April 26, 2024 5 min read
Subsidization of insurance contributions for those employers who choose to convert the employee with a “block” into an employee

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Program for subsidizing insurance contributions for those employers who choose to convert block workers into employees announced by the Prime Minister Mr. Αλέξης Τσίπρας, σε δηλώσεις του μετά από σύσκεψη στο υπουργείο Εργασίας.

A prerequisite is the registration on the relevant platform of EFKA.

In the near future, cycles of inspections of the Labor Inspection Body (SEPE) will be carried out, focusing on the phenomenon of false self-employment.

The details of the program:

Αφορά επιδότηση της εργοδοτικής εισφοράς καταρχήν για διάστημα δώδεκα (12) μηνών. Στοχεύει σε όσους «εργοδότες» επιλέξουν να μετατρέψουν τον απασχολούμενο σε αυτούς με «μπλοκάκι» σε μισθωτό. The subsidy also includes the employer's contribution to Gift and Holiday Allowance. The maximum subsidy will be 350€ per month.

• It is designed to cover in principle 40,000 employees, who currently provide services with a Service Provision Voucher to up to two "employers".

Beneficiaries are natural or legal persons who employ employees with Service Provision Vouchers. They must have registered on the relevant EFKA platform by the time of the official start of the program.

The programme provides for an obligation to retain all staff for a certain period of time before the start of the grant. It also provides for the maintenance of the beneficiary employees with the same employment relationship for a certain period after the end of the subsidy.

Ministry announcements for subsidizing insurance contributions

Κύκλοι του Υπουργείου Εργασίας ανέφεραν τα εξής:

"The diagnostic study on undeclared work in Greece prepared by the ILO in July 2016, in collaboration with the Ministry of Labour, Social Security and Social Solidarity and the social partners, stated that one of the main problems to be addressed in the labour market is bogus self-employment. That phenomenon where behind the "block" hides dependent work, the method by which the essentially employee disguises himself as self-employed. The main feature of this disguise is the circumvention of the entire institutional framework of labor protection to the detriment of the employee, in terms of hours, salaries, allowances, holiday gifts, holidays, etc.

The first step on the part of the Ministry was taken with the creation of the EFKA platform and the distribution of insurance contributions to those who provide service-work to up to two employers and are declared in it.

With the programme announced by the Prime Minister, another step is being taken. A large program of subsidizing insurance contributions is put in place for those "employers" who choose to convert their block employee into an employee. Of course, registration on the EFKA platform will be a prerequisite. Thus, the incentive is given for the first time to turn falsely declared self-employment into what it really is, namely paid employment. In this way, the protective function of labor legislation is shielded.

This program for subsidizing insurance contributions will be able to benefit thousands of employees who currently appear, falsely, as self-employed"

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