Greece: Social partners involvement in unemployment benefit regimes

  • Observatory: EurWORK
  • Topic:
  • Published on: 20 December 2012



About
Country:
Greece
Author:
Penny Georgiadou
Institution:

Disclaimer: This information is made available as a service to the public but has not been edited by the European Foundation for the Improvement of Living and Working Conditions. The content is the responsibility of the authors.

In Greece, protection from unemployment is covered through an unemployment insurance (UI) system. As regards unemployed persons, who are not covered by the UI system, does not exist a distinctive unemployment assistance (UA) system or a general social assistance (SA) system, or a minimum social income. The participation of social partners (SP) in the unemployment insurance system is limited to their participation in the central Management of the Greek Manpower Employment Organisation (OAED) which is the sole organization having jurisdiction in matters pertaining to unemployment insurance and to the unemployment benefits provision system. A representative of the General Confederation of Greek Trade Unions and a common appointed representative of the three peak employers’ organizations participate in the Administrative Board of OAED. Both are appointed as Vice-presidents of the Organization.

1. The characteristics of the UB system in the country

1.1. Recent changes/transformations of the UB system

1.1.1. In the last 10 years, has the country’s UB regime been modified? Have new forms of interventions been introduced?

  1. Regarding the UI:
  • Introduction of electronic registration and an integrated Information Technology system during the period 2002-2003 for monitoring unemployed persons, whether beneficiaries or non-beneficiaries of the unemployment benefit. The aim was to simplify the monitoring and support procedures for unemployed persons, to reduce bureaucracy, to avoid overlapping jurisdictions, etc.
  • Introduction and establishment of the methodology of personalized intervention and advisory support of unemployed persons, since 2001;this is provided by employment counsellors when unemployed individuals request their registration in the Greek Manpower Employment Organisation’s (OAED) registry. The personalized intervention methodology is implemented by OAED by means of two "tools": a) the interview and b) the Individual Action Plan. Its implementation enables the concentration and analysis of qualitative and quantitative data on unemployed persons, the integration of supply and demand in the labor market, the connection between Employment Promotion Centers ([Greek abbreviation:] KPA) and Vocational Training Centers ([Greek abbreviation:] KEK).
  • Special emphasis to the development of active employment policies and employment fostering/support, since 2001, by offsetting the period during which the unemployed person is entitled to receive the benefit with the period during which such person participates in subsidized employment activities or subsidized training activities.
  • Setting the unemployment benefit to 55% of the daily wages corresponding to the minimum statutory salary, since 2007, pursuant to Law 3552/2007. In implementation of this Law, the basic daily UB for full-time employees amounted to 14.69 euros (i.e. 367.25 euros per month). Before 2007, the basic amount of the UB was specified as 2/3 or 66% of the minimum salary without being specified in detail. Therefore, a Ministerial Decision was required on an annual basis, which would specify the amount of the benefit, which actually never reached the stipulated maximum limit. With the same legislation, the UB for part-time employees was set at the 75% of the basic UB for the full-timers.
  • Introduction by the Law 3845/10 of the so-called “Labour market reintegration voucher” (in Greek “epitagi epanentaksis stin agora ergasias”), under which it was attempted to transform the unemployment benefit, granted to unemployed persons entitled to it, to an employment subsidy. The sum of the unemployment benefit may be granted, as an alternative option, as a subsidy to the enterprise or employer offering to the unemployed person employment and the respective social security contributions.
  • Reduction of the basic UB, from 12/3/2012, by 22% and its readjustment to 14.40 euros per day and 360 euros per month. Respectively, the UB has been reduced to 297 euros for the persons whose last monthly wage ranged from 157 up to 314 euros, and to 198 euros for the persons with a wage up to 157 euros. These amounts are increased accordingly to the number of children of recipients. These recent changes resulted from the provisions of Law 4046/2012 (implementing the second memorandum of understanding with the International Monetary Fund (IMF), European Union (EU) and European Central Bank (ECB)) and the ministerial decision reducing the minimum levels of wages and salaries by 22%, from 28/2/2012.
  1. Regarding the UA:
  • Readjustment of the amount of all assistances calculated on the basis of the minimum salary. Therefore, since March 2012, except for the regular unemployment benefit, all the other benefits granted by OAED connected to the National Minimum Wage were reduced by 22%.

