, earlier this month.

As has already been announced, The total cost of the program is estimated at 324 million euros and involves 1.7 million beneficiaries. These support measures benefit approximately 1.4 million households, comprising more than 3.2 million people, to help them cover part of the increased costs of goods and energy.

Specifically, the Ministry of Labor and Social Affairs states the following in its announcement:

«A. Regarding the one-time financial assistance of 200 euros, which will be provided to approximately 677,000 low-income pensioners by April 21, 2022, (with the cost of the measure estimated at 135 million euros), the following is provided for:

1. Eligible recipients of the benefit are those who, as of March 2022, received:

(a) a permanent or temporary pension, or an advance on a primary pension, due to old age, disability, or death,

(b) a pre-retirement benefit,

(c) disability benefits (those paid by e-EFKA),

(d) This also applies to pensioners who receive a pension from the General Accounting Office, in accordance with the provisions of paragraph 3 of Article 4 of Law 4387/2016 (war invalids, artists, etc.).

1. In order to identify the final beneficiaries, it will be determined whether all of the following conditions are met:

• the annual taxable personal income for the 2020 tax year does not exceed 7,200 euros,

• their annual family taxable income (the sum of the taxable incomes of the taxpayer and his or her spouse or civil partner) does not exceed 14,400 euros,

• the total value of the household’s real estate, as determined by the 2021 ENFIA administrative assessment (for the 2020 tax year), does not exceed 200,000 euros,

• are tax residents of Greece and have filed an income tax return for the 2020 tax year.

1. As mentioned above, the amount of the subsidy per beneficiary is 200 euros, regardless of the number of dependents. If both spouses are eligible for the benefit, then the benefit is paid to both beneficiaries.

2. The benefit will be tax-free, exempt from seizure, and will not be offset against any debts the retiree may have.

3. In order to identify the final recipients of the emergency financial assistance, e-EFKA and the General Accounting Office will send the Independent Authority for Public Revenue (AADE) a file containing the Tax Identification Numbers (AFM) and Social Security Numbers (AMKA) of all potential beneficiaries, so that cross-checks can be performed against the data held by the AADE and to ensure that all the established eligibility requirements are cumulatively met. The AADE will generate the file containing the final beneficiaries, which will be sent to e-EFKA and the General Accounting Office (G.L.K.), which will then proceed with the payment.

B. With regard to the provision of emergency financial assistance to the approximately 167,000 recipients of the OPEKA disability allowance, it is provided that, for April, cash welfare benefits will be increased by 200 euros. The increase will be paid as a one-time payment no later than April 21. In other words, it will precede the regular payment of the monthly welfare benefit, which will take place on April 30. The cost of the measure is estimated at 33.4 million euros.

It is also provided that the monthly pension for uninsured elderly persons and the social solidarity allowance for uninsured elderly persons will be increased by 200 euros for the approximately 35,000 beneficiaries. In this case as well, the increase will be paid as a one-time payment by April 21. The cost of the measure is estimated at 7 million euros.

It should be noted that, if a low-income pensioner of the EFKA is also a recipient of a disability or other benefit from OPEKA, they will receive only the low-income pensioner supplement.

C. With the aim of supporting recipients of the Minimum Guaranteed Income—that is, households living in extreme poverty— a double payment will be made in April to its approximately 240,000 beneficiaries. The additional payment will be a one-time payment and will be made prior to the regular payment scheduled for April 30. The cost of the measure is estimated at 50.9 million euros.

D. A one-time financial assistance payment is also provided for April to families receiving child benefits, which is equivalent to one and a half additional monthly child benefit payments. The amount of the assistance is 105, 63, or 42 euros for each child for the first and second child, depending on income level, and 210, 126, or 84 euros for the third and each subsequent child. There are 625,000 beneficiaries, with more than 1 million children, and the cost of the measure is estimated at 97.5 million euros.

E. Finally, Article 3 of the amendment provides for the payment of a pro-rata portion of the 2022 Easter bonus to employees, whose employment contracts were suspended in January 2022 as part of measures to address the consequences of the COVID-19 pandemic.».