A monthly subsidy for low-income pensioners in Greece will be cut by as much as 70 percent, beginning in the coming year, given that that the bonus, known by its Greek-language acronym of EKAS, falls victim to fiscal obligations the Tsipras government has assumed under the third bailout memorandum.
By S. Papapetros
[email protected]
A monthly subsidy for low-income pensioners in Greece will be cut by as much as 70 percent, beginning in the coming year, given that that the bonus, known by its Greek-language acronym of EKAS, falls victim to fiscal obligations the Tsipras government has assumed under the third bailout memorandum.
Under the specific austerity measure, all intermediate bonus levels will be abolished, leaving a flat rate of 35 euros a month for all beneficiaries, i.e. low-income pensioners who paid into private sector funds when employed.
The EKAS bonus allocated last month, November 2017, which was included regular pension payments, extended from 28.75 euros all the way up to 115 euros, with roughly 245,000 beneficiaries receiving the extra monthly benefit.
A joint ministerial decision unveiling new and stricter income criteria is reportedly due within the week. Eligibility will require annual pension benefits – primary and supplementary as well as any other state benefits – to be under 7,022 euros annually.
The total outlay in the draft 2018 state budget tabled recently foresees 82 million euros for the EKAS bonus in 2018, reduced by a noteworthy 238 million euros from the current year.