1.1.2. For each of these changes/innovations indicate:

  1. date of introduction:

See above 1.1.1. a and b.

  1. who took the initiative (government, unions, employers’ associations, other organisations):

The issue of the financial support in case of unemployment constitutes a part of the welfare policy implemented by the state and is not subject to a collective regulation and negotiation between social partners. Therefore, all changes are carried out on initiative of the government serving at times and through the competent public organization, i.e. through OAED, which is a Legal Person established and operating under Public Law ([Greek abbreviation:] NPDD) and is subject to the jurisdiction of the Ministry of Employment.

  1. the content of the change / of the new programme:

See above 1.1.1. a and b.

  1. the aim pursued:

See above 1.1.1. a and b.

1.1.3. For each of these changes / innovations please indicate from the main SP who was in favour or supported and who was against or resisted to it, and why:

Information not available.

1.2. The main characteristics of the UB system as it is now

1.2.1. Unemployment Insurance.

  1. Coverage:

The UB covers employees who were dismissed or whose fixed-term employment contract has expired. It covers all persons employed under a dependant fixed-term or permanent employment relationship by individuals or entities operating under public or private law or even by the Public Sector, provided that they are insured by the health insurance sector of the Social Insurance Institute ([Greek abbreviation:] IKA) which is the largest Social Security Organisation in Greece. Ordinary public servants of the Public Sector and its organizations, domestic workers and self-employed persons are excluded from the unemployment benefit. For the public servants there is no specific regime of unemployment protection, since they are regarded as permanent personnel until their retirement.

  1. Eligibility:

The general criteria are:

  • to have been identified as unemployed person;
  • the written notice of termination of the employment contract (termination or expiry) and insurance at the unemployment sector of OAED;
  • registration in the OAED’s job search office within 60 days from the termination or expiry of the employment contract;
  • capacity for work.

The special conditions for persons receiving the benefit for the first time are that they must have been employed for a) 80 workdays (WD) per annum during the last two years, of which 125 WD must fall within the last 14 months before the termination of the employment relationship, without considering the last two months or for b) 200 (instead of 125 WD) during the last two years and provided that the person in question was employed for at least 80 days per annum.

Persons receiving the benefit for the second time must have been employed for 125 WD during the last 14 months before the termination of the employment relationship, without considering the last two months.

Persons belonging to special professional categories and specializations such as construction workers, tourism professionals or other seasonal workers, workers employed on motorized fishing vessels,and emery mine workers, must have been employed for at least 100 WD during the last 14 months, without considering the last two months (except for tourism professionals where the last 12-month period before the termination of the employment relationship is considered, including the last two months).

  1. Duration:

The duration of benefit payment is graded according to the number of employment WD of the unemployed person during the respective critical period before the termination of the employment relationship (14 months, 12 months or two years).

The minimum duration of unemployment benefit payment is 5 months and the maximum duration is 12 months.

  1. Replacement rates:

The unemployment benefit is not calculated on the basis of the previous remuneration of the employee but on the basis of the national minimum wage specified now under the national legislation. Since 2007 the benefit is set to 55% of the minimum salary plus 10% more for each dependent member of the unemployed person’s family. Since 12 March2012, the monthly unemployment benefit has been readjusted to 360 euro as a result of the decrease of the national minimum salary by 22%.

  1. Financing:

The funding of the UI system, the unemployment benefit and the unemployment assistance is carried out through contributions of employees (2.67% on their gross remunerations) and employers (1.33% of the gross remunerations) which are remitted to IKA and are subsequently granted to OAED. The government participates in the funding of the system by a small percentage through the subsidy granted to OAED under the government budget.

  1. SP involvement: Yes/No. If Yes, specify briefly:

The social partners are not involved.

1.2.2. Unemployment Assistance. Are forms of UA present? If yes, please indicate their general characteristics with specific attention to:

Special unemployment assistances (UA) are granted to persons subject to OAED insurance but not entitled to receive the ordinary unemployment benefit either because they do not meet the conditions on minimum period of previous employment or because the ordinary UB payment period has expired. These are: a) the special seasonal assistance; b) the special assistance after the expiry of the ordinary UB payment period; c) special assistance after three months from the registration in the unemployed registry; d) special assistance to persons released from prison; e) special assistance in case of suspension of labor supply by the employees or suspension of business activities; f) long-term unemployment benefit after the expiry of the UB payment period.

As regards the latter UA (“long term unemployment”), this is distinct from the above mentioned UA of the “special assistance” benefit (case b). This, it is given to unemployed persons, who in past they have already received the UB for the normal period of 12 months, they have continue with a period of 12 months in unemployment regime and therefore can apply for this supplementary UA. In this case, the “long term unemployment” UA, is in the fixed amount of 200 Euros per month for12 months. For its provision certain criteria have to be covered by the beneficiary, such as: low family income and age limit (45-65 years old).

On the contrary, the “special assistance” benefit (case b), it is given as fix amount calculated in the half of the official UB; it is given only for once time ; and on the special condition that the unemployed person haven’t find a job after one month of the ending period of his/her normal UB payment.

Furthermore, in special cases the following can also be granted by OAED: g) grants to insured persons dismissed due to production readjustments in enterprises (or special unemployment benefit program) and h) grants in case of insolvency of enterprises; i) suspended status benefit.

  1. Coverage:

Seasonal assistance is granted to persons exercising professions of seasonal nature such as: construction workers, forestry workers, musicians, actors, workers at ship repair facilities, etc., due to the special employment conditions making it difficult to meet the conditions for the ordinary unemployment benefit.

Assistance after the expiry of the UB payment period applies in case of expiry of the UB payment period benefit and is granted for one month after such expiry.

Assistance after three months from the registration in the unemployment registry granted to unemployed persons who remain unemployed for three months and had been employed for 60 WD during the previous year.

Assistance to persons released from prison is granted to persons who were employed before been imprisoned.

Assistance in case of suspension of labour supply by the employees or suspension of business activities is granted to employees employed by enterprises, which have closed down and the employer was unable to terminate the employment contract or in case of exercise by the employers of their right of suspension of labour supply.

Long-term unemployment benefit after the expiry of the UB payment period is paid to long-term unemployed persons after the expiry of the UB payment period.

Grants to insured persons dismissed due to production readjustments in enterprises are granted to employees who have been dismissed because the enterprises employing them are facing economic and technical problems or have undertaken production readjustments.

Grants in case of insolvency of enterprises are paid to employees who become unemployed due to bankruptcy or liquidation of the employer.

Suspended status benefit granted to employees put in suspended status by the employer.

  1. Eligibility:

A general condition applicable to all assistances is that the beneficiaries either do not meet the conditions on employment period for the ordinary benefit or that their right to receive the ordinary unemployment benefit has expired. In addition, the following apply for each type of assistance:

Seasonal assistance presupposes that the unemployed person has been employed for a specific number of WD (which is different for each type of profession) in the previous calendar year, that such person is employed exclusively in the construction sector in case of construction workers as well as the fulfillment of other special criteria

Assistance after the expiry of the UB payment period and assistance after three months from the registration in the unemployment registry are granted provided that the annual family income of the insured person does not exceed a specific threshold

Assistance to persons released from prison is granted to persons who had been employed for at least 60 WD during the five years before their imprisonment.

Assistance in case of suspension of labor supply by the employees or suspension of business activities is granted to persons who remain unemployed for three months and have been employed for at least 60 WD within one year before the commencement of the three month period.

Long-term unemployment benefit after the expiry of the UB payment period is granted to unemployed persons aged 45-65 whose family income does not exceed a specific threshold.

Grants to insured persons dismissed due to production readjustments in enterprises is granted to long-term unemployed persons, who are approaching pension age, have been employed for 7.500 WD, are over 50 years old and have been employed in a decreasing sector of the national economy in an area of Greece with an unemployment rate double of the national average.

Grants in case of insolvency of enterprises are granted in case the enterprise: a) has suspended (permanently or temporarily) its payments due to bankruptcy or termination of its business activities; b) is under special liquidation; c) is under an insurance liquidation (in case of an insurance company) or d) is under liquidation in order to satisfy the claims of its creditors.

Suspended status benefit is granted to persons remaining unemployed during the term of the suspension status.

  1. Duration:

Seasonal assistance as well as the assistance after the expiry of the UB payment period are granted only once per year as a lump sum.

Assistance after three months from the registration in the unemployment registry, assistance to persons released from prison and assistance in case of suspension of labour supply by the employees or suspension of business activities are granted as a lump sum, up to 3 times per year.

Long-term unemployment benefit after the expiry of the UB payment period is granted for one year.

Grants to insured persons dismissed due to production readjustments in enterprises vary according to each case and in some cases may last until the retirement of the dismissed employees.

Grants in case of insolvency of enterprises are paid as a lump sum.

Suspended status benefit is paid for up to 3 months per year.

  1. Replacement rates:

Seasonal assistance is calculated based on the national minimum salary, is different for each profession and amounts from 458€ (musicians, actors) up to 916€(emery mine workers).

Assistance after the expiry of the UB payment period equals 13 daily unemployment benefits (187.20€)

Assistance after three months from the registration in the unemployment registry , assistance to persons released from prison and assistance in case of suspension of labour supply by the employees or suspension of business activities amount to 15 times the basic daily unemployment benefit (216€) and is granted up to 3 times per year. All assistances are increased by 10% for each dependant family member.

The long-term unemployment benefit after the expiry of the UB payment period amounts to 200 euro per month.

Grants to insured persons dismissed due to production readjustments in enterprises may be: a) either 80% of the salary paid until the termination of the employment relationship and up to 900€ per month or b) provision of an additional amount to unemployed persons participating in a training or retraining program and up to an amount of 900€per month.

Grants in case of insolvency of enterprises include unpaid salaries for 3 months falling within the last semester before the insolvency of the enterprise.

Suspended status benefit amounts to 10% of the average regular remunerations of the last two months of full-time employment.

  1. Financing:

The funding of the assistances is covered by contributions of employers, employees and by the government, as mentioned for the unemployment insurance (UI).

  1. SP involvement: Yes/No. If Yes, specify briefly:

The social partners are not involved.

1.2.3. Social Assistance. Are SA programmes with a direct relationship with the UB system and/or SP involvement present? If yes, please highlight the factors underlying such a relationship.

The SA programmes are not related to the unemployment benefit system.

2. SP involvement in the UB regime

2.1. The development phase

2.1.1. In your country, did SP participate in the development phase of UB programmes over the last decade?

The social partners do not participate in the development phase of the UB programmes.

2.2. The implementation phase

2.2.1. Distinguishing between UI and UA programmes, please describe the SP' role in accomplishing specific functions related to UB schemes (such as selecting the officials in charge of UB’ services, collecting contributions, etc).

As in the above case (cf. 2.1.1), social partners do not participate in the implementation phase of the UB system.

2.3. The management phase

2.3.1. In this case, distinguishing between UI and UA programmes, please describe SP’ role in terms of:

  1. organisational commitment:

The participation of SP in the management of UB systems is almost only limited to the participation of their representatives in the Board of Directors (BoD) of OAED. The Governor of OAED is the Chairman of the BoD, which constitutes the highest management and executive body. The composition of the BoD is based on the principle of representation of the three parties and therefore the BoD is composed of 18 members (the Governor of OAED, 1 Government Commissioner, 5 Government Representatives, 4 Representatives of employees (GSEE), one of them appointed as Vice-president, 4 Representatives of employer organizations: [Greek abbreviations:] SEV, ESEE, GSEVEE [=Greek Industry Union, National Federation of Greek Commerce and General Federation of Professional Handicraft Industry Owners and Merchants of Greece, respectively] one of them appointed as Vice-president, 2 Representatives of OAED employees). The Board of Directors is responsible to specify the means to be used in order to implement the Government Policy, as specified at times, and to resolve on issues pertaining to the powers of OAED and to approve the decisions of the Management Committee of LAEK ([Greek abbreviation for:] Employment and Vocational Training Account).

  1. organisational coordination among possible different levels of SP dealing with UB:

None

  1. dedicated staff (composition of SP’ personnel in charge of UB programs):

None

  1. operational autonomy (self-governing, conditioned by the state, other):

None

  1. financial autonomy (self-sufficient, dependent by the state, other):

None

2.3.2. Distinguishing between UI and UA programmes, please describe the role of SP in case they are engaged in the financial management of the UB funds.2.3.3. Distinguishing between UI and UA programmes, please answer to the following questions:

  • is the SP’ role in the organisation and provision of UB programmes linked to the organisation and provision of other programmes/services (for instance, related to education and training)? Please, specify:

N/A

  • if there is some kind of organisational relationship/integration among different labour market policies and programmes, does it lead also to an administrative/operative relationship between the SP and the Public Employment Service, or with private employment agencies?

N/A

  • if yes, did this lead to mergers, networks or coalitions building among the SP and public and/or private organizations (eventually at the local level)?

2.4. The monitoring phase

2.4.1. SP involvement in monitoring/evaluating the UB performanceThe social partners are not involved in the monitoring and evaluation of the UB system. 2.4.2. monitoring the SP involvement in the UB system

The social partners’ role within the UB system is not subject to evaluation and monitoring. 3. Final observations

3.1. Public debates and policy discussion:

As regards SP participation in the UB system, no specific dialogue has been is conducted so far. However, in relation to the UB system, different views and approaches exist depending on the organization.

According to the views of the Ministry of Labour, the option to incorporate elements of compensatory nature to the UI is examined, in particular as regards employees who have lost their jobs and although they have paid large amounts in contributions, they end up being paid the same amount of UI as other unemployed persons. For such cases the option is examined to introduce modifications into the UI system in order to foster the insurance/compensatory features of the system in addition to its providence features and to ensure that UI is provided in a fairer manner.

As regards the trade unions, the demands of GSEE during the last years in relation to the improvement of the system have always included the following: a) increase of the UI up to 80% of the national minimum wage; b) extension of its payment period; c) combating contribution evasion and undeclared work through effective controls. Furthermore, horizontal unemployment subsidization policies are suggested with a view to sufficiently support the smooth transition of the unemployed person (young or long-term unemployed person) to the labour market and to a position offering full and stable employment. As regards areas facing acute unemployment problems, the implementation of development plans concerning individual sectors such as textile-clothing or shipbuilding industry are proposed.

The representatives of the employer’s organizations have not really developed specific proposals in relation to the UB system. However, they have lately expressed requests for the reduction of the non-wage labour costs in general, without specifically referring to any reorganization/transformation of the UB system. The reduction of the non-wage labour costs by 5% already constitutes a term of the recently passed 2nd memorandum (Law 4046/2012), without any indication of the manner in which such reduction shall be achieved.

3.2. Research:

Specific bibliographical references for the participation of SP in the UB system of the country are non-existent.

As regards the UB system in general, the Labour Institute of GSEE ([Greek abbreviation:] INE GSEE) in its annual report for 2011, taking into consideration the global financial crisis under which Greece also suffers, assesses that social security systems play a significant role as financial and social balancing mechanisms. Furthermore, it mentions that the provision of social protection benefits to unemployed persons helps not only in preventing poverty of such persons and their family but also in restricting the decrease of demand, thus limiting the probable depth of the crisis and fostering the opportunity for recovery.

Furthermore, according to the opinion of the Economic and Social Committee ([Greek abbreviation:] ΟΚΕ) titled “Active employment policies and income reinforcement for unemployed persons: deficiencies, challenges, perspectives” issued in 2008, it is proposed, among others: a) to extend unemployment protection to other groups (self-employed persons, persons employed under non-standard types of employment, employees subject to IKA insurance but not to OAED insurance, such as dependant members, persons employed for a specific project); c) simpler and fairer forms of benefit calculation; c) establishment of UA provisions to all insured persons categories not entitled to UB; d) increase of the amount of granted benefits and establishment of a minimum guaranteed income etc..

Finally, according to the Report of “the Greek Ombudsman”, an Independent Authority, entitled “Unemployment Allowances: Rights of unemployed persons and operation of the OAED agencies”, issued in 2007, it is proposed, among others: a) to redefine the term “unemployed person” based on current data and conditions and to provide benefits to other categories of employees (employees under flexible forms of employment, persons employed for a specific project, teachers/educational professionals employed under fix-term employment contracts, family members-relatives of first and second degree, trainees); b) to modify the conditions for the award of the benefit such as to include the option that the termination of the employment contract may be proven by other means and not solely by a termination notice issued by the employer (e.g. by means of a report drafted by OAED or by the Labour Inspection Corps: [Greek abbreviation:] SEPE); to cover employees in case of suspension of the operation of the enterprise, to abolish the 60-day period for the notification of the expiry or termination of the employment contract to OAED, to make the provision of the unemployment benefit independent of the possession of a residence permit in case immigrants; c) to modernize the unemployment control system, to conduct electronic cross-examination of unemployed persons’ data with respective data kept by other authorities, to reprocess and codify the scattered provisions concerning notification of hiring, firing and voluntary termination.

3.3. Other issues:

In addition to the official public unemployment support system which forms a part of the social policy implemented by the State and is not subject to collective regulation and negotiation between SPs on their own initiative and in the context of the collective employment agreement of 1993, decided to establish a special employment and vocation training fund ([Greek abbreviation:] LAEK), financed by both employees and employers. This agreement was transformed into law (Law 2224/1994) prescribing the deduction of contributions from 1/1/1994 for vocation training, which are deposited into the Special Vocational Training and Education Account ([Greek abbreviation:] ELPEKE), and for employment, which are deposited into the Special Unemployment Joint Account ([Greek abbreviation:] EKLA).

The main purposes of LAEK are:

1. Promotion of vocation training for employees, an objective financed by the amount collected from the employers’ contribution of 0.45% in favour of ELPEKE.

2. Promotion of policies to combat unemployment, to support unemployed persons and, in particular long-term unemployed persons, who are threatened by social isolation to a large degree, an objective financed by the amount collected from the contribution of 0.36% in favour of EKLA. For the latter contribution the employer pays an amount of 0.26% on the gross remunerations and the employee pays respectively 0.10%. The contributions of the employees and employers are collected by IKA along with other social security contributions and are then remitted to OAED.

The special account LAEK is managed by a Management Committee of 9 members, supported at the administrative level by OAED agencies which receive to that end 10% of the prescribed total revenue of the Account. OAED provides the operational and administrative framework for planning, organization, financing and publicity of LAEK activities.

The LAEK Management Committee comprises 4 GSEE representatives, 4 employer organizations’ representatives (SEV, GSEVEE, ESEE) and 1 representative of the Ministry of Labour, i.e. the Governor of OAED.

In 2001, based on an agreement between the social partners, a bill was proposed for the reorganization of LAEK and the achievement of greater flexibility, effectiveness and autonomy through the transformation of LAEK into an independent Legal Person under Private Law named [Greek abbreviation:] ODEDAEK: (Management Organization for Employment and Vocational Training Contributions); however such proposal has not been accepted. Therefore, the manner of operation of LAEK still remains the same.

4. Commentary

4.1. Assessment and comments:

The UB system in Greece belongs historically to the jurisdiction of the government with minimum participation by the SP in its formulation, organization and operation, despite the fact that a large percentage of such system is funded by means of the contributions of the employers and employees. The participation of the SP is limited to the representation of their organizations at the Management body of the competent organization (OAED) and such participation facilitates the development of social consent between the three parties in relation to the operation of the system.

During the last years, the financial crisis, the high levels of unemployment, the large increase of flexible forms of employment and the inability of the enterprises to pay their contributions for unemployment insurance have deprived the system of substantial funds, which are required now more than ever before in order to protect unemployed persons. The last negative development is the drastic decrease of the unemployment benefit by 22%.

As regards the UA, in fact no real social dialogue has ever taken place in Greece on the issue, nor has any relevant coherent government policy been developed, so far. As regards the SA, such a system is in practice almost non-existent.

The financial crisis and depression in Greece constitutes a negative factor for the future development of a substantial dialogue on the establishment of UA and SA systems between social partners and the government.

4.2. Perceived strengths and weaknesses:

The strong points of the Greek UB system include, among others:

  • The general social consent of SP on the amount of contributions, the conditions, organization and operation of the UB system by the public sector;
  • The relative sufficiency of the amount of contributions paid by the employers and employees for covering the expenditures for unemployment insurance;
  • The attempt to link such system with active employment policies;
  • The favourable coverage of seasonal occupations;
  • The fact that the system is entirely supported by IT systems which are constantly upgraded.

Its weak points are:

  • The increase of the unemployment rate and the high demands on unemployment insurance expenditures, which have now become insufficient.
  • The low amount of the unemployment benefit compared to the minimum wage which has become even lower following the last decrease;
  • The payment of a uniform amount of UI and for the same period for all and the lack of grading according to previous insurance contributions and period of employment of each person, a fact contrary to the insurance nature of UI and making such measure seem unfair
  • Short period of payment, insufficient coverage of long-term unemployed persons combined with a lack of effective employment policies;
  • Separate regulation of individual benefits/assistances for special groups hit by unemployment and partial approach;
  • Very low coverage (26%) of the persons entitled to the UB as compared to the total number of the registered unemployed persons. According to OAED data (February 2012), in a total of 956.041 unemployed persons, those entitled to the UB are only 253.344;
  • High percentage of failure to pay contributions on behalf of the enterprises thus depriving the unemployment insurance system of funds;
  • Quite bureaucratic operation of the system combined with insufficient public control mechanisms and high percentages of uninsured employment, a situation which has been improved during the last years;
  • Minimum government contribution;
  • Lack of UA and SA systems.

Penny Georgiadou, Labour Institute of Greek General Confederation of Labour (INE/GSEE)

References

  • Labour Institute of Greek General Confederation of Labour (INE GSEE), Annual Report: Greek Economy and Employment 2011, Athens, 2011
  • Economic and Social Committee (ΟΚΕ), Active employment policies and income reinforcement for unemployed persons: deficiencies, challenges, perspectives, Athens, 2008,
  • The Greek Ombudsman, Unemployment Allowances: Rights of unemployed persons and operation of the OAED agencies, Athens, 2007
  • GSEE, SEV, GSEVEE, ESEE, Codified Basic Regulations of the General National Collective Agreements and Arbitration Decisions of the years 1975-2005, Athens, 2006

Web sites

Legislative sources

  • Law 3552/2007
  • Law 4046/2012
  • Law 2224/1994
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